Home improvement, remodeling and repair v moving house
Many clients ask me whether they shouldn't just move to a new house rather than go through all the hassle of remodeling, home improvement of home repair. After all, a construction site can be pretty chaotic, noisy and messy. Why put up with that when you could just buy something that does the job you want which is already complete? The problem with that is that it's often very difficult to find something that is just perfect and you end up either making compromises with your wants list, or you are faced with home improvement or remodeling at your new home! Kind of defeats the purpose of moving right? Here are some questions I ask my clients to get them thinking about the total picture. Of course, this is after I get a general feeling for what they want to achieve and I have assessed the physical possibility of actually completing the project.
Do you like your current neighborhood?
Sometimes the answer is "No!" in which case, I politely suggest they SHOULD be thinking about moving rather than having me look at a house remodel. Overwhelmingly though, the answer is "Yes!" Here's positive reason number 1 for staying put. I talk with them why they like it and get varied answers. Nice neighbors, amenities close by, good access to transport, great schools for the kids. All these things are good reasons to try and turn that sow's ear into a silk purse!
Have you looked at houses for sale that have what you need?
The reason for this question is to get them thinking what sort of extra money they will need to be putting into a new home to try and buy what they want (often which is, as mentioned above, not totally all they want anyway). Many clients haven't done this so I always suggest they look on the Internet at some local realtors' sites to get a feel for what's out there and what vendors are hoping to get.
Have you factored in moving costs into the equation?
For those who have looked at homes and have some idea what it would cost them to upgrade and move, most have forgotten the hidden costs of moving. It just isn't the bottom line on your mortgage statement every month. Most have forgotten to factor in an average of 6% for realtor fees, a number of thousand dollars for closing costs, moving costs, and the disruption and time to actually move. If you sell your home for $200,000 and buy one for $350,00, your realtor fees alone can be around $16,500. That buys an awful lot of remodeling work! Add on moving and closing costs, and you can easily be at $20k!
These are my main 3 questions, or some variation of them, and they serve as a good basis for getting meaningful thinking and conversation happening. In my 15 years plus of designing, I've rarely seen a situation where a client could upgrade to get everything they really wanted. Less so everything they really wanted without spending $40-50,000 more. PLUS add on realtor fees, closing costs and moving costs. It rounds out to $60-70,000. That is going to buy you a good sized remodel or home improvement, without the drama of trying to sell, and the inconvenience of having to move. Yes, I agree, there WILL be some inconvenience while walls, floors and/or roofs are ripped apart, but these are generally less than the whole selling and moving scenario.
In summary, think hard before committing to moving to try and upscale. The first question is one that will probably need to be answered by someone skilled in design and planning. Can it be done? If yes, the next is, are we happy here and would we like to stay if we could? Some clients ask me about over-capitalization. This can be an issue if you are seriously over-capitalized (which is easy to do today with the slump in house prices). However, prices are very likely to rise, so being over-capitalized somewhat isn't such an issue as the reason for it is making the house more useful, so you will be staying in it. However, figure on sticking around to try and recoup your deficit, rather than trying to turn it over quickly.
To discuss how to remodel your home the right way, and navigate the pitfalls, please give us a call today, or drop us an email.
