Should I remodel or should I move to a new or newer home?
If you want to change your home, your options are remodeling or finding a new one. More and more American families are deciding to stay put and improve their existing home.
To begin with, make a list of all of the upgrades and improvements you’re considering. Be sure to include and needed maintenance. Maintaining your home in good repair is the most critical of all investments that you can make to your home. The shape it’s in matters as much (if not more than) the other attributes your home may have.
After you’ve completed your list, check out the other homes in your neighborhood. Have the other homes in your neighborhood been upgraded and improved similar to what you’re considering? As a general rule of thumb, any remodeling project that brings your home up to the level of your neighbors’ is a worthy investment. Would your proposed upgrades put your home in a higher price range than the others in your neighborhood? A remodeling investment should not raise the value of your house to more than 10-15% above the median sales price in your neighborhood.
In addition to the potential resale value, you need to consider the intangible value – the pleasure you will derive from making your home a more enjoyable place to live.
When deciding whether to remodel your existing home or move, you also need to consider the costs of selling your existing home and buying a new home. In addition to the cost of any maintenance and repairs that might be needed just to make your existing house saleable, selling your home and moving typically costs about 8-10% of the value of your current home The majority of this goes into moving expenses, closing costs, and real estate commissions – items that have no direct impact on your home’s quality.
Remodeling can be stressful, but few experiences are more stressful than moving.
Do you like your neighborhood and your neighbors? If you decide you love your neighborhood and the upgrades and improvements you’re considering wouldn’t put you over the resale limit, remodeling is probably the way to go.
Each year, Remodeling magazine conducts its “Cost vs. Value” report to assess which remodeling projects create the greatest return on investment. We have included a downloaded copy of their 2010-2011 Report for your use.
Remodeling Cost vs. Value Report for Boise, Idaho 2010-11
download “Remodeling Cost vs. Value Report for Boise, Idaho 2010-11 “
© 2010 Hanley Wood, LLC. Reproduced by permission. Complete city data from the Remodeling 2010–11 Cost vs. Value Report can be downloaded free at www.costvsvalue.com
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