As home prices increase, homeowners are finding new options available to them. Many have regained the equity they’d lost over the last several years and this creates an opportunity to remodel or sell. For those still sitting on the fence, we’re offering some tips to help make that all-important decision.
A basic starting point is to realize that while financial aspects of this decision must be carefully weighed, the choice is about far more than what shows up on a spreadsheet. A great deal depends on the personalities, desires, and emotional investment of the homeowners.
Some people love their neighborhood, their landscaping, and their school district. They aren’t entirely happy with their home’s layout or size, but despite the potential chaos, they are willing to make significant changes through remodeling or adding on.
Other people do not love their location. They don’t especially like the house they are in and want real changes without the chaos of remodeling. Maybe a brand-new home in an eco-savvy development appeals to them, or they want a substantial change in the size of their home—either larger or small.
Love it
For many people who like their location including their neighborhood, their neighbors, and the schools if they have children, it’s an easy choice to stay. There are distinct benefits in knowing who’s next door and which young person will mow a lawn, baby-sit, or water the plants when you’re out of town. In addition, there’s a welcome continuity in enjoying a home you’ve lived in over the years and the yard where the saplings you planted are now providing significant shade.
It may be, however, that the house has become outdated. Especially if it is one of the smaller dwellings in a neighborhood, adding on or upgrading can make a lot of sense. In that case, this might be a great time for remodel. Some people make significant upgrades to create an up-to-date kitchen or a luxurious, but eco-savvy bathroom. Others finally add a garage or screened porch.
“Do you love your location?” asks REALTOR® Bill May, owner of Bill May Realty Company. “If so, from that point on, it’s easy to decide. What we’re seeing now is that people aren’t as interested in moving. Location is everything and if you have a good one, you will add on all day long.”
In point of fact, that’s exactly what May and his wife did. “We have a great view,” he reports enthusiastically. “That view kept us there and we added on—actually doubled the size of the house. We wanted a place for friends and children to stay and we had the location we wanted.”
“A lot of people are invested in their community and so they stay,” chimes in Todd McGee, a REALTOR® with Nest Realty. “We’re seeing that when people love the area and amenities and schools, they may move within the neighborhood. They may trade up or they trade down on the size of the house depending on their stage of life. Or they stay in the same house and upgrade to today’s trends and make energy efficient improvements to the house.”
McGee cautions that it is very important to weigh the cost of any improvement against the added value. “Is it worth it to add a mud room when you may not get dollar for dollar out of the improvement?” he asks. “Be especially cautious about eliminating a bedroom.”
On the other hand, he continues, certain improvements consistently add value such as kitchen upgrades. Particularly popular these days when it comes to remodeling, the kitchen is again becoming the center of the home for family and entertaining alike. In fact, homeowners may move or eliminate interior walls to enlarge the kitchen so it blends seamlessly with larger living areas.
Still, McGee says, you don’t have to do manor structural projects. “Things that you see good return in kitchens include new flooring, countertops, and appliances. Refacing cabinets is a good option, and a lot less expensive than replacing them entirely.”
Bathrooms are also good candidates for remodeling. “People really love bathroom upgrades,” McGee continues. “Taller vanities are very popular and a lot of showers that were those fiberglass prefab units are being replaced with tile and frameless glass doors. Some people are taking out oversize spa tubs and putting in a large walk-in shower or a separate little ‘water closet’ room.”
Another popular option is to remodel a multi-level home to create a ground-floor bedroom suite with a luxurious bath, especially if children are heading out on their own and the owners are contemplating eventual retirement right where they are. “When homeowners are looking ahead and thinking about ‘aging in place,’ one of the first things they want is a first-floor master suite,” verifies REALTOR® Sue Raupp of Montague Miller and Company Realtor.
