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Should You Sell or Remodel Your Home?

Anything that gets as much use as your home shows wear and tear after a few years. Colors and decorative styles look tired and outdated. If you’ve been watching a lot of home improvement TV, you may be in the mood to make changes. Or you may need more room due to an addition in the family. So, do you remodel your home or sell it? 

Some market conditions are in your favor – interest rates are extremely low. The economy is improving, so you’ll likely get back much of what you spend to improve your home when it comes time to sell.   

The question to answer is this: If you improved your home the way you want, would you want to stay in it for a few more years, or do you want a complete change of scene? There are pros and cons to each decision. 

When you remodel your home, you’re bringing it up to a new standard. You may have substantial equity that allows you to borrow the money to renovate easily. By staying put, you can save the hard work and transaction costs of moving as well as the inevitable costs to put your home in the market-ready condition it takes to attract homebuyers.  

Selling also has advantages. You can start a new lifestyle and find a home in an area where you always wanted to live. You can leave the area for greener pastures. You won’t be inconvenienced by extensive remodeling, only by the small jobs and touchups needed to improve your home’s appeal to buyers. 

Talk to your Berkshire Hathaway HomeServices network professional. Be honest that you are considering remodeling, but that you are also open to finding another home with the right price, size, features and finishes. After you view a few homes, you should have a better idea of what you want and what you like. Then you can decide whether to stay and remodel or list your home and move away.  

If you decide to remodel, put together the right team. If you aren’t moving walls or pouring a new foundation, you probably won’t need an architect, but you will need the right contractors, kitchen and bath planners and interior designers to help you put it all together.  You’ll also need to talk to your lender to learn how much you can borrow and if it will cover the improvements you want to make. 

As you’re putting together bids, you may find more work is required that you weren’t expecting. Plan for problems to come up, change orders and delays on materials, so you won’t get upside down with expenses or sideways with your contractor.  

Before you make a decision on remodeling, make sure you are going to get what you want at the price you want to pay and that you’ll be happy with the results for at least several years to come. 

If you decide to sell your home and move, your listing agent will create a comparative market analysis of similar homes to yours that have sold recently and are currently for sale so you’ll know what you can reasonably expect to net from the sale of your home. Keep in mind that all markets have ups and downs so what your agent can show you is only a snapshot of what’s true today. If you’re happy with where your home ranks amid the competition, then it should be a good time to list your home for sale.  

Change is an evolution and will bring some upheaval to your life.  You’ll either have to open your home to workers or to buyers. But if you come out on the other side with what you and your household desire, it will all be worth it.