Figuring Out Your Next Move in Real Estate
Selling Versus Renovating
Posted On: Thursday, August 11, 2016
Watch any DIY showcase on television today and you’re going to find the world of real estate is driven into a few categories. Two of the major options, and something that is true for regional listings such as those found in Philadelphia, include buying and renovating. These two are balanced out for individuals that have already purchased a home and are looking at either selling or perhaps staying put. If you have purchased a home, settled on a house, and you find that you want to move out, you may be ready to get your place on the market and sell. However, as you research this option, you may find that your home may not be as valuable as you think, and therefore the other solution may be to renovate and expand your existing property. Both options have their place, but which one is better? That’s something that real estate agents and investors argue about a great deal, and both options can put you on top. It’s for that reason that you may want to look at a few considerations in each category then make a decision as to what you should do next. Assessing the Need and Want Variables Before anything happens, make sure that you make a careful assessment of what your wants and needs are. There are variables at play when you look into hiring a real estate agent to try to buy or sell. You may not be ready financially to purchase a home or to even start looking into renovations of any kind. Do not allow yourself to overthink this or cause yourself stress in trying to figure out what your wants and needs are. If you’re stuck, write down on a piece of paper what the strengths and weaknesses are in your home and then proceed with the options below. Sell The House, Buy Another The first major option that people look into is the notion of selling one home in order to purchase another. This happens when you’ve outgrown the existing property, or you just want to finally search for that elusive “dream” home. Whatever the case is, you are going to find that there are several factors that come into play here. The following are just some of the issues that could arise:
• Value— What is the home value? Is it more or less than the price you’ve paid?
• Mortgage — Is the house paid off or do you still owe on the mortgage?
• Repairs — Does the home need repairs? Are things up to date? Of course, the aforementioned are just a handful of questions that need answering.
In some cases, the issues above thwart the notion of selling a home and therefore can frustrate home owners that are looking for a way out. The Renovation Option Taking a left turn from the notion of selling, you could always look at this option. Renovations can be made to a home to not only increase the value, but to utilize the square footage in a much easier manner. This could be as simple as finishing an attic or basement, adding another room, converting a garage, updating a kitchen, or knocking down some walls. Whatever the case may be, renovations are a smart way to gain some value for the house that you have, increase the living space, and perhaps even help with the sales option down the road. The downside here is the cost break down. You may have to invest quite a bit to not only boost the value of your home, but to hire a competent construction company to build things correctly. The worse thing that you can do is take short cuts in the renovation process and end up under water.