If you are thinking about a home renovation, you probably wonder how much money you should spend.
Those who plan to stay in the house for five or more years may want to spend more money than those who plan to move sooner.
Consider the points outlined here when deciding if you should go through with your next home renovation.
1. Review The Market
It’s estimated that 35% of American homeowners would rather move than do a major remodel. To find out if you want to move instead of remodeling, take a look at what your home is worth on Zillow and other major real estate websites.
Talking to a realtor can tell you what the home is worth and how quickly it may sell. Also, think about selling costs, closing costs, and moving expenses.
If it makes more sense to remodel than sell, great! But you did your homework, so now you can be confident that your remodel is worth the time and expense.
2. Home Location
The first step to considering a home renovation project, like purchasing an outdoor kitchen kit, best Garage Door Opener is looking at the home’s location and neighborhood. Also, think about the square footage.
These factors are important because people wanting to remodel their homes usually like the location. However, the home lacks the features or square footage they want.
If you want a family room addition, can you add the square footage with enough room in the backyard to keep it usable? Is taking down that wall practical in terms of the expense?
The home’s location also matters because while making home renovations is often beneficial, going too far isn’t. Doing a $100,000 upgrade on your kitchen may be desirable for you, but you will never get anything close to that money back when you sell.
Considering the types of homes in your area and their amenities can tell you how far to go in your renovations.
3. Equity
If you’ve lived in the home for years, you probably have tens of thousands of dollars of equity and savings. Having more equity in your home is a good reason to do a home renovation; you can add to your equity and property value.
You also should think about the renovations you want and the cost. If it’s going to eat up a lot of your equity when you pay for the renovation, you may consider moving instead.
There reaches a point where renovating a home isn’t cost-effective, so you may want to try another home.
4. Timing
How much you should remodel comes down to how long you plan to stay in the home. For example, let’s say you want to do a major kitchen remodel with high-end appliances, new cabinets, flooring, and lights.
The remodel will cost about $40,000. But what if you think you will move within five years? Some experts would suggest making cosmetic changes, such as paint, counters, refinishing cabinets, and flooring.
Making minor changes often makes more sense if you are going to move in fewer than five years.
And if you plan to move next year, you should focus on minor projects that add visual appeal. For example, you might simply replace the front door and garage door, and add flowers and shrubs. These changes add curb appeal.
5. Consider Emotional Attachment
It’s not all about money. Deciding to renovate vs. move is an emotional decision. If you have been in your neighborhood for 10 years, you have roots and moving might not be the best idea.
Think about these factors:
- Children: If you have kids and they love their school, moving could be hard on them, so remodeling could be a good idea.
- Community: You may love your neighbors and have support in the area.
- Commute: It can be tempting to move, but if you have a 10-minute commute in your current home, you may want to remodel.
- Activities: Many families like where they are because the grocery store, nail salon, and gym are five minutes away.
- Family: Do you have family members close by?
It’s important to weigh these emotional factors before you decide whether to remodel or move.
