A local real estate agent<\/a> can be an amazing sounding board. Top-selling Huntsville, Alabama agent Robert Hussey<\/a> shares:<\/p>\n \u201cIf I have somebody who\u2019s undecided, we try to do a thorough interview with them. Find out why they want to sell. What would happen if they didn\u2019t sell? Is it something that they have to do, or something that they want to do? Then we\u2019ll go out and take a look at the market. Is there a home out there that\u2019s going to fit what they want? Every situation is different. It\u2019s really all about what\u2019s going to be best for them.\u201d<\/p>\n Let\u2019s review some of the other key factors Hussey likes to review with clients and that can help you make a decision you\u2019re happy with.<\/p>\n Given the choice, about 76% of Americans in one survey<\/a> said they\u2019d rather make upgrades to their current home than move. \u201cMy house is not \u2018just a thing<\/a>.\u2019 It is an extension of my physical body and my sense of self that reflects who I was, am, and want to be,\u201d wrote Dr. Karen Lollar<\/a> in her article for Qualitative Inquiry,<\/i> a peer-reviewed academic journal.<\/p>\n Overtime we develop an emotional attachment to our homes and associate it with memories and moments that can be hard to let go of. But sometimes moving is the prudent choice, both from a logistical and financial perspective.<\/p>\n If more than a few of these factors ring true to your situation, put the for-sale sign out:<\/p>\n The beauty of homeownership, and the reason experts consider it a core wealth-builder for Americans<\/a>, is that you build equity over time. A portion of each diligent mortgage payment goes toward your principal balance, increasing your stake in the property. On top of your principal balance, property values historically increase over time<\/a>, and you reap the benefits of that upside.<\/p>\n According to Black Knight, a longstanding real estate and mortgage analytics company, annual home price growth has seen a 25-year average of 3.9%<\/a>. In September of 2020, Black Knight reported a staggering 14.2% increase<\/a> in home prices, far above the 25-year average. Between 2010 and 2020, borrowers gained over $6 trillion in equity<\/a>, a report from CoreLogic shows.<\/p>\n To calculate your approximate home equity, we recommend starting with a tool like our Home Value Estimator<\/a> to get an idea of your home\u2019s value. Then run the following calculation:<\/p>\n To make the math easier, HomeLight offers a handy Net Proceeds Calculator<\/a> to help you better estimate the cost of selling our home and the net proceeds you could earn from the sale. In addition, your agent may prepare what\u2019s called a net sheet<\/a> for you, which can help you account for any local fees and costs specific to your area.<\/p>\n As you think about: \u201cShould I remodel or move?\u201d \u2014 a calculation like this illuminates what you\u2019d miss by staying put: The chance to trade-up with a sizable down payment? The opportunity to afford a neighborhood you like even more?<\/p>\n Researchers at the Federal Reserve Bank of St. Louis in one survey found that the median U.S. household had 68% of its wealth tied up in its primary residence<\/a> \u2014 with few liquid assets such as savings, checking, and money market accounts. (Incidentally, more than 35% of families reported having no residential wealth.)<\/p>\n Having few or little liquid assets means that you don\u2019t have money readily available for renovations, unless you tap into some form of home equity loan<\/a>. This allows you to borrow against that market value you\u2019ve accrued, but that also means you put up your home as collateral<\/a>.<\/p>\n How much savings you need for a remodel depends on the level of work required to elevate the house to your liking. The average room addition costs between $20,000-$70,000<\/a>. That\u2019s why homeowners who seek a roomier abode often decide to move: Our survey of over 2,000 real estate agents nationwide in Q2, 44% of respondents<\/a> cited a need for more space as the top moving motivator.<\/p>\n \u201cHow\u2019s the real estate market?\u201d can be a light cocktail party conversation starter or the key to your decision over whether to remodel or move. Our guide to staying on top of your local housing market<\/a> offers a few easy ways to get a sense for whether it\u2019s a buyer\u2019s or seller\u2019s market:<\/p>\n If the general consensus is that it\u2019s a great time to sell due to factors like a low supply of homes and robust interest in your community, tally it as another reason to go ahead and strike while the iron\u2019s hot.