Estimated read time: 5-6 minutes
Home prices are rising quickly, so many people are thinking about capitalizing on those home prices by selling and moving to a new home. On the other hand, there are several downsides to having to find a house right now. Therefore, it might be a good idea to remodel your home instead. What do you need to know about home remodels, and how can you put yourself in the best position possible to maximize the return on your investment? Learn more about the drawbacks of trying to move right now, and make sure you get the most out of your home remodel.
Moving is more expensive than you think
If you decide to move right now, there are a lot of extra expenses you might incur. Some of the most common expenses related to selling a house include:
- Real estate commissions: You will probably have to hire an agent who can help you get the most money possible for your home, but your agent will also take a significant percentage of the proceeds from the sale of your house, typical is 6% of the total sale price. For example, if house sells for $400k, that’s $24k in commissions.
- Moving expenses: You will also incur some moving expenses along the way. You might have to hire professional movers, rent a truck, and pay for storage during the process.
- Potential for two mortgages: If you do not perfectly time the sale of your house with the purchase of a new one, you could end up with two mortgage payments for a few months. This can be a major expense.
You do not need to sell your house to capitalize on its investment value. You may want to stay in your house, allow it to appreciate in value, and add to its value with a remodeling project. According to Neighborhoodscout.com, Utah homes have appreciated over 36% in past two years.
What to know about remodeling your home
It is a major decision to remodel your home, and you need to plan accordingly. Some of the most important factors you need to consider before you decide to remodel your home include:
- The value: What type of return could you generate from that remodeling project? Even though remodeling projects can be expensive, certain projects could increase the value of your home, giving you a return on your investment.
- Materials: You need to make sure you have access to the right materials. If you aren’t sure what type of materials you need, you may want to reach out to a contractor who can point you in the right direction. Make sure you can get the materials in a timely manner.
- The Value: What type of return could you generate from that remodeling project? Even though remodeling projects can be expensive, certain projects could increase the value of your home, giving you a return on your investment.
- Hire vs. DIY: Do you have the tools and expertise to do some or most of the remodel yourself? Or Should you hire a contractor? If you can DIY, you can save, but make sure you can do it, or you might end up hiring a contractor.
- Your personal preferences: Finally, you must think about what projects work best for you. What areas of your home do you spend the most time in? What would increase your quality of life? This should be the driving factor behind your remodeling decisions.
After you think about these questions, it is time to think about a few potential remodeling projects.
Ideas for remodeling projects
There are plenty of options if you are looking for ways to remodel your home.
You do not need to spend a tremendous amount of money if you want to remodel your home. For example, adding a fresh coat of paint to the rooms in your house can go a long way toward improving their appearance. You may even want to swap out a few appliances for new models with better features, energy-efficient features, or added durability.
You can even change a few of the windows in your house for energy-efficient ones to reduce your utility bills.
There are also major remodeling projects you can complete. If you need more space, you may want to build an addition to your home. You can add an extra bedroom, a home theater, or even a home gym.
If your old cabinets are looking a little dingy or you want more space, you can remodel your kitchen. Consider adding an island, opening up the kitchen and dining room, or creating room for new appliances. You can also add new cabinets or create more storage space.
A personal oasis you can call your bathroom is always a nice upgrade. You can add a walk-in shower, a whirlpool tub, and add more counter space. You can even upgrade the toilet with a fan or a heated seat.
Of course, if you have an unfinished basement, now is the time to finish it off. Completing your basement can add to the square footage of your house, increasing its value.
Consider remodeling your home instead of moving
These are just a few of the most important points you should keep in mind if you are thinking about remodeling your home. You might be able to complete some of these projects on your own, but this is a matter of personal preference. Once you feel like something is out of your comfort level, you should reach out to a professional contractor. Contractors tend to specialize in certain areas, so you should hire a contractor who is not only licensed and insured but also has experience with your specific type of project. A remodeling project can significantly increase the value of your home.