Should you renovate or is it just time to move out?

Thursday 21 Jun 2018

Starting to get restless in your current home? Thinking it's time for an upgrade but you're not sure if that means move or improve? We can help.

There comes a time in every homeowner's life when they have to ask themselves, "Do I renovate, or do I just move out?" It's a tricky question, especially if you know it isn't your forever home - it'll do for now, but it could do with some improvements. Or you could just move out entirely and not deal with it. Here's how you can decide.

Step 1: Assess your neighbourhood

First, consider the value of your location. If you're living in a neighbourhood in an area with the potential to grow into a bustling community, then it would be in your best interest to stay and renovate. This way, when it comes time to sell down the track, you'll have improved the value of your home, and you will be able to get more for it. Ask your local real estate agent if your neighbourhood is showing signs of an up and coming area.

Does it make more sense to move, or renovate your home?

Step 2: Consider the renovations

Some renovations are more valuable than others - they can add some serious value if you improve the correct areas. However, you will likely be wasting your money if you don't modernise the right part of your home. Here are some home improvements that will give you the most money back at resale:

  • Upgrading the kitchen
  • Updating the bathroom
  • Making the basement functional
  • Replacing carpeting with hardwood flooring
  • Creating an outdoor space / patio for entertainment
  • So, if you didn't find your project on this list you might want to consider finding a new place instead.

    Step 3: Be realistic about finances

    Get your home appraised to see how much you could realistically get for it.

    Will your budget allow you to move? Or would it make more sense to stay put for a couple of years and slowly work at the renovations bit by bit? If you're in a good neighbourhood and you like the community around you, it might be worth it to save up and make a budget for the move to a bigger place. If you choose to do it this way, set a rough date for when you'd like to move so you know how long you'll be saving for, and therefore, how much you'll need to put away.

    This is also a good time to get your home appraised to see how much you could realistically get for it, and if those renovations will be worth your effort. Then you can compare the cost of selling a house with buying a new house to see how far off you are from getting that new place.

    If you have any questions about whether now is a good time to sell, contact our team here at First National Real Estate Burnie. We're ready to help you!