<\/p>\n In theory, a home renovation sounds easier than packing up all of your belongings for a move. However, keep in mind that the average renovation spans three to 9 months<\/a>, variant based on the home\u2019s size, as well as the scope and complexity of the project. Whatever timeline you\u2019re quoted at \u2014 add a few weeks, at least. Delays are common<\/a>. And during that time, you should be prepared to deal with a chaotic living space, unforeseen problems and expenses, and strangers in the house at inconvenient hours.<\/p>\n A study by the Society of Actuaries found that 64% of retirees wish to remain in their current home throughout retirement<\/a>. However, waiting too long to downsize or find a more manageable living situation can lead to rushed or emergency moves down the road<\/a>. It can also tie up funds that could be put toward traveling or fueling a longer retirement<\/a>.<\/p>\n If you\u2019re interested in downsizing<\/a> because of aging, health, or financial reasons, very few remodeling projects will accommodate all those needs. You can add aging in place features for a stretch<\/a>, but you can\u2019t turn a two-story into a single story. In that event, you\u2019re better off shopping for a ranch-style home<\/a>, maintenance-free apartment<\/a>, or retirement community<\/a>.<\/p>\n A better school district<\/a>, closer proximity to parks and trails, or a quieter street can\u2019t be achieved through a remodel. If moving would grant you the chance to launch a different career or be closer to loved ones, that\u2019s another factor in your decision. Some of the top features that make a location more enjoyable<\/a> include:<\/p>\n Pretend that you already sold your home. Now, go out to some real estate listing websites or sign up for new listing alerts. Do a few property searches for your desired number of beds, baths, and price range. Go on an evening drive on the hunt for for-sale signs in the area. Go to an open house or two or attend some virtual open houses online<\/a>. Call up a local real estate agent<\/a> and tell them what you\u2019re looking for. All of these steps can help you get a sense for what\u2019s available and whether you\u2019d have any luck finding a different house worth moving to.<\/p>\n If you want a house that\u2019s customized to your needs and tastes, renovations are the route to take. Hussey says he\u2019s helped clients arrive at this decision after they look at homes that they can afford but wind up liking more about the home they already have.<\/p>\n \u201cIn some cases, I\u2019ll sit down with them and say, this house fits you all very well,\u201d he says. \u201cIf you\u2019re going to stay in the house for \u2018X\u2019 number of years, remodel the house and make it your own again.\u201d<\/p>\n What are some of those signs that you should remodel vs. move?<\/p>\n People have to work through their emotional attachment if their current house no longer suits them, Hussey says. However, some homeowners simply prefer to live where they are. In the 2019 study from the Federal Reserve Bank of New York, 47% of respondents identified as \u201crooted,\u201d<\/a> or attached to their towns. Their reasons for not moving were psychological, such as proximity to family and friends and their involvement in their church or community.<\/p>\n When you sell a home, you usually want to buy a new one. In the same study as cited above, about 15% of the respondents identified as \u201cstuck,\u201d or lacking the resources or ability to move<\/a>. While these individuals are more likely to live in cities and close to family members, their reasons for not moving are largely economic, such as worrying about moving costs and the affordability of housing elsewhere.<\/p>\n In Sept. 2020, housing affordability declined<\/a> for the second month in a row due to the fast pace of house price appreciation, which outweighed savings offered by low mortgage rates, according to the First American Real House Price Index. In total, 41 of the 50 markets covered by the index saw affordability decline. The five markets with the biggest declines were Kansas City, Mo.; Las Vegas; Philadelphia; Pittsburgh; and Portland.<\/p>\n If your job situation has changed, you\u2019re bringing in less income than when you obtained your existing mortgage, or you\u2019ve taken on additional debt, it could shrink the size of the loan you qualify for, making a remodel a more feasible option.