If you’ve been in your house for several years, it has undergone some wear and tear. Although you love your home, you might wonder if it’s viable to renovate or sell.
This can be a hard decision as most of your childhood memories lie in this house.
Your decision to renovate or sell can be influenced by the age of the house, the current status of the real estate market, and your ability to afford a new home.
A. Factors Determining Whether to Renovate or Sell an Old House
If you have an old house, chances are you are tired of seeing its beat-up status and are wondering whether you should renovate or sell.
But irrespective of your choice, touching up a little if you sell it is a must if you want to fetch a reasonable price.
1. How Old is the House
It’s an old house, but when was it built, and how many renovations are needed to make it look better.
If you have an old home, you’ll have to knock down the walls and ceiling to redo the electrical and plumbing system, which will cost you an arm and a leg.
You might also need a new roof. It will almost look like you are building a new house.
And if you don’t have the finances to cover renovation costs, then it’s better to be getting rid of a house and top up to purchase a new house.
2. Cost of Renovating
Compare the cost of renovating and buying a new home and determine which is better.
If you find that the cost of remodeling is higher, it’s better to cut your losses by selling the house and buying a new home.
3. The Location of the House
Where is the house located? Is there an increase in insecurity and crime, or is the house in a high-priced neighborhood.
It would be better if the house is in a prime area; not only will you be inclined to renovate, but even if you decide to sell, you get a great price.
It would help if you also consider your kids, such as the education system in your area, transportation, safety, and proximity to shopping centers.
4. How Old are the Occupants
How old are you? If you are seniors, it would be best to conduct the basic renovations and continue living there.
Taking up a new mortgage in old age would be an added burden. However, selling might be the most viable option if you are young with a growing family.
Furthermore, you have time and energy to service a new mortgage.
5. Size of the Family
If you bought the house when it was you and your husband, it might be too small and can’t accommodate your growing family. Besides, the lot’s size may be too small to extend the house. In this case, selling is the best option.
6. Benefits and Cons of Renovating
Properties are bound to undergo wear and tear. But the decision to renovate lies with the owner. If you choose to renovate, work with experts.
Many people opt to renovate their old buildings because of the high entry and exit costs in real estate, and don’t forget the sales commission.
You must acknowledge that just because you love your house doesn’t mean it will stay looking good; know when to give up.
However, if your land has a big backyard that allows extension and the attic can be converted into a bedroom, you don’t have to sell. Work with a contractor and find out the cost of renovating, extending, and restoring the attic.
The cost will be less than that of buying a new property, especially in the current economy.
When you renovate, you will enjoy the following benefits:
- Enhanced comfort
- Modern standards
- Lower utility bills as the appliances will be upgraded
- The value of your home will be raised
- More room for your family
Cons of renovating
- You might spend more than you’d have when buying a new property. This happens when you get carried away during renovations and take up more projects.
- While renovation, you’ll be forced to move and rent. And if the renovations take more time than you had planned, you will spend more on rental and the contractors. So, be detailed as possible when hiring contractors. Not only will they stick to your timeline, but they will try as much as possible to stick to the budget, and if it goes overboard, they have a contingency fund you created.
- You can avoid spending more than your budget by looking for low-cost renovations and increasing the space and functionality of your home. This can be done by increasing the lighting, creating storage spaces, and making the room feel spacious and less cluttered.
- Only do things that add value to your home, and use the best paint, as that extra coat of paint improves your house aesthetics.
7. Benefits and Cons of Selling and Moving Houses
Now that we’ve covered the benefits and cons of remodeling, let’s examine the pros and cons of selling.
- You can use the money to top up and buy a new house when you sell. Your new home comes with upgraded facilities.
- You can also choose how many rooms you want to accommodate your entire family.
- You will buy a house that will cater to your present and future needs.
- You can choose a better location in terms of security, transport, proximity to the shopping center, and school system.
Cons of selling and moving houses
- It’s a stressful experience having to pack and unpack your belongings
- It’s expensive. As discussed above, the cost of entering and exiting real estate is high. These costs include:
- Agent fees are 2% or 3% of the total cost of the house.
- Conveyancing fees range between $1,000 and $2,000.
- Staging your home could rack up a pretty decent amount.
B. So, What is Your Decision; Renovate or Sell?
Only you can answer this question after weighing all the pros and cons.
For instance, renovating can save you cost and give you an improved home with modern standards and more space.
On the other hand, selling helps you choose a home that caters to your present and future needs. You also get a chance to choose the best location, but at a pretty high cost.
Before making your decision, answer these questions.
- What is the value of your current home?
- How much will you need to renovate?
- How will you finance the renovations or a new house?
- What’s the current status of the real estate market
- How will your decision affect your family? Are they pro renovations or selling?
Remodeling or selling is a tough decision for every homeowner. But irrespective of your decision, ensure you’ve weighed all the pros and cons and consulted with your family.
Also, ensure you are working with professionals when renovating and selling.
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