Personal circumstances generally will lead you to the decision between remodeling the home you’re in or buying a different, more suitable home. Perhaps a career or familial change is creating the need for more space. You may be in a larger home already, and you don’t need the space, or taking care of it has become a burden. You may be on the track of accumulating properties as part of a retirement portfolio.
To help you move you forward with the decision between staying or selling, you should first obtain an understanding of the cost, time, and discomfort involved in the remodel; the second is learning how much you can afford in a new home, taking into consideration your current equity, and how your financial picture may have changed since you last purchased a property.
Here are some reasons you may want to stay in your location and remodel:
Remodeling may be easier than moving to another property.
You may love the location of your property and may not be able to find a better replacement.
You have an established property tax rate you want to keep. There are options to keep you tax rate if you want to scale down and are over 55 years old.
You may be preparing your home for sale.
Before beginning, consider what you are doing to the property:
- Are you creating value; i.e. adding a bedroom, bathroom, or updating the kitchen?
- Are you building for yourself; i.e. are you doing improvements that are specific to your needs, not taking into consideration future resale?
- Are you overbuilding; i.e. spending too much money that you will not get out of the property when you finally do sell it?
- The bottom line is to do the things that are right for you; just do it with your future goals in mind. Remodeling always costs more than you think, so make sure you have a good, reliable contractor who lives up to their promises. You may have to pay more for a good contractor, but it will pay off in less stress and problems for you.
- Get an outside opinion from an architect, home designer or design build contractor on things you can do to your home. You may be surprised at options you may not ever have considered. You may spend some money for this opinion, but the result could be a better project and money saved in the long run.
- At the end of the information-gathering phase, you may find remodeling is not the answer, and a move up property may be a better option.