<\/p>\n While you can always finance your remodel, having any kind of cash available makes this more financially viable. You\u2019ll pay more out of pocket upfront, but you won\u2019t have a home equity loan or home equity line of credit to figure into your calculations. Here are a few of the most common home renovations and what you can expect to spend on them:<\/p>\n The cost of building an addition varies depending on the size of your total project, as well as where you build your room. But let\u2019s say that you have a spacious lot that can accommodate an addition to the first floor without looking or feeling cramped. The average cost for this build is $80 to $200 per square foot<\/a>, but you\u2019ll save about $920 to $3,000 because you won\u2019t have to install a full staircase. Plus, the addition will be more attractive to potential buyers, who like a primary bedroom on the main floor.<\/p>\n There\u2019s more to moving costs than hiring movers or enlisting friends and a rental truck to help. In one study, respondents found that the psychological cost of leaving their friends and family equated to losing 30% of their income<\/a>. Respondents also equated staying put with a worth of 137% of their current income \u2014 a value that shot up to 270% for people age 50 and older.<\/p>\n If you\u2019re someone who already values what your current location has to offer, the upheaval of remodeling may be worth it considering the chaos lasts a relatively short term in the life of your home.<\/p>\n Psychological costs of moving aside, let\u2019s consider some additional financial figures. Selling a house involves a lot of line items and fees, including transfer taxes<\/a> and agent commissions<\/a>. You also have to account for the cost of hiring movers. While this can vary based on the size of your home and the distance, the average cost of moving a two- to three-bedroom home with roughly 7,500 pounds of goods is $1,250 locally<\/a>. Move long-distance, or about 1,000, and that cost rises to about $5,000.<\/p>\n Tips for those going the remodeling route:<\/p>\n Since we can\u2019t snap our fingers Mary Poppins\u2019 style and expect a new house to appear, the next best option is to make a measured and informed decision on whether to improve your existing home or relocate. While both routes can be viable, you don\u2019t want to hold onto an impractical residence for memory\u2019s sake alone or \u2014 on the other hand \u2014 regret leaving a hot location that will be hard to replicate with a move.<\/p>\n We hope this litmus test will help you tilt the scales one way or another to make a confident decision. When in doubt, sync up with a local real estate agent about your confusion. You owe it to yourself to collect as much valid information as possible to weigh what\u2019s right for you.<\/p>\n Header Image Source: (Zakhar Mar \/ Shutterstock)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" When your home starts to feel cramped or echoes with empty rooms, should you remodel or move? Real estate experts say: \u201cEvery situation is different.\u201d<\/p>\n","protected":false},"author":76,"featured_media":20109,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[320,234,330],"tags":[],"class_list":["post-20108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-add-value","category-home-improvement","category-house-value"],"acf":[],"yoast_head":"\n![\"Movers](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/11\/should-i-remodel-or-move-moving-775x413.png\")
<\/a>Signs you should sell that house and move<\/h2>\n
You\u2019ve lived in your home long enough to build up some equity.<\/b><\/h3>\n
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You haven\u2019t accumulated a lot of wealth outside of your home equity.<\/b><\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/11\/should-i-remodel-or-move-market-775x413.png\")
<\/a>Favorable market trends offer an opportune moment to sell.<\/h3>\n
\n
The thought of an invasive remodel fills you with dread.<\/b><\/h3>\n
Even the heftiest renovation won\u2019t fix your living situation.<\/h3>\n
You\u2019re excited to try out a new location.<\/b><\/h3>\n
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You\u2019ve checked out the available housing inventory, and like what you see.<\/b><\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/11\/should-i-remodel-or-move-renovate-775x413.png\")
<\/a>Start planning renovations: You\u2019re better off staying<\/h2>\n
You\u2019re in love with your location and your house.<\/h3>\n
You don\u2019t have the resources to move, or you\u2019re concerned about qualifying for a new mortgage.<\/h3>\n
You\u2019re working with ample cash reserves that can cover hidden costs and delays.<\/h3>\n
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Your roomy lot offers plenty of space for additions.<\/h3>\n
You\u2019re prepared to deal with the short-term inconvenience compared to long-term distress over moving.<\/h3>\n
The costs of moving would be a wash with renovations.<\/h3>\n
\n