As we move into the spring season, you can expect the real estate market to seriously heat up. You may be thinking about cashing in on higher house values that much of the market is experiencing. Keep in mind that you will almost certainly have to pay the same appreciated value for another home. Additionally, there are other costs associated with moving that you wouldn't encounter if you stay in place and renovate your current home. These costs include closing costs for another place, a real estate commission to sell your current home, and the costs to move. There will almost certainly be other costs associated with selling and buying another place.
Considerations of Renovating or Selling
Everyone's circumstances are different but there are some generalities that apply to most people trying to decide if renovating and staying put is the best option or if selling and moving on is a better option.
Renovate and stay if:
- You love your current home but it has flaws and needs updates.
- As mentioned above, there are additional costs associated with selling and moving. Another is that you have likely worked off several years of your mortgage. Buying another home will almost certainly mean starting all over with a new 30-year mortgage.
- You're living at your ideal location. There are changes to the house that you can make but you can't do much about the location. If you're in your ideal location, stay put and make changes to the home instead.
Sell and Move if:
- Your family size or needs have changed. During the life cycle, family sizes both grow and contract. If yours has grown, you may be able to renovate with an addition to stay where you are. If your family size has declined, you're probably better selling and downsizing.
- The house and neighborhood no longer fit your needs. You may have bought as a single person and now have a family. The neighborhood may not be an appropriate place to raise your family.
- Renovating isn't practical or possible. There maybe things you want or need that aren't possible or practical by renovating your existing home.
Consider your specific circumstances before making a decision to renovate and stay or to sell and move on.
Best Times to Purchase When Renovating
If you decide to renovate and stay, you can spread the costs out and save money (line of credit or personal savings) by following this purchase schedule. Most of these are off season purchases. However, many are also seasonal purchases.
January
- Air conditioners
- New flooring and carpeting
- Furniture
- Gas grills
- Linens and bedding
February
- Home entertainment centers
- Other electronics
- Outdoor furniture
- Indoor furniture
- Bathroom and kitchen fixtures and cabinetry
March
- Flowering plants and bulbs
- Outdoor furniture
- Small appliances
April
- Television and other electronics
- Cookware and kitchen accessories
- Vacuum cleaners
- Lawn mowers
May
- Refrigerator
- Mattresses
- Outdoor gear
- Lawn mowers
- Small appliances
June
- Dishwasher
- Outdoor gear
- Lawn mower
- Small appliances
June
- Dishware
- Tools
- Indoor furniture
- Small appliances
July
- Furniture
- Home décor
- Tools
- Outdoor furniture
August
- Linens
- Storage containers
- Computers
- Air conditioners
- Dehumidifiers
- Snow blowers
- Outdoor furniture
September
- Appliances
- Lawn mower
- Shrubs, trees, and perennials
- Snow blowers
- Small appliances and electronics
October
- Appliances
- Patio and other outdoor furniture
- Cookware and kitchen accessories
- Gas grills and air conditioners
- Plants
November
- Appliances
- Televisions and other electronics
- Tools
- Gas grills
December
- Pools
- Television and other electronics
- Tools
- Gas grills
- Large and small home appliances
Please leave a comment if this article was helpful or if you have a question.
Author bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for ten years. He also draws upon 37 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest. In the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.
Brian Kline has been investing in real estate for more than 30 years and writing about real estate investing for seven years with articles listed on Yahoo Finance, Benzinga, and uRBN. Brian is a regular contributor at Realty Biz News
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