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Should You Sell, or Should You Renovate? (Part 2 of 2)June 3rd, 2015 by
When a house no longer fits a homeowner’s living needs, there are two central options: selling or renovating. Part one of this blog listed the pros and cons of home remodeling—this part focuses on the benefits and difficulties of putting a home on the market.
Why Should You Sell?
Some people choose to sell their home because their life changes require a whole new environment, not just an updated property. Buying a new home also gives individuals the opportunity to find a house that includes their wish list items. Fortunately, the housing market seems to be looking up for home sellers—according to the National Association of Realtors, the number of single-family home sales has risen 10.9 percent from last year. Listed below are pros and cons of selling a home instead of renovating.
Location, location, location. Renovations can change a lot about a house, but they can’t change its location. Moving is a preferable option when a homeowner’s current house is not in his or her desired area. A realtor can help a homebuyer tailor the home search to a neighborhood that has better schools for the kids, more parks for the dog, or better access to favorite markets and shopping centers.
Yard space. Similarly, renovations cannot make up for the lack of yard space—in fact, some remodeling projects may reduce the amount of space outside. Moving can allow for more space for kids and pets to play. A new home may also come with great outdoor features such as a pool, an outdoor kitchen, or a fire pit.
Street traffic and commute time. Living in a community with heavy street traffic or living far away from work can cause a lot of daily stress—thus, buying a home in a quieter neighborhood or moving closer to the workplace may be a preferable change for many homeowners. Less time spent in traffic translates into more time that can be spent enjoying family and friends at home.
Bang for your buck. Moving from the city to the suburbs often necessitates a lifestyle change, but this kind of move comes with benefits. Although renovating can give homeowners a slight increase in living space, moving to another area or neighborhood can potentially give people even more square footage for their money. Because of this, homeowners can buy a home that they can grow into.
Why Shouldn’t You Sell?
Choosing whether or not to sell a home is a complicated decision. The process of selling a house and buying a new one may require more work and may cause more stress than a renovation project. Listed below are some disadvantages to selling.
Moving and closing costs. There are a lot costs involved with selling and buying a home. Some expenses include fixing problems in the home, landscaping, home staging costs, commission for the real estate agent, closing costs, moving costs, and then the costs of buying and decorating a new house. So, while a new home can definitely be an investment, it can also be quite expensive up front.
An unfavorable market. Depending on where you live, the housing market may be unfavorable for sellers. If an immediate housing solution is needed, it may be easier to remodel rather than move.
Deciding between selling and renovating a home requires a lot of thought. If homeowners are still unsure about their options, they should consider contacting a remodeling contractor as well as a real estate agent to acquire estimates of how much renovations might cost compared to the potential costs of moving. Homeowners can then use the quotes and personalized predictions to compare and contrast their options—they can reflect on their own or seek the help of a trusted financial advisor.
Sources: Bankrate; HGTV; HouseLogic; National Association of Realtors; Nolo.com; U.S. News & World Report.