San Fernando Valley Real Estate: Should You Remodel or Sell Your Home?
One of the most difficult, and potentially stressful elements of remodeling your home with the intent to increase the value of it is this: Should you spend all this money on home improvement or just sell your house as it is and start over?Before undertaking any extensive and expensive improvement project, it’s wise to determine whether remodeling is the best option. In some cases it makes more sense to buy another house that will better fit your needs.
The quiz below will help to establish which direction you should take. Answer each question andrecord the number of points associated with that answer.
1.
How far “off” is your present house from the one you would like to live in?
• A little (5)
• Somewhat (3)
• A lot (1) Score: ______
2. What are the property values doing in your neighborhood?
• Increasing (5)
• Staying the same (3)
• Decreasing (1) Score: ______
3.
What are property conditions doing in your neighborhood?
• Getting better (5)
• Staying the same (3)
• Declining (1) Score: ______
How long will you get useful life out of any potential remodeling?
• 10+ Years (5)
• 3–10 Years (3)
• Less than 3 Years (1) Score: ______
5. In relation to your house, the other homes in the neighborhood are:
• Larger (5 )
• Similar (3)
• Smaller (1) Score: ______
TOTAL: ______
If your score is under 10 points, you should seriously consider moving, instead of remodeling. If you know you’re not going to own your current home for long and you live in a neighborhood where the property values are actually decreasing, any benefit from extensive remodeling of your home may be a waste of money.
Homeowners with scores between 10 to 17 points, can consider either moving or remodeling. In making your decision, take other factors— such as your current financial situation or job stability—into consideration.
A score of 18 or higher indicates that the potential benefits of remodeling your home, likely outweigh the cost. This is especially true if you are committed to your home's neighborhood or the property values of your particular area are stable or increasing.
So, does it make sense for you remodel? In our next installment we'll look at the difference between home remodeling and home repair. Even if you’ve decided to sell without remodeling, hold off for a bit before you call a real estate agent. Home repairs might not increase the value of your home, but maintenance left undone WILL take dollars out of your pocket at resale.
posted by Gator1969 @ 10:44 PM
