It may seem like a daunting task to sell your home rather than to renovate – the process looks tedious, and you and your family may have emotional attachments to your home. But there are a lot of pros that side with selling your home that you may not know or may not have considered.
According to Rob Caulfield, director of Archicentre, the building design and advisory service of the Australian Institute of Architects, renovating more than 50% of a home has to be made to comply with current building regulations. This could possibly mean getting new wiring, plumbing, and new energy rating – so basically a whole part of the house may need to be insulated and the cost can be quite hefty. Take note that you may also need to hire professionals and that a contingency fund for cost and time overruns are necessary. If you intend on financing renovation costs, use a mortgage calculator to determine just how much your existing mortgage and a renovation loan/ home equity loan or line of credit would cost versus a new home mortgage.
Based on a recent study, you will recoup only 64.4% of a remodeling project’s investment dollars if you do sell in the future. So if you do plan to sell, just prioritize the important parts of the home that need fixing such as the roof, the kitchen, and plumbing.
Another noteworthy benefit of selling and buying somewhere new is you can accommodate the current, and future, needs of your family without going through the mess of renovating.
Sure, renovation can be a good idea, too. But don’t dismiss the chances of you getting a better deal by selling your house instead. Talk it over with a professional baefore making your final decision.