Jan 27 2023

Should you sell or renovate your house?

sell my house

Today, many homeowners are asking: Should I sell my house? Or should I stay put and renovate?

Have you realized that your house is not quite right? It might be too much space or not enough. Or perhaps it’s peeling paint and aging features. For homeowners in this position, there are usually two roads to take: You can sell your home and move up or downsize, or you can renovate.

Should I remodel or sell my house? 6 deciding factors

sell my house

Answering these questions can help you narrow down which choice to make:

1. Does your house still meet your needs?

Even if you’ve always liked your home, you might not appreciate your commute, your neighborhood, or your location. Maybe you’d like to live closer to extended family or move to a new community without the added expense of an HOA.

Other circumstances can also lead you to outgrow your current home, like having children, getting new pets, or transitioning to remote work. If you need more room to accommodate these life changes, you aren’t the only one. A recent American Institute of Architects Home Design Trends Survey showed that larger homes are still in demand—especially those with flexible work-from-home spaces, like finished basements.

2. Will moving disrupt your life?

Let’s say there’s nothing tying you to your current home. Maybe your kids are grown, and you want to exchange the big house for a smaller one. Alternately, you might be considering modernizing your house with a kitchen upgrade or smart home features.

Which one is right for you? In this example, a move isn’t likely to negatively impact your life. In fact, you might stand to gain from downsizing and consolidating your monthly expenses. However, if your home has sentimental value—such as being the house your kids grew up in—then renovating may be worth the investment.

3. Can you afford to renovate?

What changes does your home need for you to feel satisfied or get your needs met, and how much will those cost?

  • To answer this, it’s a good idea to write a list of your “wants” and then gather quotes from local contractors.
  • You can also price the average cost of renovations online, though contacting a contractor will provide you with the most accurate numbers.

Over the past few years, homeowners have acquired large amounts of equity. Depending on what you’d like to upgrade, a cash-out refinance could be used to fund some or all of the renovations. Your home equity could also help to fund your move into a new house. The idea is to determine your desires and count the costs.

Contact your local Academy Loan Officer to find out if selling or renovating makes more sense for your unique situation.

4. Do you have the patience to renovate?

A major factor to consider when looking at renovations is the time it takes. When requesting price quotes from contractors, make sure to also request time estimates for each project. It’s possible that you could be out of a kitchen for several months during renovations. Are you prepared to spend these months ordering takeout or cooking meals in a microwave?

The time estimates you receive may also inform which contractor you pick.

5. Will you be over-renovating?

If you’re renovating to bring your home up to the same standard as other houses on your block, then you’re probably in good shape. But if your reno plans will cause your home to far exceed those in your neighborhood, your dollars aren’t likely to be well-spent. Instead of adding extra rooms to a small home surrounded by similar houses, consider moving into a larger home that has what you’re looking for.

6. Could little changes make a big difference?

It might be worth doing what you can to revive your home before committing to a major move or upgrade. Repainting walls, rearranging furniture, buying new artwork, replacing dark curtains with light window treatments, and installing a new garage door are all inexpensive ways to give your home a facelift. Once these changes are made, you can better assess whether it’s time to move—or if larger renovations are needed.

🔔 You might also be asking: Should I renovate before I sell my house? The answer is: It depends, both on your local market and the repairs in question. While overall housing inventory is still limited, many more listings are available than there were last year. And so, buyers may no longer let repairs slide since they get to be choosier.

If you’re hoping to sell at an optimal price, ask your real estate agent which repairs are deal-breakers, if any, and tackle those before listing.

Expert guidance can make big decisions easier

If you’re wondering whether you should sell or renovate, reach out to your local Academy Loan Officer.

The information shared is for general informational purposes only. The information provided does not constitute a suggestion or advice. Academy Mortgage makes no representation or warranty, express or implied. MAC1223-1484649.