Talk about articles that have aged remarkably well; in this 2018 article by Zillow, they said that an astonishing 76% of Americans would instead make improvements to their home than put a down payment on a new home.
As Americans, we love our homes, and we take great pride in creating showpiece living spaces that can accommodate our families and our dreams. We’re also some of the most hospitable people on the planet, so our homes become our friend’s homes too and vice versa. So deciding to move is no easy one to make. The emotional bonds that we form with our homes and in our living spaces are intense, and over time, our homes become the primary source of wealth creation in the United States and, ultimately, how wealth is transferred through legacy.
Clearly, it’s not as easy a decision as one might have thought. So, let’s break down the top reasons why you should stay and the top why you should go.
ET’S START WITH RENOVATING/REMODELLING
Most people decide on renovating because their needs have changed. Either they’re pregnant, or they’re about to become empty nesters, or they simply want extra functional space. But the natural beauty of remodeling is that it’s all yours. Anybody but you created nothing about that space, which instantly adds an “ownership” appeal to your home overall. Even just renovating your basement can add a new and exciting space to your home, so think out of the box too.
MONEY, MATTERS
Never a more faithful word spoken in today’s climate. Money does matter, and while we’d all like to think that our homes values have increased 100 fold since we first acquired them, that’s probably not going to be the case, and if you’re in the Elon Musk league – well, that’s not really your problem now, is it?
So before you think of selling, dust off the old calculator and start doing the math. At this point, getting your realtor involved to evaluate your home is probably not the worst idea, as this will give you a relatively reasonably accurate picture of how much equity you have in your own, assuming you don’t own your home outright.
Once you know what equity you have (if any), it’s time to speak to your banker to see what lines of credit you might have access to; now, these are not to buy a home (at least not yet) these lines of credit are specifically for home improvement.
AND HERE’S WHY
Once you know how much money you either have access to through credit versus how much of the equity you could unlock that’s already in your home, you can take the one amount over the other, figure out the interest you’re going to be paying over a certain period in either case and voilà! The cheapest option is the one you’re after.
NOW THAT YOU KNOW
Once you’ve figured all of that out – and watch those interest payments, by the way, and whatever you do, do NOT fall for the “X%” down now and the rest later business, you will 100% regret making that decision.
What you have, is what you have. Now that you know what that is, you can start dreaming about the space you’re after, don’t be tempted to spend more than you can afford by restructuring home loan agreements; the time will come when you can spend a little more and remember, whatever improvements you make on your home now, will add instant equity to its overall value.
Remember, those seemingly minor ideas can have the most significant impacts on your home, consider a dramatic front door like Provia entry doors or new shutters. What about redoing your garden and outdoor spaces?
OK, YOU’VE DONE THE NUMBERS, AND IT’S TIME TO GO
When it’s time, it’s time, and as they say, change is as good as a holiday! Also, there are few things as exciting as changing your zip code – and few things as stressful. Nowhere is the adage that failing to plan is planning to fail, mainly when many online resources help you out.
Sidebar: it can be very tempting to want to move home when your family has been through something traumatic, and sometimes this can be a good thing but think twice about it, especially if you have younger children because of times of grief or trauma, the familiar can be healing. But, on the other hand – new surroundings mean new beginnings too.
NOT ALL REALTORS ARE CREATED EQUAL
Remember “that” crash? While it wasn’t necessarily all the fault of overzealous real estate agents, many of them took advantage of a system that was ultimately going to plunge the United States into chaos, so that means – do your homework. Better yet, if you have a friend or family member who can refer you to someone they’ve used and with whom they were delighted. I heard a saying once: The best realtors are more concerned about your wallet than their own.
Don’t be fooled by the agent that “guarantees” a payout of “x.” amount, that sort of promise simply cannot be made, and it’s a fool’s game to think that it can. You should hardly have to do any paperwork at all; your realtor should take care of most of that for you; think about that when they’re trying to justify their commission.
THE THINGS YOU DON’T KNOW
We found this brilliant guide from “House Beautiful” that will make moving home a breeze for you because there’s so much that we think we know, and then there are all those things that we don’t know, and that’s what gets us.
IN THE END, YOU’LL MAKE THE RIGHT DECISION
If you take the approach that what will be, then whatever you do is the right thing, even if it isn’t. Upgrading or remodeling your current space makes it your own, but on the other hand, moving into a new home that already has what you’re looking for takes all the stress out of renovating.
Whatever you end up doing, involve your whole family in the decision; after all, it’s their home too.