The decision to move or remodel your current home is never simple.
Several factors determine whether starting renovations or buying a new home is the best decision for your family. Are you in the right location? Can a different home or renovating your current home make your life easier? Do you have enough space? Cost also ends up being a factor.
While 64% of Americans agree that moving is a stressful life event, living in a construction zone might not be any better. In fact, 76% of people would rather make an upgrade to their current dwelling than pay a down payment on a new home.
There isn’t a clear answer on whether to remodel or sell because everyone’s budget, priorities, and home are different. Let’s dive into a few key things to consider so you can choose what’s best for you.
4 Things to Consider Before You Remodel or Sell Your Home
Before calling your local Dayton builder or real estate agent, you need to consider the pros and cons of relocating or renovating.
Here are the top four questions to ask yourself to help you get started.
1. What is Your Budget?
You’re going to incur costs no matter if you remodel or sell your home. However, your budget widely depends on your current home loan situation and the money you have saved.
If you decide to renovate, you’ll want to set a strict budget to avoid overspending. When you work with a professional builder, you will receive an estimate for potential costs and what’s reasonable for your budget.
For example, renovations often include out-of-pocket expenses, such as:
- Architectural plans
- Financing costs
While selling your home will put more money in your pocket, there are still expenses related to the process and long-term implications with a new mortgage. Common expenses include:
- Agent commissions
- Financing costs
- Moving costs
- Utilities and maintenance
2. Are you Emotionally Invested in Your Home?
The saying “home is where the heart is” might have a deeper meaning for you if you decide to sell your home. Most people have an emotional attachment to their home. After all, it’s where your family has built memories, where you relax after a long day, and where you feel the most secure.
If you’re rooted in your local community, you might not be ready to leave it behind. You’ll want to consider these factors:
- Desirable school districts
- Sense of community within your neighborhood
- Commuting distance to work
- Local attractions like restaurants, parks, and activities
- Nearby family and friends
3. Is Your Local Real Estate Market Strong?
While over five million homes were sold last year, the market has gotten very competitive amidst the COVID-19 pandemic. The current conditions in your local real estate market should have a large influence on whether you decide to remodel or sell.
For example, if you live in a hot real estate market, it might make sense to sell and earn a higher return on investment (ROI). You’ll also want to consider seasonal trends as houses up for sale in the spring and summer typically sell at a higher asking price.
A few ways to shed light on the state of your market include:
- Researching recent real estate comps in your area
- Assessing the equity you’ve already built in your home
- Working with a local agent who can provide an expert opinion
If you decide to renovate, you still need to consider ROI to ensure how much of your budget you’ll recoup when you eventually decide to sell.
4. Do You Have a Timeline?
When you decide to sell your home and you accept an offer, the timeline is predetermined. However, if you sell at the wrong time, your home might end up sitting on the market for longer than you intended.
You’ll need to stay abreast of your local real estate market to determine the right time to list your home.
Remodeling your home will take a level of flexibility and patience as it hinges on your builder’s timeline as well. While you might set a hard deadline, it’s essential to understand that it could be extended if you run into issues.
Make the Smart Home Decision for Your Future Goals
Whether you’re thinking about relocating or need an upgrade, the decision to remodel or sell largely depends on your preference. Before deciding, consider your budget, the local real estate market, and your timeline to determine what’s best for your long-term goals.
Ready to discover your dream home in Dayton and surrounding Miami Valley cities? Get started today with Oberer Homes.
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