Sometimes you are just unhappy with your current living situation and you need a change. Perhaps the home you are living in is too small, in the wrong neighborhood, or just doesn’t have the amenities that you want. If that is the case, you need to ask yourself if you should sell your current home, or just have it remodeled to something that fits your needs.

When remodeling a home your must consider the time it will take to complete the home. Sometimes there’s a minimum amount of projects to be done and a home can be ready within a week. However sometimes a home needs a floor to roof remodel and if that’s the case the house could take months to complete. A person must consider that if they’re going to remodel their home certain parts of the home will no longer be functional while being remodeled. If the project is remodeling almost the whole home, than the home itself may not be livable. If you’re remodeling it is good to have family, friends, or neighbors to stay with.

Age old question: Should you sell or remodel your home?

Some Considerations For Selling Versus Remodeling

Factor #1 – Time

If you’re considering moving you have to take into account how long it will take to find a new home that suits your needs, as well as sell your current house. This process will likely take more time that you think and some home seller’s won’t take a contingent offer based on you selling your old home. If this is the case it might limit your options. The issue of time shouldn’t be understated.

Factor #2 – Money

Sometimes remodeling a home can cost a lot less than moving. Projects can cost anywhere from a few hundred dollars to thousands upon thousands of dollars. Keep in mind that remodeling a home can also be seen as an investment, often increasing the properties value. You will also want to factor in the amount of money it will take for moving costs, downpayment, and other costs. Once you put pen to paper you might just find that creating the home of your dreams costs a lot less when remodeling versus buying a new home.

Factor #3 – Location

Obviously if you’re looking to move to a different part of the State, a different State altogether, or even a different country, you’re going to have to sell your current home because a renovation won’t work for your situation. However, if you like the neighborhood your current home is in, it might be easier just to remodel the place you have.

Someone who should be looking to remodel is someone that can both afford the time and money involved in building your dream home. Many times people like to add space to kitchens, bedrooms, or bathrooms, by knocking down walls and getting use out of spaces that they don’t currently use. If you have to move to a new area, or need more space including bathrooms, bedrooms, and kitchen space, or don’t have the upfront payment for remodeling, than you should be looking into buying a new home.

Selecting a contractor for your home remodel

How To Select A Contractor for Home Remodeling

If you decide that after considering time, money and location that a home remodel is your best choice, then you will want to understand how to find a good contractor. I’m sure you have heard some of the horror stories about homeowner’s getting involved with a criminal contractor and the bad things that can happen. You will want to educate yourself to ensure that this doesn’t happen to you.

Before you begin your home remodeling journey, think carefully about exactly what projects you want to do to your home. Will the remodeling and upgrades increase the value of your home and give you the living space you desire? If the answer is yes, then you will want to carefully go through the steps to find a contractor to complete your remodel.

The task of selecting a contractor for the remodeling work can be overwhelming. The contractor you select will be with you during the entire remodeling process. You want make certain you’ve chosen the best contractor with whom you are going to trust with your home and your money. So how do you even begin the process to choose a contractor?

First, ask relatives, friends or co-workers if they have used a contractor in the past. Ask them if they were satisfied with the workmanship, timeliness of completing the job, and price. Another good idea is ask your homeowners insurance agent if they have a list of contractors that the insurance company endorses, recommends, or uses for repair work for claims. Think about it, if an insurance company uses a specific contractor they probably do good work at a reasonable cost.

Once you have the names of several contractors with good recommendations, check out those individuals or their companies with the Better Business Bureau. While no contractor can ever totally please the public, a contractor or a company with a high volume of complaints should definitely be a red flag. Some States have licensing boards or other governmental agencies which regulate or bonds contractors. Check the names of contractors on your list to see if they are in compliance and that there there records are clean.

Next ask the potential contractors for a list of references and then be sure to follow up and actually check them! Ask the former clients about the workmanship performed, if the work was done in a reasonable time frame and if the project came in at or over budget. Ask the potential contractors if they provide architectural services as well as construction. Also ask if they will obtain all the necessary building permits that will be needed for the project. It is important that the contractor have a thorough knowledge and recent experience working with local codes and ordinances.

After you have shortened your list of contractors to three or four, set up meetings and arrange to have bids submitted. Most bids should be in the same general price range. A bid that is much higher or much lower than the other bids should be scrutinized closely. Check the quality of the materials the contractor intends to use as well. Using very low quality building materials can greatly decrease the bid, but the workmanship may not last as long as a project completed with quality materials.

Once you have chosen a contractor, it is very important to go over the contract thoroughly. The contract should clearly state what services the contractor will provide, the specific materials that will be used, the projected start and completion dates, as well as the pricing. The contract should also outline any warranties which will be provided. Finally, once you have a contractor selected, make sure you check that they are properly insured and have adequate liability as well as workers’ compensation insurance coverages in place.

Selling your home after considering a remodel

If You Decide To Sell Instead of Remodel

Sometimes a home remodel just isn’t in the cards. Perhaps it was your first choice, but after going through the steps above to find a contractor you decide that it just won’t work. If that is the case, you will need to sell your home. What steps do you need to make to sell your home?

Whether it’s new or old, small or large, selling a home is possible for everyone and can truly be a non-stressful and easy process when you take the correct steps. Selling a home can oftentimes seem complicated, but there are many ways in which you can receive help and guidance along the way. Here are the steps you will want to take in order to sell your home:

Step 1 – Clean out your home:
Before you sell your home, you must clean it out. This may seem like a small step, but it is very important. Before you get a real estate agent to give you a value on your home, it’s important to make it looks as presentable as possible because it will sell for more.

Step 2 – Have the property appraised:
Selling a home does not mean you can set it up for a high price and sell it. It’s more complicated then that, and that’s where property evaluation comes into play. Have a real estate professional thoroughly evaluate your home. They will tell you how much it is currently worth and explain to you what price is realistic for you to sell it at. The real estate agent will give you a list of the “comps” in your area which is the comparable homes and they prices at which they recently sold.

Step 3 – Have your home inspected:
It’s a good idea to have your home inspected before you put it on the market because there may be many things that need repaired. Selling a home with issues  (i.e. plumbing, lighting, etc.) can cause you problems in the future. If these defective items aren’t disclosed to the new buyer you could be liable for them in the future. The home inspection will alleviate some of these issues or liabilities.

Step 4 – Market your home:
It’s always a good idea to have a for sale sign by your home, but there’s many other ways you can advertise your home as well. Your real estate agent will likely advertise online, put up fliers around your neighborhood, and hold an open house so that potential buyers can preview the property.

Step 5 – Be prepared to negotiate:
When buying a home, many buyers will try to negotiate the price – expect it. Know your bottom line and don’t go below it. The goal is to sell your home for the most possible, however, don’t let a potential sale fall through the cracks over a small amount of money. Negotiation is all part of the process.

Final Thoughts

In the end, deciding whether to sell your home or simply remodel it to your liking is a very personal choice. What is right for one homeowner might not be right for another. Only you can decide what you ultimately want to do. However, we think that if you follow the advice above, whether you decide to remodel or sell, you will ultimately make an educated decision.

Jason

Founder of FinancialSumo.com, his writing has appeared on many financial, entrepreneurial and small biz sites across the internet. When not writing, Jason enjoys spending time with his family in San Diego.
Share This