With the hit HGTV show Love It or List It hitting the news so frequently to discuss the lawsuits aimed at the program, it’s left a lot of homeowners pondering their situations. Should they remodel their own homes – hopefully doing a better job than the Love It or List It team – or should they cut their losses and sell. While there are pros and cons to both situations, you have a lot of reasons to want to remain where you are, rather than attempt to find something new.
When Remodeling Makes Sense
While the real estate market has been recovering in many areas, it’s technically still soft, leaving a lot of homeowners underwater and even more living in homes that they probably thought had more equity than they do. For this reason, many homeowners have been choosing to remodel, rather than to relocate, for the last several years. On paper, it makes a lot more sense than simply pulling up stakes in hopes of a better home.
By remodeling, you're increasing the value of your home, which means that when the time comes to sell, you’re more likely to get the full worth of your home.
Also by remodeling, you’re likely to get a better interest rate at the bank on a home equity loan than you are on a new loan altogether. So, remodeling may be saving you money long term.
Remodeling saves you money in other ways as well. There are a lot of hidden costs with moving, including closing fees, inspection feeds, the moving costs themselves, and the fact that if your home needs work, you may not have as easy a time selling. You'll need to make those upgrades or kick back more money to the buyer at time of closing to take care of them.
Best of all, you know your home. You know what works and what doesn’t, so a remodel will allow you to address some of these issues quickly and often for less money than moving will cost you.
Remember, unless you have the money to move into a freshly remodeled home that has everything you want, you’re likely going to be just trading problems. Sure, maybe the new home will have more square footage or a bigger kitchen, but these are things that can often be corrected for less than it would cost you to get a new, larger mortgage.
When Moving Makes Sense
Sometimes relocating is the best option. If the location of your current home is too far from your job or family, then moving does make sense. Likewise, moving to get into better schools or a safer neighborhood makes sense as well.
Trying to trade up to a bigger or nicer home, however, often comes with a much bigger price tag. Remember, someone had to remodel that new home to make it what it is – and they will likely want to recoup those costs.
The final reason why you may want to consider moving is if you find things in your current home that make it unsafe or difficult for you to live in through a renovation. Asbestos, mold, and significant foundation problems often cost so much to correct that you may be better off cutting your losses and moving on. Yes, you may still lose money on the sale and the move, but you will gain peace of mind.
Make the Right Choice for You
Only you know what the right move will be for your family, and whether or not that move includes a remodel. If you choose to remodel your current home, be sure to sign up with BEYREP to find a Pro who can help you unlock your current home’s potential, so you can get exactly what you want out of where you live.