SayEducate

The house that you bought three, five, or even ten years or more ago was the perfect home for your needs at that time. Fast forward to today and the way that you live has changed, so much so that your current living arrangement is cramped or out of date.

Should you sell your home or should you opt for a renovation? Not an easy question to answer, but one that can be answered by asking yourself several lead up questions. There aren’t any right answers, but the way that you answer each question and the weight that you give to each will. Let’s take a look at several questions you may want to ask yourself:

What are the property values in your neighborhood? Are they going up, down, or are they staying flat? If you’re in a market where prices are falling, selling now could mean that you might lose some money unless the home that you are considering buying has also dropped in price. Pay close attention to real estate agent comps!

Where is the new home located? The further the new home is away from your current residence, the greater your expenses of moving will be, never mind the hassles related to making any move. If you’re staying in the neighborhood, your costs will be limited mostly to moving charges and closing costs, but if you leave your zip code your moving costs will increase, your kids may need to switch schools, your car and homeowners insurance rates could change, etc.

Would your home benefit from a renovation, particularly an expansion? If you need an extra room and a bath, your newer home won’t be much larger than the home you previously had. However, if you’re considering an entire addition that will add 50% more living space to your home, how will your newly renovated home compare with homes in the neighborhood? Homes that dwarf the size of houses on the same street rarely return their full investment.

Will your needs be met regardless of the choice made? Will renovating your current home or moving to a new one resolve your living space needs for the long term? If you’re simply looking at getting an extra room for your teenager, renovating attic space may be the most cost effective renovation chosen. If you’re family is still growing, a new home could be the better choice.

Of course, other factors should be considered when making any change:

• Is your job stable?
• Will you need to make another change within the next few years?
• Do you like your current neighborhood?
• Can you do some of the remodeling yourself?
• If you choose to move, will you rent a truck and move everything yourself?

Finally, map out the amount of living space you will need over the next five years and compare renovating your current home to buying a larger home. Whether you choose to renovate or sell, having all of the information in front of you is the best way to make a sound decision.

Undertaking any renovation project means considering all aspects of the work to be done before getting started. Cost, hiring contractors, possible temporary displacement from your home, and the like must all be weighed. Yet, if a renovation is desired, now is the best time to get it done.

Reasons Why Renovating Should Not Be Delayed

If you delay your renovation project, you’ll soon learn that:

Project costs most certainly will increase — higher fuel prices are pushing the cost of housing materials ever higher. Products that are petroleum based, such as shingles, rise when gas prices go up. Wait a few months and you could be adding hundreds, perhaps thousands of dollars to the cost of the work.

Interest rates may rise — if you are taking out a loan for your home renovation, interest rates are expected to begin rising later this year. Right now, mortgage rates are low, but a shaky economy means that future rates will be higher. Lock in the lowest rate while you can!

Contractor availability — with the housing slump in full force, plenty of contractors are looking for work. This can work to your advantage too — get at least three quotes and compare services offered and prices to find the best deal today.

Of course, when renovating you’ll want to choose your renovations wisely especially if you plan to eventually sell your home. Kitchens and bathroom renovations almost always offer a full return on your investment while most other rooms do not. However, don’t discount the enjoyment a particular room has to offer you as return on investment shouldn’t be allowed to trump your personal satisfaction ever.

Resources

Planning Your Home Expansion Project

All About Spec Planning

Home Equity Lending

Review House Plans

If you are planning to sell your home, then you know that you only have one chance to make a good first impression. If the people pulling up to your home don’t like what they see on the outside, then they won’t be bothered with stepping inside to see what the interior looks like — you’ve already lost a potential buyer.

When real estate agents talk about staging a home, they are referring to arranging the inside of the home in a certain way to maximize its appeal. On the outside, “street presence” or “curb appeal” are two terms commonly used and that is what I’ll cover with you here.

Please read on for some valuable tips that can make a difference for you, especially in a  slow-selling housing market:

Luscious Landscaping — You may enjoy the gardens in front of your home, but a potential buyer may not, especially if what you are growing could mean a lot of work for them. Trim back all unnecessary shrubbery and if that maple tree in the front yard looks sickly, cut it back or remove it.

Paint or Replace Siding — Peeling paint or loose siding can be a drag on any possible sale — you need to make sure that your home doesn’t scream immediate repairs needed when offered for sale.

Update the Garage Doors — If your garage is behind your home, then how it looks isn’t too much of a concern. However, if it is attached to your home and facing the street, what sort of impression do the doors make? Replace that drab, windowless garage door with a contemporary or classic design that includes windows.

Make a Grand Entrance — Your home’s front door and surrounding railings and trim could possibly use some updating. If a door is peeling, then paint it, if lighting is dated, then update it, and if molding is lacking, consider adding it. Thinkflair when redesigning your homes exterior.

Fix Those Fixtures — Broken or drab light fixtures should be replaced. Installing one outdoor post light can have a profound affect on the way your home looks; consider replacing older doorway lights and security lights if they have not aged gracefully.

Replace Gutters and Downspouts — They may not leak and they could still do a decent job of directing water away from the house, but rusty gutters and downspouts can detract from a home’s appearance. If paint won’t do the job, then replace.

Update the Roof, Replace as Needed — Your current roof may pass home inspection, but will it pass the scrutiny of a buyer? The shingles may be fine, but updating the entrance way to incorporate a gabled roof could be a wise move on your part.

Of course, these recommended changes could cost you several thousands of dollars to carry out, but it could be the investment needed to move your home. In a slow-selling market, you need every advantage you can get. Don’t scare off potential home buyers with a home that isn’t attractive to them.

Resources

Home Management Guide

Home Remodeling Center