Buy new or remodel the old one?

Many of you are facing these difficult questions about your own home right now. As time passes, your family’s needs change, and suddenly your home is not as perfect as it used to be. Maybe you’re on the other side of the fence and still love your home, but you really want an extra bedroom or an upgraded kitchen. Is it time to start looking for a new home that better meets your needs or should you remodel it?

This will be a choice that will require a significant amount of time and money, so it is important that you take your time and weigh your options. You will want to consider the financial impact, but also the emotional impact on your family. Start by asking some of these financial questions.

Buy new:

o How much will it cost to buy a new home that meets your family’s needs? o If you move to a new city, what will be the additional costs of living in a more expensive area? o How much can you sell your current home for? o How much will it cost to move all of your belongings from one home to another, plus additional furniture for the new home? o If you move to a larger home, how much will your daily utilities, such as electricity, gas, and water increase? o How much more will property taxes go up?

To get accurate estimates of these numbers, be sure to work with a local real estate agent.

Remodeling:

o What would you like to do and how much will it probably cost? A licensed contractor should be able to help you estimate these costs. o How much value will these improvements add to your home? A licensed real estate appraiser can help you estimate which improvements will have the best return on your investment. o Will the remodeling project temporarily displace you from your home? Will you have to rent? o If you are remodeling your kitchen, how long will you be dining with the family each night?

It is also important to consider the emotional impact of these decisions. Start by thinking about these emotional questions.

Move:

If you answer “Yes” or positive to these questions, your plan is likely to be a move.

o If you move to a new neighborhood, could your children attend better schools? o Would a move help you reduce your work trips? o If you move, would your new neighborhood be an improvement over your current neighborhood? o Could you find a house in your price range that has everything you are looking for?

Remodel:

If you answer “Yes” or positively to these questions, a remodel is likely to keep you happy.

o Do you love your neighborhood, the schools, and your neighbors? o Would your house be perfect if you could change a few things? o Would it be difficult to take your children out of one school and place them in another school where they don’t have friends yet?

Use these questions as a way to get started, but there may be many more that occur to you. The more you ask, the more likely you are to feel fully informed once you make your decision. Sit down with your family (children included) and discuss what you are thinking. Including children will help you understand how important this decision is to them. Create a pros and cons list to see what matters most.

Consider taking the family on a field trip to visit the open houses. This will give everyone a realistic picture of what types of homes are available to replace your current home.

Now is the time to draw some conclusions. What do your answers and your instincts tell you? If you’re still unsure, maybe you need to dig a little deeper? Get the family together again and discuss your options. Expand your list of pros and cons.

If your option is to move, consult a local real estate agent for tips on easy, low-cost improvements you can make to your current home to make it more attractive. Experts agree that kitchens and bathrooms add the most value to your home, so pay special attention to these areas so you can sell your home faster.

If your choice is to remodel, consult a licensed contractor. It’s always a good idea to check with your city to make sure your contractor is properly licensed and has the proper insurance. Your contractor should be able to help you come up with a clear idea of ​​what you want to achieve before starting any work. Changing direction during a project can be very expensive.

Regardless of your decision, it is important that you have adequate funding. If you decide to buy a new home, a professional mortgage counselor will help you determine how much new home you can afford. Your mortgage advisor can also play a critical role in helping you sell your current home by properly financing your home buyer. This is a critical step that many homeowners forget. If a potential buyer cannot qualify to purchase your home, they may lose their new dream home.

If you decide to remodel, it would be a good idea to consult with a mortgage counselor. Together they should be able to assess whether they have enough cash on hand to complete the job, or whether they need to withdraw cash from their capital to complete the job.