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Should You Remodel Your Home, or Sell It?

March 4th, 2015 3:02 PM by Karyn Smith

It happens to almost every homeowner at some point: you realize you can’t stand your dated kitchen, your bathroom is too small, or you don’t have enough bedrooms. Your home just doesn’t suit your needs any more. When this happens, the big question that remains is should you remodel the home that you’re already in, or buy one that better suits you and your family? Answering these questions can help you decide what to do next. 

Questions to ask before renovating or selling your home

How much will your remodeling job cost?
 Compare the cost of remodeling with the cost of selling your home and moving into another one. You can get an idea of renovation costs online at Houzz Real Remodeling Costs. According to Houzz, the average kitchen remodel in Florid costs almost $22,000. 

How old is your house, compared to other houses on the market?
Many homeowners finish one renovation project and realize the rest of their home needs work too. Depending on how old your home is, you may need to consider renovating other places inside the house besides the kitchen. 

How will you pay for the renovation?
 New mortgage rules and lower home values mean it’s not as easy to draw out your home equity to pay for upgrades as it was previously. You will have to take on debt to finance your upgrades, unless you have significant savings you can use. 

Can you sell your house for a decent price?
 Since the recession, home prices are recovering, mortgage rates are low, and people are ready to buy. Many homes that go on the market are being snatched up immediately. Check with a local Realtor® for a market analysis on selling your home.

Other factors to consider before you renovate Renovation costs a lot more than you think. The National Association of the Remodeling Industry (NARI) says to plan on your costs running 10% to 20% more than your initial estimate. Some contractors recommend that you add at least 20% more to your budget, so you don’t get caught with a financial surprise at the end of your project.

Your remodeling job will take longer than initially scheduled.Remodeling can take much longer than anticipated. In the event that this happens, you may have to live through weeks of dust, get used to workmen in your home, and eat takeout if your kitchen is being renovated. 

Your remodeling project may not add much value to your home. 
Many remodeling jobs will only return up to 50% of what you initially paid. Your renovation design may also be out of style by the time you do finally sell your home. Keep this in mind if you plan on doing a huge overhaul in your home. 

It can be difficult to find a qualified contractor at a reasonable price.
 Better contractors usually charge more for their services. If you skimp on the work, you could end up paying twice because you’ll have to hire someone else to come in and fix a bad contractor’s mistakes. In the end, you’ll find it’s usually better to sell your home and buy a new one that fits your lifestyle, rather than renovate. We’re ready to help you find your dream home
Posted in:General
Posted by Karyn Smith on March 4th, 2015 3:02 PM


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