Remodeling your current home may be a better option for you than finding a new home that fits your needs. Yes, there are plenty of homes on the market, but consider these reasons why many are improving your existing home rather than thinking of packing up and relocating (according to the
National Home Builders Association):
- Remodeling allows you to customize your home to meet your needs and desires. The only similar, but much more costly alternative, is to design a new custom home and have it built to your specifications.
- Remodeling means that you don't have to give up a familiar neighborhood and schools.
- Remodeling is a more efficient use of your financial resources. According to the American Homeowner Foundation, selling your home and moving typically costs about 8-10% of the value of your current home. And much of this goes into moving expenses, closing costs, and broker commissions - items that have no direct impact on your home's quality.
- Remodeling can be stressful, but few experiences are more stressful than moving.
While your home may have fit your living requirements over the years, remodeling it will make your home a more enjoyable place to live while adding resale value. While remodeling may improve the resale value, though, remodeling projects vary greatly as far as investment vs. value. According to the NAHB, “the general rule of thumb is that any remodeling project that brings your home up to the level of your neighbors' is a worthy investment. But it doesn't pay to be the most expensive house on the block - real estate experts recommend that a remodeling investment should not raise the value of your house to more than 10-15% above the median sales price in your neighborhood.”
Remodeling can all you to live comfortably for several more years in your home while you wait for the market to recover fully in your area. Remember, though, that when you do sell, potential buyers will be comparing your home to newer homes. The solution? If possible, says the NAHB, you should look at the current design trends for new homes and incorporate popular features like “great rooms (open kitchen/family room arrangements), master bed and bath suites, and higher ceilings”.
Also, suggests the NAHB, read
Remodeling magazine’s “Cost vs. Value” annual report, which assesses which projects give homeowners the greatest return on investment. You can’t go wrong updating your kitchen and bathrooms, as these are the first things potential buyers consider in buying a new home.
Our tip?
Hire an architect for your home renovation project. Read another blog on why it's beneficial at
http://timberframeblog.blogspot.com/2010/03/home-renovations-hire-architect.html.
