Ever wake up in the morning and decide you need an extra bedroom, larger kitchen, or even a new home? Our priorities and needs for our living spaces are constantly changing. Evaluating the options to fulfill those needs can be overwhelming and often prevent us from making decisions that would ultimately enrich our lives.
Similar to the HGTV show, Love It or List It, all homeowners must eventually face the financial and emotional decision to remodel or sell. So, how do you move forward?
William and David Siegel, co-owners of Twin Construction, Inc., have assisted many families in making that big decision. The two most important considerations? Return on investment and family needs. It’s a whole lot easier when both of these factors align. It’s much more difficult when one factor is askew. To simplify the process, they suggest the following steps as a guideline:
Find out the current value of your house.
What could you sell your home for today without renovations? Meet with a real estate professional to determine the current market in your neighborhood.
Determine your needs.
If you are going to live in your house for the next 5, 10 or 15 years, what would need to be changed? List the items by priority. What renovations must be done sooner than later?
Create a budget.
Meet with a contractor to obtain estimates for your renovation wish list. Review the list and re-prioritize (if necessary) based on the estimates obtained. Remember, the contractor estimates you receive will be for budgeting purposes only. A contractor will need more information regarding each project for accurate pricing.
Spend some time viewing properties online or visiting them with a real estate agent. Does the property align with your list of needs and wants? Could you see your family living there? Would a renovation suit your needs better? What are the pros and cons of a move?
Compare the financial and emotional costs.
Based on the information gathered in the steps above, what makes the most financial sense? What makes the most emotional sense?
ABOVE Based on the checklist above, the owners of this Homewood house chose to renovate rather than move.
Speaking from Experience
“When my wife Kim and I were expecting our fourth child we relied on the process above to make an informed decision about whether to renovate or sell. The cost of renovating exceeded the cost of purchasing or building a new home with the desired space. However, our emotional ties to their property were far heavier weighted. We loved our street, our lot, and neighbors. We wanted to raise our children in that specific community of friends and family. A move would not fulfill our list of needs and wants emotionally. We needed to stay. The decision to remodel or sell can be overwhelming. However, after gathering a little financial information and filtering it through the lens of family needs, a Love It or List It move becomes quite clear.” — William Siegel, Co-owner of Twin Companies, Inc.