Article by Canadian Home Find
For those who have had the experience of having to live in a home with dusty floors, outdated bathroom, leaky faucets, cramped bedrooms and messy kitchen, the decision to renovate is pretty simple. But is it really that simple? Is home renovation your only option when faced with this kind of situations in your home? Are you not considering trading up your current home to a new one?
There are actually several critical considerations that you have to take into account when the situation calls for a long overdue home renovation. The basic question that you have to answer is – Is it worth it? Here are some guide questions that you must answer when you are choosing between home renovating and moving to another home.
1. Have you grown to love the community?2. Is your home near schools and other public amenities?3. How long is your commute time between home and office or school?4. Is there available space for home renovation5. Do you have a sufficient equity in your home to justify the investment on home remodeling?
If your home is in a prime location, then you would have to struggle to come up with a decision. It is pretty obvious that you will go for home renovation if your home is located in a desirable neighborhood.
Good Timing and Prevailing Market Condition
A home renovation may not be a viable proposition when home prices are low. This means that your home renovation may not be paid off by the increment increase in the value of your home when prices are declining. Thus, your investment may not give you enough returns in terms of increased resale value. In which case, you may be better off selling the property and move for an upgrade if the opportunity presents itself.
Here are the things that you must do when planning a home renovation project:
1. Get an updated appraisal of your home in order to determine if it is worth investing on home remodeling.2. Check the prevailing prices of similar homes in your neighborhood, particularly those that have been in sold in the last five months.3. Determine the bottom sales figure so that you will have a conservative estimate of how much you stand to gain in terms of the resale value of your home. 4. Establish your project cost5. Determine how you will finance the home renovation project
You must get an appraisal before you begin with your home renovation project. If your home is already valued high in relation to the market, then the renovation project will not have much impact on its resale value. You will not be able to recover the cost of an expensive home renovation.
There are certain renovation projects that are self-liquidating. For instance, there are some projects that are good for 100 percent return while there are others that can return 75 percent. You can check out online valuation guides for home improvement so that you will be able to establish your priorities. However, you have to remember that the value of return is relevant if you are planning and are able to sell your home within 12 months of completing the home renovation.
If your equity is 20% or less, then it is wise for you to defer any home renovation project. If on the other hand, you do have a substantial equity in your home, then a major home renovation is a wise investment. During the preparation and planning, you have to decide whether you need to move out of your home while the remodeling project is ongoing. In which case, careful planning has to be undertaken, so that your regular daily routine don’t get disrupted by the home renovation project.
Related Upgrade Home Articles