Should You Consider Remodeling in 2023? Or Is It Better to Sell?
Remodeling is a time-proven method of bringing new life and value into your home. However, sometimes, you have hit the ceiling and it may be time to sell.
While it sounds like a strange consideration, sometimes you may find yourself split between remodeling and updating your current home and moving out altogether. While moving can be a stressful event, living through renovations can come with its own challenges.
So, in order to help you make the best decision for your lifestyle and finances, let’s take a look at when you should renovate your property, and when you should just move.
However, before we dive into the question of remodeling vs selling, if you want to learn more about whether you can use funds from your property to finance a remodeling project, click the link below for a free strategy call today.
When Should You Consider Remodeling?
First, let’s take a look at when you should go ahead and try remodeling your property. There are plenty of considerations, but there are three primary factors for you to look at.
Bring New Life into Your Old Home
If your remodeling plan is meant to bring new life into your old property and make it more comfortable for you and your family, go ahead and do it. After all, why should you move if there are only a handful of changes that you need to turn your house into a dream home? Go ahead and take the opportunity to liven up the place or implement features you have always wanted to have. As well, after many years in the same home, you might just be in the mood for minor changes to make it feel new again.
You Do Not Plan on Moving
If you believe you have found your forever-home, do not feel pressured to throw it away simply because there is some remodeling work that needs to be done. Instead, take the time to roll up your sleeves and make the property truly your own.
Renovations can often appear more stressful than they are, especially if you are planning to hire a professional. However, moving is typically exactly as stressful as it sounds. If you can avoid taking on the additional stress of packing up your life and trying to make everything fit in a new location, do it.
Increase the Value Before Selling
Finally, even if you do plan on selling your home in the near future, there are plenty of small updates and remodeling tasks you can complete the increase the value of the home in order to quickly increase the value of the home before you decide to list.
Some things you can do to increase the value of your home quickly include improving your landscaping, repainting the home, or updating the kitchen and bathrooms. As long as your expenses do not eat up the profits they would create, remodeling before selling a property can be an excellent short-term investment strategy.
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When Should You Sell?
While remodeling can be an amazing experience and has plenty of potential to bring new value into your home, sometimes it is just time to sell the property and move on. There are plenty of reasons people may decide to sell their home. Let’s look at a few of them.
Your Home is Already Valued Above Comparable Properties
If your home is already valued well above similar properties in the area, why not sell your property in favour of a more affordable option. Even if the new property needs the same work, it can occasionally be more worthwhile to move and take advantage of the profit you made on the sale in order to complete the renovations on the new property.
As well, sometimes if your property is valued high enough over comparable homes in the neighbourhood, you can cap out and see virtually zero return on your investment.
The Updates Cost More Than They Are Worth
Speaking of not making a return on your investment, some renovations are simply not cost effective enough to be worth your time.
For example, while there can be a great amount of personal value in knocking down a wall between two bedrooms in order to make one large room, it often can do more harm to the home’s value than good. After all, the home is now going to go onto the market with one fewer bedrooms than it otherwise would have.
Additionally, many luxury elements such as built-in aquariums, high-end kitchens and hot tubs cost much more to install and maintain than you would ever get through the sale of the home. So, if you do not plan to stay there forever, be careful before making these updates.
You Plan to Move in the Near Future
If you know you are going to be moving in the near future, do not waste your time and money renovating your home – especially if those renovations do not come with an immediate spike in property value.
Why would you spend your money to renovate someone else’s home and allow them to experience the appreciation that results from your hard work? It just does not make sense.
Selling May Be More Affordable
Renovations can be expensive and sometimes there are homes on the market that already have all the new features you need at a reasonable price. If the cost of renovations is more than the cost to sell your home and buy a new one that suits your needs, it could be a better financial decision to pack up and hit the road.
In Short
No matter whether you decided to renovate and try remodeling to create your dream home, or pack up and find something new, LendCity has options to suit your needs. Whether you want to refinance and take out equity to pay for your renovations or need to port your mortgage over to a new property, our agents will gladly help you secure the best mortgage financing for your life.
To get started today, or if you have any more questions, give us a call at 519-960-0370 or visit us online at LendCity.ca Alternatively, click the link below for a free strategy call today.