By Caroline Abkar, Realtor | January 14th, 2020
Are you wondering if you should remodel your existing home or sell it and buy something new instead? I made this video to help you answer just whether you should remodel your home or move. It is chock full of all the information you need to consider when making this important decision.
There is so much that goes into the thought process of figuring out the right answer for you when it comes to remodeling vs moving. You need to first have all this data in hand with the help of your Realtor and lender:
- Remodel bid(s)
- Current loan balance on your home
- Fair market value of your home (appraisal or comps analysis from your realtor).
- How much savings you would put toward your remodel/new home
- What options do you have for a remodel loan including qualifying amounts (cash out refi, rehab loan, HELOC, etc)
- What you qualify for, for a new home.
- Net sheets if selling and buying.
Once you have all this information, you will need to determine what it would cost to buy a comparable home to your remodeled home in its future state. In other words, you are now going to figure out if you can get a turnkey home that you will love just as much as your remodeled home, without having to go thru the remodel, which for many people is an extremely stressful event.
Here are a set of tips and questions to think about for this step:
- Use your remodel specs (To-Be) as search criteria for a new home
- Review list of homes for sale or have sold that meet that criteria
- What is likelihood you will find a home like your To-be that is all done that you love?
- Do you love your current location?
- What is the after remodel value of your future home (ARV)? Don’t overbuild.
- Where will you stay during remodel?
- Impact on quality of life during remodel
- Include a $ buffer for unknowns during remodel
Hopefully all this data crunching and analysis will give you a good idea of an apples to apples comparison in order to determine if you should remodel, or move!
About the author: Caroline Abkar is an established San Diego Realtor and Bay Park resident who is absolutely passionate about the community as well as representing her clients in selling and acquiring the biggest investment of their lives. She will go above and beyond for those who place their trust in her. You can contact her anytime at 619-808-4804.