Every home owner has been there. You look around your home and try to decide: are you better off renovating the home you have or selling and purchasing a new home? While the decision is very individual, these are a few of the most important factors to consider.
Is your current home livable?
Sometimes renovations are about aesthetic appreciation; other times, renovations are what make a home livable. If your family has increased in size, for example, there may be no way to renovate your home and make it workable. If you merely want a nicer, more up-to-date kitchen, however, selling and repurchasing is a different consideration.
How much hassle are you willing to endure?
A renovation, whether you decide to do it yourself or hire professionals, is quite a project. If you’re going DIY, you spend a lot of your free time working on projects around the house. If you’re hiring professionals, you have to work around their schedule and often take time off work to monitor their progress. Selling and purchasing, on the other side, will require looking at new homes, working with a realtor, and may still require some fixing up at the end.
What is the state of the market?
If your current home is nearly paid off and the housing prices in your area have increased, selling may give you additional capital, which can allow you to get a better home and make a profit. If housing prices in your area are falling, however, selling your home may cause you to lose money and may be a bad idea unless you have no other choice.
How much longer do you intend to stay in your home?
If you are a family of four, but your two children are soon going to be going to university, it may make sense to hold off for a few more years, then downsize your home. On the other hand, if your children are already out of the house or you don’t have children, but an elderly relative may need to move in soon, you may need more space very quickly.
No matter what you choose, you should have clear and open dialogue with your family. Discuss what the best option is for everyone. And remember to consider: some renovations may make it easier to sell your home down the road!