Should I Remodel or Move?

Remodeling your home can potentially increase its value and probably help it sell much faster when the time to sell comes around. Remember to exercise caution, however, as it can be very easy to spend too much money on a home remodeling – and there's never a guarantee that you'll be able to get back what you put into your home especially if you over do it for the market value of your neighborhood.

Here are some thoughts on how much to spend:


Determine the areas in your home improvements are needed the most.

Long lasting improvements and repairs will give you the most satisfaction and when your house is placed on the market. The biggest and most financially savvy rooms to remodel are the bathrooms and kitchen. Kitchen remodeling includes new counters ( especially granite) and new up to date cabinets and appliances will increase your home satisfaction and attract more home-buyers when you decide to sell.

Improving bathrooms makes another big impact and many can be do it yourself with vanitys and sink combo units easy to purchase at your local home improvement stores. Eliminating wall paper and updating faucets and fixtures make a big difference for little investment.

Homes that have been updated, it has been proven will sell faster when they are in move-in condition. However it is not a guarantee anymore that you will get your money back dollar for dollar but you should get some. Plus you must realize you will have had the added benefit of enjoying your updates and that is worth something. With that said, make sure you don't "over-improve” your home for your neighborhood. I have seen this done many times and it is hard to let the seller know that while it is beautiful, the market value of the neighborhood cannot jusity it and if a buyer is found who will it will not appraise.

Always determine ahead of time how much it will cost to do the work.

Get estimates from several local reputable contractors if you are not doing the work yourself. It is amazing how prices will vary greatly so do not be surprised. Remember to add an additional 5-10% to this amount to allow for unknown costs that may appear.

How long you plan to stay in your house may determine how much you ahould invest. Investing a larger amount may prove worthwhile because over time your home may go up in value. Plus, you'll have the enjoyment of living in a home that is updated and suits your needs and personal style. In today's market it most likely doesn't make sense to undertake a major remodel if the end result won't suit your long-term needs or if you plan to sell your house in a few years. Major investments are great for long term goals and not short term goals. Quick fixes such as updating appliances and counter tops if your cabinets are current and up to date are great and less expensive especially if you think may be moving within the next few years.

Consult your local real estate agent for ideas if you are unsure of how much to invest. They may also have names of contractors to share. In my office recently someone updated their cabinets ( resurfaced ) and installed granite for as little as $3500 and the house which had been on the market for a long time sold quickley for the minimal investment. The local company also did this is record time.

Your real estate agent can provide you with a comparative market analysis (Home-buyers) of your home, so you can have the current market value. Do not use zilow for this number as it is so wide spread and in some areas not accurate at all. The market value can vary so make sure you keep up to date. Discuss your renovations and estimates with your Realtor get their professional opinion and advice. Your agent may be able to determine whether you can recoup all or most of your investment when it comes time to sell.
Before you get started on a major renovation of your home, try to determine whether it makes sense financially and you have the time to enjoy the remodel. If you have a well planned remodeling goal, without going overboard with the remodeling costs, you increase your ownership satisfaction and potentially increase your home value and sell your home quicker when the time comes.