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Should You Sell, or Should You Renovate? (Part 1 of 2)June 2nd, 2015 by
The requirements for any given person’s ideal home can change after certain life events, such as marriage, having kids, adopting pets, or even landing a new job. And for many homeowners, there comes a time when what was once their dream home no longer meets their needs. It is then that homeowners must decide whether to sell or renovate their house. In part one of this two-part series, we’ll take a look at the pros and cons of renovating.
Why Should You Renovate?
Renovating is a valuable option for homeowners. It can be a quick solution (depending on the scale of the renovation), and it allows homeowners to customize their living space. Home renovations are also fairly common—according to the National Association of Home Buyers, the renovation trend has risen since the recent economic crisis. Below are some additional considerations.
The sentimental factor. Feeling emotionally attached to a home is not uncommon. The memories made in a home could mean a lot for the whole family, and renovating allows homeowners to stay in the place where they have a history. This also allows homeowners to reap the benefits of all the hard work they have already put into the home, such as maintenance work and daily upkeep.
Monetary concerns. Depending on the degree of work involved, it may be cheaper for homeowners to remodel rather than move. Renovating the basement or family room can give homeowners more space at a lower cost. For even more space, home additions may prove helpful. Although bathroom or bedroom additions can cost up to tens of thousands of dollars, they may be more cost-effective than selling in the long run.
Renovation investment. Certain home renovations can be an investment in the property, which can be recouped in the future. According to Remodeling Magazine, homeowners who complete two-story additions, minor kitchen remodels, deck additions, bathroom remodels, and basement renovations can recoup a majority of their investment.
Why Shouldn’t You Renovate?
Remodeling may not be a viable option for everyone. Certain renovation projects can be costly and time-consuming—some projects can even have a negative impact on the value of the home. Listed below are more in-depth examples.
Temporary relocation. Depending on the project, it may be necessary for homeowners to temporarily relocate while the renovations are being completed. This can be inconvenient and costly. When deciding between moving and renovating, consider the hotel costs and the additional hassles.
Value-sinking renovations. When renovating, homeowners can customize the space to meet their specific needs. Unfortunately, projects that are too personalized could have a negative impact on future sale negotiations. For instance, removing the bathtub to extend the shower or permanently converting the garage into an office could deter future buyers. If planning to eventually move, homeowners should consider making renovations with the resell value in mind.
Building restraints. Certain renovation projects will require building permits and permission from some neighborhood or community associations. Obtaining these can be a hassle, and some projects might not be approved.
While there are many benefits of home renovations, it’s not a suitable option for everyone. Selling a home can provide a fresh start and other opportunities for homeowners. Check out part two of this blog later this week, which will list the advantages and disadvantages of selling a home.
Sources: Bankrate; HGTV; HouseLogic; National Association of Home Buyers; Remodeling Magazine; U.S. News & World Report.