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Relocate or Renovate?
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By Timothy K. Clark
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Should I stay or should I go? Inevitably, most homeowners areforced to ask this question at some point in time. The decisionto sell their house and move away or to stay in their home andremodel can be very tough indeed. Many factors certainlyinfluence whether you decide to move or whether you stay andremodel your home.
MOVE OR REMODEL?
Location, location, location. It's usually the mantra of realestate agents, but it applies here as well. Where your home islocated is usually the most important factor because a homeimprovement project will never change the location of yourhouse. You may be forced to undertake a move because of externalforces you cannot change, such as:
* You may not like the quality of your local school system.
* You may not have many local options for shopping or lifestylechoices.
* The size of your current lot or piece of land may not handlean increase in size or expansion.
* A neighborhood association may prevent additions or expansionsbecause it changes the look of the area or subdivision.
* Legal or zoning restrictions in your city might prevent anychanges.
* Your subdivision may only have identical housing plans("cookie-cutter houses") and adding a second story or homeaddition could make it less valuable than the others in theneighborhood.
* It may cost too much to renovate.
Because you cannot change these factors, you and your family mayfind that a move to a new location is absolutely necessary. Takea look at your home location and decide if it meets your needs,if it can be improved, whether or not it is too old, and whetheror not you can deal with the stress of a remodeling project.
TOO MUCH OF A GOOD THING?
Another factor in your "relocate or renovate" decision could bethat your house is already the nicest in the area. An extensiverenovation or improvement of the best house in the neighborhoodmight be fine if you're planning on living there for anextremely long period of time. However, if you have plans ofselling in the future, such a renovation might prevent you fromgetting a decent return on your investment. If your house isalready the nicest, spending more on it won't make the value goup even higher.
TAKING THE PLUNGE?
If you've decided to stay put, you may have made the bestchoice. If you ask people to list the costs involved withmoving, most will only talk about the price for a moving companyto come pick up their furniture. It can actually cost more tomove than to take on certain remodeling work. There are costsassociated with selling your house, buying a new house (realtorfees, closing costs), cleaning services, transporting yourfamily (hotels, meals, gas), repairs and renovations needed tosell the old house, and many, many more.
If you're going to renovate, keep these tips in mind to makesure your home improvement projects will go a lot smoother:
o Decide whether you're improving your home for you or for afuture sale - If you want to remodel your bathroom or paint yourinterior walls, the choices you make can affect the value ofyour home. You might love the color red or a modern sink designin your master bath. However, home buyers are not always fond ofexotic designs and it may do more harm than good when you'reready to sell your home.
o Decide whether you'll move out during construction - You andyour family may not be able to deal with the noise, debris,dust, and extra workers in your home. You might need totemporarily relocate to a hotel, apartment, or house. However,it might be a good idea to stay. Some like to be close to theaction and be able to oversee the work being done. It's alsoimportant for someone to be there to receive deliveries. If youstay, it's important to make sure you ask workers clean up atthe end of each and every day. Make arrangements to replace theroom being worked on (for example, set up your kitchenappliances in a spare bedroom during a kitchen remodel.)
o Arrange for sufficient financing to be able to cope during anyproject - There could be many hidden costs in a home improvementproject, so it's good to budget for surprises. Plan for problemsthat a contractor might discover during the renovation. Plan forextra time (which increases your budget), beyond your projectedcompletion date. Plan for changes you might decide on, too - itmight look good on paper, but you could change your mind duringthe remodeling job and those changes cost extra. Think aboutadding at least 15% to 25% to your expected budget... foremergencies. Consider the little things, as well - other hiddencosts could include: ordering more takeout food during a kitchenremodel, paying for coin laundry services when your water isshut off for extended periods, or even hotel stays during heavyconstruction.
o Plan to do it all-at-once or project-by-project - Manyhomeowners decide to remodel a kitchen and, while that job isunderway, will then decide to add on a bathroom renovation. Thiscan cause delays and extra expense. While it's true that thereare already construction workers on the job site, it takescareful planning to arrange for permits, materials, designs, andthe subcontractors' schedules to complete a project on time andon budget. It's best to plan for your kitchen remodel, bathroomremodel, and new patio installation to happen all at once or youshould plan for them to take place individually, over a periodof time. It will cut down on cost overruns, delays, andheadaches.
MAKE IT HAPPEN
As the real estate market continues to slow down, and in someareas drop dramatically, it is an important time to considerstaying put and remodeling your home. Housing prices maycontinue to level out so one sure way to improve property valueis a proper renovation. Consult a designer or architect in yourarea to determine which changes will be best for your home inyour neighborhood.
If you're planning to stay in your current house for a longperiod of time, make sure that any renovations you do are trulyfor you. It's your home and you've got to live in it and becomfortable. Whether you convert your basement into a recreationroom or you want a spa tub installed in your master bathroom, gowith the products and designs that work with your lifestyle. Ifyour tastes are more exotic, you can always remodel or renovateagain when you're ready to sell.
If you plan and finance your renovation appropriately, youshould be able to "make over" your home to suit your needs withlittle or no problems. To find a reliable contractor you can usea referral service, like ConstructionDeal.com, because they canbe a great resource for finding a local pre-screened expert tohelp make your renovation dreams a reality.
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