Ah, the age-old question: to sell or fix up? If your home is no longer serving you, whether your family has grown since you first bought it, you can’t afford a new house in this market, or you’re looking to downsize, you may have thought about both options. Either way, there’s probably something about your current home – or several things – that you don’t like about it.
Your first thought may be to just move, but in this real estate market, it can be tough to find a new home once you do sell. The prices are high, and sellers are in charge right now. Yes, you may get good money for your home, but will you be able to afford another home afterwards, or even be able to find one with such low inventory?
Sometimes it’s more cost effective and smart to stay put and remodel your house into the property you want it to be. You’ll save yourself the cost of listing your home and moving, but you’ll still get the home you want with a few necessary renovations.
Of course, there are times when you have no option but to sell, such as for a job relocation, a foreclosure or a divorce.
It seems that many homeowners prefer to stay home. Recent Zillow research says that 76 percent of Americans would rather use a good chunk of money to make upgrades to their home rather than use it as a down payment on a brand new home.
But there are many factors that come into play about whether to sell or renovate.
To Sell or Not to Sell: Factors to Consider
What’s more cost effective? Both options will cost you, but take some time to determine which option would be cheaper for you. It’s different for everyone. Sometimes it makes more sense financially to move and other times, the opposite is true. Lay out your potential costs side by side and determine which would be a better decision.
Costs: If you’re fixated on all the money you could get for your house in this market, take some time to think about all the costs associated with selling, such as home prep, seller concessions, moving company costs, closing costs, and real estate fees (loan payoff, penalties, taxes).
Commissions: You’ll likely pay about six percent of the sale price to your real estate agent in commission.
Moving costs: Whether you’re tackling a DIY move (you have to buy all the supplies and take time off work to haul everything out and in) or you’re hiring full-service long-distance movers, these costs will add up.
Minor repairs: You may not want to make major renovations before selling, but there are always minor fixes and prep work that need to be done before selling, such as painting, carpet cleaning, lawn care, cleaning and staging.
Cost of a new home: If you’re moving to a bigger home, the obvious jump in mortgage payment is a huge factor.
Remodeling costs: The costs associated with a home remodel are somewhat more straightforward. You get a quote from a contractor on putting on an addition or gutting the kitchen, and you have a concrete amount in mind that you can use to make your decision. Get at least three estimates from contractors that include prices for labor and materials. Don’t forget to factor in additional expenses, such as staying in a hotel while your master bedroom renovations are going on or eating out for a few weeks while your kitchen is overhauled.
Contact Berkshire Hathaway Premier Properties for Advice on Selling Your Home
In the end, the decision to move or renovate is a highly personal one. If you decide selling is the best option for your family, meet with one of our skilled Realtors who can provide the best advice. Please contact Berkshire Hathaway Premier Properties today at 713-862-0000.