Upgrading your home, buy new or remodel?

Sell It or Settle In?

Remember when your home was NEW HOTNESS! Yes but is it feeling more like old and busted these days? Approximately 60% of homeowners will consider a upgrading their home by age 35. They say it's just too small, outdated, or plain ole… old. Should you sell it and update your style with the purchase of a new home or remodel and stay? Why are you really considering the change? You should be asking yourself these questions.

Do you still love it?

If your house has sentimental value or just feels right, it could be the best place for you. Would a remodel pay off in the end? In many cases, the living space in your home is the problem. Adding a sun-room, kitchen upgrade, master bedroom, or even an outdoor entertainment area in the form of a multi-level deck can vastly improve your home’s comfort and appeal. Be prepared for the mess of a remodel. It could also take a long time especially if it's a DIY project. Timeline changes and hidden surprises causing budget bombs cause stress and can take a real toll on the entire family. On the other hand, an almost new home or newly renovated home is little more than packing and unpacking.

Will this upgrade increase your home’s value for a good return or put it outside the resale market? You have a potential problem if the improvements considerably increase your home's value in comparison to the surrounding homes.

Growing Pains?

Your home may be the perfect size now, but what about 5-10 from now? Its more cost and time effective to grow into your home than it is to grow out of it. Do you actually need more room or a better layout? Is your lifestyle is cramped due to commuting time or not having enough space? These are good reasons to consider a move. By relocating to a better school district, closer to your work, or a home with an improved floor plan you may save monthly expenses as well as reduce stress. Buying may be the right choice, especially if you can profit enough on the sale of your current home to replace it with something better.

Can You Afford It?

Consider the 20% rule. Keeping your mortgage at or below 20% of your annual home income is a good idea for most homeowners. Will your new upgrade keep you within the 20% range? In addition, checking the mortgage rates to see if they’re favorable for refinancing to cover costs or to purchase a new home is key. Will the remodel put you in danger of recapitalizing? If you had to unexpectedly, sell your home would your renovation costs outweigh the property’s value? The fact is there are an awful lot of points to consider when upgrading your home. Please contact one of our Titlequest specialists for answers to these and other related questions.  

It Matters Where You Close ~ TitleQuest

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