If you have thoughts of moving in your mind, ask yourself whether you really just want a change in your house or a change in locations. Speaking to real estate agents and contractors can help you to determine which course of action will benefit you most.
Family Comes First
If you have had a small family in a small house, it probably works acceptably for you. Perhaps you have already done some renovation, like new windows or maybe even a new kitchen. These will both add value to your home, if you decide to relocate.
If you are now planning to work from home, you may become too cramped in your present house. You may need an office, and if your family is growing, too, you may want a family room or playroom. Should you finish the basement to give you some much-needed room, or move to a larger house?
Renovation versus Relocation
If you plan to remodel your home further, you’ll want to ensure that the improvements will make you money if you sell your house. Even if you’re looking at your short-term needs, you will want a long-term solution.
A financial planner will show you some ways in which you can invest in your child’s education and in your retirement, as well. If you don’t have a lot of debt, and your earning power is increasing, you may be able to more easily borrow money for home renovation.
If you plan to remodel, your contractor may ask how long you still expect to be in the house. If you are only planning to stay five years or so, you won’t be getting a return on that investment.
What Does Your Real Estate Agent Say?
Your real estate agent may point out that indeed the basement renovation will not make any money for you unless you plan to stay in your house for 10 years or more. Renovations add value, but they don’t change the prime choice in every homebuyer’s mind: Location, location, location.
When you finish a basement, you may only get back about half of your initial investment. Kitchen renovations will net you more – between 60 and 70%. In addition, you don’t want your remodelling to price your home out of the range in which local homes are selling. If the market is hotter, you will get more return on investment.
If you have a question for a real estate agent, you can ask it here
What About Moving?
If you move, you will have to pay real estate commissions, utility hook-ups, moving costs and legal fees. You may be able to take the profit you would make from selling your home and get a good interest rate to buy a bigger home, perhaps in a neighbourhood with better schools.
Whatever you decide to do, think ahead so you know whether you’ll be content with the choice you have made. You may be able to sell your existing home for more than you think, and get a lower interest rate on your new home, which will save you money.
Keep up to date with our latest property listings and feature articles by subscribing to our Facebook page here.