When you originally purchased your current home, there may have been a few things you found yourself compromising on. Still, it more than likely, it suited your needs at the time. Fast forward to the present, and you’ve started a family or find yourself working 100% remote due to the pandemic, and you need more space. Or maybe your home is beginning to show its age, and things just seem to fail more often than not. Whatever the case may be, here are five tips to help you decide to “love it or list it.”
Tip #1: Decide Which Is More Cost Effective
One of the most significant considerations when moving or renovating is determining which option is more cost-effective. While moving may initially seem more manageable and less expensive than redesigning and renovating a home, hidden costs can quickly add up to over $10,000. Consider the following costs associated with moving or selling your home:
- Packing supplies
- Realtor commissions
- Closing costs
- Expense of a new mortgage
- Needed repairs
Renovation costs will be determined by the project’s size and the materials selected. A complete home gut can cost around $150,000, with most additions and renovations totaling about $40,000. Typical costs associated with renovations include:
- Materials and labor
- Cost of financing
No home renovation project is without hiccups, so always factor in a cushion of between 10 and 20 percent, just in case you uncover unexpected issues.
Tip #2: Research the Real Estate Market
Before selling and moving, due diligence goes a long way. You should:
- Consult with a real estate agent and determine if it is a good time to buy or sell and the market’s current offerings
- Get an appraisal on your existing home and check out comps in your area
- Make an appointment with a lender to compare your current mortgage rate with the latest offerings
Once you have the most up-to-date information, you can more accurately compare the expenses and benefits of moving with the costs of an addition or renovation.
Tip #3: Evaluate Your Emotional Attachment
All things being equal, your emotional attachment to your home will come into play when deciding to love it or list it.
While moving to a new home may seem exciting at first, don’t underestimate the sentimental value of memories of family gatherings, holidays, or watching your children grow up.
Renovating and remodeling a home can get you what you need while retaining many of those great memories.
Tip #4: Consider Your Environment and Community
Similar to your emotional attachment, you’ll also want to consider your environment and community when deciding if you want to love it or list it. Ask yourself the following:
- Is it safe?
- Is the neighborhood quiet?
- Do you get along with your neighbors?
- What are the schools like in your community?
- Are there parks or recreational areas?
- Will you need to commute if you relocate?
While the answers to these questions may not have a direct dollar value associated with them, they carry just as much weight and importance. No one wants to deal with loud or annoying neighbors or worry about being a victim of a crime. In the end, there are some things a renovation or a move simply can’t fix.
Tip #5: Be Realistic About Stress, Timelines, and ROI
Our last tip is to be realistic about the stress, timelines, and ROI of moving and renovating.
Fox News tells us that over 60% of Americans report that moving is the most stressful life event, surpassing not only home renovations but also divorce. Therefore, should you decide to move, remember that the timeline is set once you get the offer.
The clock starts once your home is under contract, so you should have a game plan for how long it takes to find a new home, pack your stuff, and be ready to go if you want to minimize as much stress as possible.
However, if you think you may still sell your house at some point and want to increase the value, it’s good to keep in mind some renovations provide a better return on your investment than others. Check out our blog, Home Renovations for Best Return on Investment, to see which renovations make the most sense for your budget and needs.
Still can’t decide if you want to love it or list it? Our experienced agents are available to answer any questions you may have. Contact aDoor Real Estate today!