Selling or renovating: five factors to consider
Are you short of space? You want to change your decor? Do you dream of more light? If you are starting to feel cramped or need a change, you have two options: sell or renovate.
1. What are your needs?
What do you really want? Do you just need a change of scenery? If so, smaller renovations can make you feel better about your home.
Are you expecting another child? Even if your two youngest children can share a room for a while, they will eventually need their own space. You’ll need to set aside a space for each of them.
Your children are gone and you want to create a home of your own, just for you?
In all cases, you must have a clear idea of your current and future needs before evaluating the scope of the work required and making a decision.
2. Will the desired renovations increase the value of the house?
Setting up your man cave, complete with bar and bowling alley, may not increase the resale value of your home. On the other hand, updating your kitchen or bathroom can make your property more attractive.
When thinking about this question, it is helpful to consult a real estate broker. He or she will be able to tell you, for example, whether removing a bedroom to create a larger room will increase the potential sale price or reduce it. In fact, your dream layout may make your home less desirable to young families who want to have several enclosed rooms.
3. Do you have the patience to live in a construction site for a while?
Depending on the extent of the renovation, you can expect to be living in a serious mess for several months. In the current situation, you also have to consider the scarcity of labour and materials.
If you are moving forward with a renovation, expect to be patient. It can take many months from the time you start the process to the time the work begins. Not only are contractors in high demand, but you must also anticipate the time required to obtain the necessary building permits.
4. Can you find what you are looking for in the current market?
Buying a new home can be much easier than embarking on a major renovation. However, you must be able to find what you are looking for. Team up with a real estate broker to evaluate your needs and what is available on the market.
Before you put up a « For Sale » sign in front of your home, make sure you’ll be able to get your hands on a property that suits you, at a price you can afford.
5. Do you like your current home?
A house is the place where we live important moments, where we raise our children, etc. These events will become important memories in our lives and in those of our children.
Living in a house also means living in a neighborhood and developing ties with the neighborhood and local merchants.
Are you willing to give up your attachment to your current home and its surroundings? You may be willing to invest in your home even if you don’t fully recoup your renovation investment.
On the other hand, you may be looking for a change of scenery or a change of scene. In this case, you will be ready to endure the inconveniences associated with a move.
Other elements to consider
If you are looking to renovate your current home or instead of selling, remember to consider the following additional factors:
- Does the structure of the house allow the desired work?
- What are the municipal regulations that you will have to respect?
- Will you have to move temporarily?
If, on the other hand, you want to find a new home, don’t forget to include in your calculations all expenses incurred, such as the welcome tax and moving expenses.
Ask for help
Deciding whether to sell or renovate your home requires complex thinking. Call in an expert such as an architectural technician or a structural expert. Then, most importantly, team up with a real estate broker. This one will help you to see clearly, according to your objectives and your budget.
Source: Centris