There’s one decision you're going to make when you sell that determines whether your house sells quickly or it sits. Whether buyers make an offer or scroll past it. Whether you walk away with th...
Published May 27, 2022
The Best Use of Time (and Money) When It Comes to Renovations
In the current sellers’ market, many homeowners if they should just remodel instead of selling. It may be cheaper to just stay there. That’s where a trusted real estate professional comes in. They can help you think through today’s market conditions and how they impact what you should – and shouldn’t – renovate or sell.
Sixty percent of Americans agree that moving is the most stressful life event — but is living in a construction zone any easier? If you’re a homeowner and you’re antsy about your current living situation, you have two options: to renovate or move. There’s a lot to consider when making this decision, from your financial situation to how it impacts your home insurance.
When given extra funds and a choice between the two, 76% of Americans said they would rather upgrade their current home than put a down payment on a new one — but that doesn’t mean renovating is always the smarter option. A number of factors impact whether scheduling renovations or buying a new home is the best financial and emotional decision for you and your family.
Below, we’ll review the pros and cons of both renovating and relocating, and we also feature four questions to ask yourself before you call in a realtor or contractor. You can also jump to our flowchart below to help you decide in three minutes or less.
1. Cost: Is it cheaper to renovate or move?
For many Americans, cost is a major factor in home improvement decisions. Whether or not it’s cheaper to renovate or sell depends on your current mortgage situation, as well as how much money you have in savings. Renovations come with immediate, out-of-pocket expenses, whereas moving can put money in your pocket now but cost you a lot more down the line.
2. Emotional attachment: What will you miss about your home?
You and your family may be even more attached to your home than you realize. It may be the place your daughter took her first step, or the last place you saw an ailing grandparent. Consider these emotional implications, both on you and your other family members, before you decide whether you are ready for the stress of moving (and it will be stressful!).
3. Real estate market: Is it a good time to sell?
Even if it is cheaper for you to move as opposed to renovating, will you be getting the most out of your investment? Do some research about market conditions before you list your home. There are also seasonal house selling trends to consider. Homes typically sell faster in spring and summer, and they’re more likely to sell at or above the asking price.
4. Timing: Is the timing right for you and your family?
Not only is moving stressful, it also isn’t always feasible or rational given other life events happening to you and your family members. Consider that moving may mean changing school districts, commute routes, and mortgage costs.
Keep in mind that renovating your house comes with immediate expenses, with the average home remodel costing $46,503. If you are setting money aside for college savings or other finances, can you afford a costly renovation right now, or would it make sense to take advantage of your equity and sell for extra cash?
Moving
Most Americans don’t want to move, but if you’re ready for a big change, it may be your best option. Whether you’ve outgrown your current property, see a good sales opportunity, or simply think the grass may be greener on the other side, there are plenty of reasons to consider putting your home on the market — but check out this list of moving pros and cons first.
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