All homeowners find themselves asking the same question at least once in their lifetime: Should I move or will a remodeling project be sufficient? Here are 5 ways you can find out which option is the right one for you.
The most important factor when it comes to making any decision about your house is the finances. There may be a number of different things you may want to do, but you can only do as much as your finances allow. A certain amount that can be used to remodel a house can also be used towards a down payment for a new house. Contrary to popular belief, not all remodeling projects add to the value of your existing house. If that is the case, you are better off using that money to boost the down payment amount on a new house and reducing the overall mortgage value. Also, if you are paying off your existing house, it is better to spend the money on remodeling; it is very difficult to sell a house in a deal that would require the new owners to take over the remaining payments.
Moving up or no move at all
Think about why you are considering a new house. You should be looking for a new house only if you feel that it is time to move up and you have finally have the financial capacity to do so. If all the houses within your budget are very similar to your existing house, then moving really is an exercise in futility. In such scenarios, remodeling the house would be a better financial decision.
A question of space
A good remodeling job can really help you create the illusion of space in your house. However, at the end of the day that is all the extra space is – an illusion. Your house may look more spacious, but it is highly unlikely you would have gained any substantial extra space. If present or future space needs are your primary concern, then moving into a bigger and more spacious house is the better option. You do not want to be one of those homeowners who remodel their houses only to discover that though their house looks stunning, the amount of space that can be utilized for living and storage has remained more or less the same.
Love thy neighborhood?
A major factor that affects the value of a house is the neighborhood it is in. If you are looking to move, ensure that the new neighborhood is just as good as you existing one. If the best houses you could find are in your current neighborhood, it doesn’t make sense to move. You are better off spending that money hiring a remodeling contractor.
Let the market talk
The real estate market is always fluid. One day it’s a seller’s market and the next day the buyers have the advantage. There are a number of factors that affect the real estate market and trying to track them is no easy task. Keep a close eye on what the market situation is before buying a new house or selling your existing one. This is where hiring a realtor pays massive dividends.
Keep these 5 aspects in mind and they will help you make a good financial decision.
This guest post is contributed by Jesse Boyle, a real estate agent. He helps in property management in Sacramento and is one of the most sought after agent. He says investing in real estate property is a good financial move.