How does a homeowner decide which avenue is best? Many people are considering listing their homes on the market, as real estate continues to flourish. The seller’s market can offer homeowners some hefty profit margins if sitting in the right seat. As with any big decision, it is best to examine the pros and cons and talk to industry experts, if the answer still eludes you, we suggest sleeping on it. We have broken this homeowner dilemma into smaller, bite-size chunks.
Some may decide to sell the current home, as is. While others choose to remodel to make it work better for them or refresh the current vibe. Others may consider remodeling to sweeten the sale of the home. Certainly, do your due diligence with research about which projects are sure to increase the salability and your bottom line.
You and the construction company you have chosen to complete the work should have firm numbers determined and signed off on before the project begins. Keep in mind that during renovation, unforeseen issues can arise, and costs will be affected. Here is one example; let’s say you are having your kitchen bulkheads removed for the new, to-the-ceiling kitchen cabinets. What may be hiding in that “dead space” could extend the labor and create a change order, which always increases your cost. The average remodeling job can run between $60 – $150 per square foot, depending on the room. Maximizing your return on investment is key, your real estate agent should be able to provide their advice on which improvements to prioritize, to make the biggest impact and “wow” a would-be buyer.
Neighborhoods featuring starter or smaller homes can be tricky, building a large addition, or completing an extensive renovation may not yield the return you desire at the point of sale. A customary practice is to check the home values in your neighborhood.
Regardless of what improvements you make to your existing home, the price can be dictated in part by those. it’s just wise to be aware and not “overbuild “ for the neighborhood. An experienced real estate agent hears this question regularly, so enlist a trustworthy one by asking good questions.
- What is the current price range of homes selling for, in my area?
- What realistic value would my house be listed at today, if listed “as is”?
- What home improvements will most improve my home’s resale value?
Sometimes all that is needed is a bit of sprucing up, spending hundreds rather than thousands of dollars. A new front door, some new landscape plantings, and a good power washing may be all that is needed.
Your realtor can also create a comparative market analysis (CMA). A CMA shows the active listings of comparable homes in your neighborhood and their locations. It gives you an “oranges to oranges” comparison from all the sales pending and the homes sold in the past six months with the actual sale prices. This knowledge is invaluable to a homeowner stuck on the fence over the decision to remodel or not. Taking reasonable care now, before you spend a dime, will help you set a realistic budget that will not come back to haunt you later if you should list your home.
So Many Factors to Consider…
Would moving adversely alter your commute to work? A New York Post article reported that given so much time is spent in their cars, it should come as no surprise that a new study of Americans who drive to work has uncovered that 68 percent said their entire day could be ruined by a bad commute. Give that unproductive, frustrating drive some serious consideration when it comes to a possible move. Would you be able to take advantage of mass transit if you moved, would this allow for much-needed downtime each day, and could it be beneficial to your life? Are you moving closer to work, which will lead to more family time?
If you have school-age children, a move can impact their lives. Sometimes positively and other times the opposite. Moving to a new school may offer more opportunities, better learning, expanded after-school programming, and more inclusivity. On the flip side, some kids may need extra support while they find their place in a new environment. Be diligent and sensitive to your kids displaying signs of loneliness, relocation depression, or social withdrawal. These could have a long-lasting negative impact on your children’s social development. When moving with a preschooler or a school-aged child, it is of primary importance to discuss any concerns your little one might have and heighten your kid’s anticipation of the wonderful new life you are going to have in your new neighborhood or city, without discounting their fears of the unknown.
If you are retired, there are still plenty of factors to ponder before selling your home. Is your home paid in full? As housing prices soar to new heights, talk to your accountant or banker regarding the financing or pay off a new home. Will you be going to a senior community for ease of life as you age? Do you want to be closer to family or take advantage of a warmer climate? Getting input from others who have made a move in retirement, may be helpful.
Lastly, experts say sleep promotes problem-solving. Studies show that proper sleep helps us navigate the decision-making processes. When solving problems, a lack of sleep can prevent us from making the right decision, as we are unable to assess risks properly. Getting enough sleep when working through complicated matters, allows us to return to it with a fresh set of ideas, and ultimately come to the right solution.
We are here to assist if a remodel is in your future. Our experienced designers will walk you through the process and provide you with solid direction and the creativity that makes Home Studio by Omega projects stand apart. A home remodeling project is an important investment, we’re focused on the highest quality, customized experience from design to build. Regardless of your final decision, whether remodeling to stay or to sell, we look forward to working with you to help you achieve your goals.