Remodel or Move? – That’s the age-old question when it comes to fixing up or heading out. In today’s post, we’ll show you how to decide.
This week, The Wall Street Journal confirmed what we’ve been feeling as designers and remodelers for some time: people are investing in home remodeling more than they have since the real-estate bubble burst nearly a decade ago.
The John Burns Real Estate consulting and Harvard Joint Center for Housing Studies expect expense for home repairs and remodeling to surpass $300 billion this year, significantly higher than the previous high of approximately $285 billion in 2007.
The reasons for this are somewhat complicated, the article finds. The number of houses for sale is at a record low, houses are getting older and in need of repairs and remodeling, and, of course, people feel more confident investing in their homes than they did in previous years.
With this in mind, here are some questions that anyone debating whether to remodel or move should answer:
- Do you have the space to expand?
If remodeling can’t fix your space problems, the issue may be moot. But consider other ways to maximize the space you have. - How much remodeling can you do before you start over-improving for the neighborhood?
Whatever your home remodeling improvements, they should match the size and sensibility of the area in which you live. Too many improvements do not always translate into higher resale value, and a massive addition may alienate your neighbors. Schloegel Design Remodel can help you make remodeling decisions that make sense financially and aesthetically. - Will remodeling do the trick?
Be realistic about how much remodeling can do. If you want to live in a spacious home on a large lot right now, no contractor will be able to turn your tiny urban bungalow into the home of your dreams. - Will remodeling pay off in the long run?
In a slow market, you can expect to get a lower price for your home and much less of a payback for improvements than you would receive in a fast market. Kitchen and bathroom remodeling projects consistently return the most in resale value while converting a basement into a family room yields the smallest return. Factor in any financing costs you incur if you refinance or use a home equity loan to complete your remodeling project.
If remodeling is right for you, make sure to ask any contractor you interview these questions before hiring them.
Thinking about starting the remodeling process? Contact us today to learn more about how Schloegel can help improve your home.