The number of new homes sold is one indicator of the health of the economy, and currently, there is something of a housing market slump. Here are some factors homeowners should take into consideration when deciding whether to renovate or to sell.
1. Look at your long-term plans. Are you planning to live in this home for some time? If it’s getting tight for your expanding brood, take that into consideration. If the goal is eventually to sell your home, consider improvements that will add value. Customizing your home to your specific personal tastes may turn off a potential buyer, since it will be hard for them to envision themselves in the home.
2. How is the neighborhood and how is the school system? If the crime rate is high, or if there are many foreclosed homes in the area, property values will be affected. And the educational system is critical, even for those without children. Good schools attract new buyers and help to grow the community.
3. How much equity do you have in your home and how much do you owe on your mortgage? If you owe more than your home is worth, then it may be best to wait out the market and renovate. Your house will be worth more after you make improvements, and hopefully the housing market will be on the upswing as well.
4. Although it is an added expense, it’s a good idea to get your own home inspected. This will help you to determine what is in need of repair in your home. If you’ve got an older home, you may find issues with the plumbing or wiring, and basements may have mold from leakage. Word to the wise is to leave such matters to licensed professionals.
5. In terms of your budget, determine how much you can reasonably spend on renovations. You may have to do some of the work yourself unless there is enough money in the bank to hire professionals. Be careful not to overdo it with renovations; if you decide to sell one day, you may not recoup what you invest.
All told, even if you decide not to sell your home at this point, you can still make changes within your budget to improve it. It’s your home, so you may as well make it your own little castle.