Homeowners often grapple with the question of whether to remodel their current home or sell it. Before deciding here are some things you should consider.
First it’s important to honestly evaluate why you want to make changes. Do you want to move because you are too far from work or other activities? Have you outgrown the size of the house? How’s the neighborhood? Can you afford to move? Will remodeling solve the problem? Can you add more square footage? Will remodeling really make you happy? Here’s what I suggest:
● Define your goals for the next 5-10 years. Where do you see yourself in the future? Where do you want to be financially and emotionally?
● Calculate the costs for remodeling and repairs. Add at least an additional 20-50% for unknown requirements and repairs.
● Calculate your selling and moving expenses.
● Calculate your buying expenses.
● Know your options for mortgage on a new home.
● Are you emotionally prepared for a remodel and your current house being disrupted?
● Are you prepared if the remodel doesn’t go as planned?
● Make sure whatever you choose makes financial sense.
● Discuss both options of remodeling versus selling with your accountant.
● Have a plan B for both options.
● Be realistic in selling price. Here are five important elements to consider in today’s market:
○ Is the price is right?
○ Is the house in a high demand area such as Silver Lake & Los Feliz?
○ Updated kitchen and bathrooms?
○ Well maintained interior and exterior?
○ Staged professionally?