At some point as a homeowner, you will be asking yourself if you should invest in a remodel or just move on to a new one. Families expand, lifestyles change, and weighing the options can be complicated. In some cases, the decision may be made for you. Anyone planning to buy a home in 2021 should be prepared for stiff competition.
Tight supply conditions and strong demand have made the housing market highly competitive and fast-paced. Quick sales and multiple offers are the norm for many, if not most, U.S. cities.
Your decision will ultimately depend on the housing market along with the budget, location, and needs. These important factors play a crucial role in your decision to start over in a new place or transform your existing home. It’s a good idea to write a list of the pros and cons to weigh your options better.
Here are a few ideas to ponder as you do:
Budget – What is your budget for renovations, and will it add comparable value to your home? If the renovations are close to or more than the purchase of a new home, you may consider the alternative option.
Location - Your local real estate market, and even your specific neighborhood, can make a difference when it comes to deciding whether to sell or renovate. If you live in a hot real estate market, it may make more sense to sell. Here are a few ways to gauge the state of your market:
- Research the area: Recent comps should help shed light on what you can expect to sell your house for.
- Assess your home’s marketability or appeal to buyers: Does your home need a lot of work before listing? A home in good condition usually sells faster than a fixer-upper, even in a seller's market.
- Speak with an agent: An experienced local agent can give you an expert opinion on what your home would sell for.
- Consider the neighborhood you’re moving into: If your home has gained lots of value but you want to move to a new house in the same neighborhood, keep in mind that those homes have gone up in value, too, so your equity might not go as far as you think.
Needs vs Wants - Include a list of your absolute must-have needs in your home along with your wants. How does this list measure up to the other pros and cons you put together?
Current Market - As we stated earlier, the market is strong right now so, this decision could be made solely on the potential financial profit. However, when the market becomes flat or somewhat stagnant, you may look more at improving your home to increase its value for a future sale.
Deciding whether you should renovate your current home or buy a new one isn’t easy. If you would like to discuss your future real estate plans more, let’s connect! Team Gaeta is always available to lend our professional experience to help you and your family!