Wednesday, October 7, 2015 / by Vanessa Saunders
Homeowners are faced with numerous decisions throughout the years when it comes to their homes and how to manage them. A home is one of the biggest investments you'll ever make, so decision-making isn't taken too lightly. A difficult judgment homeowners must make is whether to move to a different property or simply improve their current one.
It's not a clear-cut choice, but we've listed the variables that need to be weighed carefully. Your personal finances and the status of local markets are just two issues you will have to consider. Also, think about which improvements give you the most bang for your buck.
Before taking the leap either way, here are some factors to consider:
Thoughts on Selling
- Current market conditions. Is your area flooded with homes for sale? What is the transaction time from listing to closing? Is the market lopsided with more sellers than buyers?
- Local factors. Are there new jobs coming to the city or are companies moving away and jobs decreasing? Will there be a flux of new residents or is everyone trying to sell quickly? Will new jobs bring higher incomes or is downsizing a problem?
- Your home value. What is your home worth? Can you get out of it what you have paid or will you be upside down in it? What is the lowest offer you can accept? Will you be able to offer any help with the closing costs?
- Personal logistics. Can you afford to move to a new house and carry the old or do you have to sell first and then move? How long can you continue to pay the mortgage, taxes and insurance on this property?
Insights into Renovation
- Current market conditions. Will increasing your home's size or features price you out of the area? Sometimes putting in high end finishes that you like or want can make your home worth more than what it will appraise for.
- Local factors: Are buyers looking for homes similar to an upgraded version of yours in that area? Don't create a forever home when buyers move to your area for a starter home if you ever plan to sell for a profit.
- Your home value. You can quickly put in too many renovations and create a home that is worth more than what the area dictates. Take that into consideration when planning your remodel.
- Personal logistics. If you ever plan to sell, these are things to consider but if you really feel like you'll stay there for many years, improving your property can be a wise move.
There's not a magic formula or way to determine the right steps for every homeowner but using a local real estate professional can be a great start. They know the markets and can explain your best options.