The “Love it or List it” TV show is a big hit allowing homeowners to either list their home and sell or fix what they have. The hosts both do their best to fix up the existing home so the homeowners love it, or find a better home that has all they want already. Even though it’s a show, it’s a valid question when you’re on the fence about whether or not you should sell your home and find something better or just fix the one you have.
Here are some great points to consider on both sides.
Keep it and Fix it.
If you’re on the fence about deciding whether you should repair your home and fix it up or sell it, understand that you will need a large chunk of money in order to do the repairs, remodel or renovations that you really desire. Will this be more than simply mowing the front lawn, trimming the hedges and may be painting a room or two? If you’re really considering making the home you have now into the home you love, a major remodel may be necessary. Perhaps it’s the kitchen, bathrooms or even the entire layout of the living area or some bedrooms.
This can be a major remodel and these shows usually take anywhere from $50,000-$100,000 to do major remodels depending on the market value in the area. Kitchens tend to be the most expensive rooms to remodel in the house running anywhere from $10,000-$50,000 depending on the type of materials and appliances you choose. Major remodels can add quite a bit to the value of the home but only if you plan on staying in the home for quite some time. For instance: if you plan on remodeling the kitchen to the tune of $25,000 and then turning around and selling it, you may not get that $25,000 back out of the home. This is something to consider and something to talk to your real estate agent about.
If you’re planning on staying in the home for some time, a $25,000 kitchen remodel be exactly what you need to help you fall in love with your home all over again.
Think about the area and what you really love about your home; Do you love the location? The school district? The view? The backyard? A lot of these things don’t change so if you love these items about your home you might consider simply making the house itself into a house you love rather than finding a new home in a new neighborhood that you are unsure of.
Cost is also a big factor. The cost necessary for the remodel? A lot of people get home equity lines of credit or refinance their home but then again, consider that you are taking out a new loan in this will have more debt and more to your monthly mortgage payment or debt payments.
Sell and Find a New Home
If you decide to sell it as-is you can certainly take that money and find a home that you really love, however, you may not get as much for the home as you would if you had done the remodel and then waited a few years to sell. This is something else to consider where you can basically do both. Consider the remodel now in the home that you love, keep it for a few more years, and then sell it for a higher value finding another home that you love.
By buying a new home you can really take the time to check out the neighborhood, school districts, and find a home has everything you really want. However, you may also be out of your price range. Refinancing your existing home and remodeling may be less money than trying to save and invest in a new mortgage with a new home.
Basically, it’s all a numbers game and you need to weigh the pros and cons to find out what works best for you. Do you love static features about your house such as the location in the neighborhood? Do you like the house but hate the location?
You should probably weigh both factors and find out how much each would cost approximately and then how much you’re willing to invest not only now but in the future in either a new mortgage or potentially new debt that you will have to take on for the remodel.
If you’re interested in running some numbers or would like information about homes in different neighborhoods in your own contact my office today. I specialize in the Tri-Valley real estate area and would love to help you find the home of your dreams or put you in contact with a mortgage broker in your area that can help you remodel to your heart content.