General
Information
Answers to the most Frequently
Asked Questions
of real estate professionals!
Home Improvements |
  |
Remodel or
Move?
Is remodeling something you really want to do or should you move? Which is
the better choice? If you do remodel, should you do-it-yourself (DIY) or
hire a professional? If you hire someone, which type of professional
should you choose? There are so many questions to ask yourself before you
make a firm decision to remodel.
Remodeling and moving are both significant financial investments. The
difference between the two investments is where the money is going. In
remodeling, the money is being reinvested. However, remodeling cannot
offer a change of neighborhood or school system. If these are the reasons
you want to make a change, remodeling may not be the right answer for you.
The American Homeowner Foundation states the cost for selling your home
and moving is at least 10 percent of your current home's value which
covers such costs as real estate commissions and the termite inspection.
This amount does not include the following costs though:
• The actual moving and
storage costs, which could be an additional several thousand dollars,
depending on the distance of the move and the weight of your household
belongings.
• The cost of any cosmetic work that needs to be done to put the house on
the market.
• Any housekeeping services to maintain the house while it is on the
market.
• Any discrepancies between the listing price and the sale price.
• Or the risk of not selling the home.
Moving can be a serious
financial drain. While you are adding up costs, don't forget to tack on
those, in addition to incidental items you always need after a move: new
shelf paper, plants, curtains, bathroom toiletries, etc. However, if you
are looking for a new area to raise your children or a dramatically
different home, then moving may be a good investment of your money.
Then again, how much remodeling could you do with 10 percent (or more) of
the value of your home? Could you change the parts of the house that you
don't like? Before you pull up stakes and move to a bigger home, decide
what it is you want to change. Do you want more space? More light? A new
style? Most of those can be accomplished through remodeling. The best way
to approach this decision is to contact a professional remodeler to find
out what is possible in your particular home and to establish an estimated
budget. With this information, you will be able to make an informed
decision. |