She points out that remodeling also gives an opportunity to increase safety and accessibility for older residents or persons with disabilities. Important amenities include secure handrails for stairs, good lighting, grab rails for bathrooms and toilets, high-visibility slip-resistant edging for outside steps or even no-step entries, wider hallways to potentially accommodate a wheelchair, door handles that are levers rather than knobs, and roll-in showers. Even if these features aren’t needed now, they may increase the livability of the home in the future and the marketability of the home at any time.
Some people clearly enjoy the prospect of remodeling, combing the Internet for inspiration for floor plans, color schemes, and how to create a mini-office from a walk-in closet or a powder room from the storage space under the stairs. For them, the whole process is an adventure rather than an inconvenience. They don’t mind living with missing walls, cooking on a hot plate in the living room, or the whole family using a single bathroom and shower for a month.
In addition, much remodeling can be done in steps and this mean a more gradual cash outlay. For people who don’t mind living in a less-than-finished way for a period of time, this can be part of the excitement of changing a house to be exactly what you want.
Another important aspect of major renovations is that they probably require building permits and adherence to zoning regulations. In some neighborhoods, remodellers will need an OK from a homeowners association, or even approval from neighbors. Then too, there may be unexpected structural considerations or costs. It’s always wise to obtain several written estimates from any contractors or suppliers you are considering.
Another important factor is the age of the house. An older home may require unexpected and expensive updates of electrical and plumbing systems once work starts. On the other hand, incorporating modern “green” technology may result in lower month-to-month utility energy costs.
Finally, before considering major remodeling it’s important to ask some yourself some questions, warns McGee of Nest Realty. “If you are considering investing a lot of money, how long will you be there? Are your planned improvements consistent with other homes in area?” He says an experienced real estate professional can offer guidance about housing trends in your area.
List it
Moving to a new home can be an expensive, time-consuming proposition that can also involve new schools, a new commute, and finding a new grocery store, doctor, and hairstylist.
Nevertheless, some people are definitely motivated to move—not just the ones leaving town. In some cases, people simply don’t like their present neighborhood. Other reasons can be that their family has grown with the addition of children or an older relative. Or the kids are grown and gone. Some people are seeking a bigger house. A smaller bungalow. A single-story home. A condo in town. A place in the country. A retirement community. A better school district. A shorter commute.
Interestingly some people sell one house and buy another in the general area. May of Bill May Realty Company calls this moving for an “architectural” reason. In other words, the house itself just isn’t right any more. “Maybe the kids have left home or you are single,” he says. “I see people moving to a bigger house or a smaller house.”
He adds there is a growing trend toward condominium living where you can walk to places you want to go. “Look at downtown Charlottesville,” he says. “They wouldn’t be building all those condos if they weren’t selling.”
Another reason to simply buy a different home rather than doing major remodeling would be the likelihood of a move in the next few years. Non-structural upgrades such as kitchen counters and appliances or bathroom fixtures may be an excellent idea when preparing to put a house on the market, but recouping the investment of major rearrangement of the home’s interior generally takes a number of years.
Still others decide they want major changes in the way they are living, but simply cannot face remodeling problems such as doing the dishes in the laundry while the kitchen is being overhauled or having to take bird baths for weeks while the bathroom is being realigned, retiled, and re-plumbed.
Another argument against remodeling is “over improving.” This occurs when the house is already one of the larger and more expensive ones in the neighborhood. It may not be smart financially to make it even more valuable in relation to its neighbors.
Then, of course, there’s the dust, the noise, the mess, and the disruption of strangers in the house when the homeowners want to relax. In some cases, remodeling isn’t practical because of the layout of the existing house, the size of the property, or local zoning regulations.
Granted, house hunting and selling a house can be stressful, but sometimes house-shoppers find a place that is perfect for them and can move in and start enjoying it right away with the finances clearly spelled out.
For these many reasons, the decision to sell is pretty easy. The homeowners just have to prepare to put their home on the market. (And that’s a whole ‘nother article.)
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Marilyn Pribus and her husband love their location in Albemarle County near Charlottesville. They have added a screened porch and recently replaced kitchen countertops, sink, and aging appliances.