• Do your family members outnumber your bedrooms?
  • Is your kitchen so dated it’s now considered retro?
  • Is your master suite anything but?

The reasons may vary but the result is the same. You and your home have reached the tipping point in your relationship. Your space no longer matches your needs.

It is time to take action.

The question remains, how do you determine what that action should be?

Takeaways:

  • When your home no longer fits your lifestyle it may be time for a change

  • Deciding whether to remodel your current home or move can be challenging

  • By carefully following a process, you can gain insight and find a path forward 


Step 1- The Airing of the Grievances

The first order of business in determining how best to proceed is to build a wish list of improvements. A good starting point is to take stock of your current home and where it may fall short. Include not only the items that are forcing the issue today, but even the issues you may have adapted to in the years you’ve lived there. Additionally, consider how your home may fit your circumstances 3-6 years down the road.  List all considerations and stack rank them, placing an asterisk next to two or three non-negotiables.

Step 2- Define Your Bottom Line

Next it is a good idea to get your arms around your budget. The first order of business is to understand the value of your current home.   A real estate professional knowledgeable in your area should be able to conduct a walkthrough and provide not only a potential listing price, but also a complete list of fees and expenses for a sale transaction. This will clearly spell out your total equity and net sale proceeds.

Related: Key Attributes to Look for in an Agent

Step 3- Price the Options

The easiest way to understand the cost of a potential new home is to spend some time searching through online property listings. Be sure to customize a fairly specific search that includes items from step one that you deemed crucial.

Since you are only researching the market, it will be valuable to search both active and recently sold homes to gain insight into pricing.  Once you have found a few that fit your needs, take those prices to an online mortgage calculator to determine your potential monthly payment.  Be sure to include changes to property tax and insurance premiums.

To estimate the cost of a renovation project, begin with an online calculator or remodeling magazine. These resources can provide information about both the average cost of work and the value it will add to your home. While these numbers will be approximate, they should prove directional enough to give you a high level understanding of potential costs.  Armed with this estimate, have a quick conversation with a banker or mortgage broker to understand your potential financing options, term and payments.

Step 4- Talk it Through

Following step #3 you likely have the metrics you need to make a choice, but metrics only tell half of the story. While the financial considerations are important, it is the emotional considerations that typically tip the scales.

Gather the family and have a frank discussion about both the positives and the negatives of each side of the equation.  Discuss in frank terms the impact moving or remodeling will have on your life.  Keep an open mind and carefully consider your options.  

The Bottom Line

Balancing the financial, logistic and emotional considerations related to a change in housing can be challenging and stressful. Taking a systematic approach can help greatly.

At Zachary Adams and Associates we know how stressful this decision can be. We’d love to be a resource to help minimize that stress and assist your family in finding a clear path forward. Whether that means showing you homes to help gauge the market, helping you build a custom search or assisting you in quantifying the costs and outcomes we have the experience to help.

A free home valuation is a great start.  Contact us today to get started.