Fix up our house or sell and buy new? (Star: mortgage, credit rating)

[VickiR]

I believe in paying the contractor AFTER he has finished the job.

It scares me a bit when I have someone doing work at my home and they say they need the money up front to buy supplies. If they don't have any cash available to them, how good can their business be?

Check references. Have EVERYTHING in writing.

Vicki

[ncitgal]

Originally Posted by VickiR

Is your question more about remodeling but not overbuilding for the neighborhood? That is a concern when it comes time to re sell.

Having the most expensive house in the neighborhood isn't a good idea but if you can do the remodel and still not be the house with the most square footage, its probably worth looking in to.

Its always a good idea to weigh the pros against the cons to a re model.

Vicki

Yes...after coming from CA, I know that my husband & I have a distorted views of home values. There, anything you put into a home you got out 3 times over (at least back then). We are in the Kinderston section, which is probably the lowest priced section of Sunset Ridge, but with one of the best locations in my option. The houses in these few blocks are between 2000 & 2700sq...with at least a few having additions, but they are still below 3000 sq ft. We would have the biggest house in the surrounding block, but one block over or directly accross the course from us they are 3000+...which is still our neighborhood.

[ncitgal]

Originally Posted by Funky Chicken

Remember that you can do anything you want to a house for a price, but you can't replace a great location and good neighbors nearly as easily or predictably.
Vicki's right about overbuilding, but if you are in Sunset Ridge (sure sounds like it) you wouldn't be the only one doing a pretty serious renovation on one of the older homes in there. Where else would you go-12 Oaks near the dump for $700k to be on the golf course?

You are right...I have no interest in 12 Oaks...I am closer to the Harris plant than I want to be anyway...not to mention the dump. Plus they clearcut the place, which is a huge turnoff to me. If we were to move, it would probably be in the area of Crooked Creek or West Lake area. I watch the real estate in the area all the time, so I have a pretty good idea of what is out there.

I would just be happy if I knew that putting $100k in would get us around $100k back. I don't want to lose the equity we have. It seems that the trend in the area is sell and buy up rather than remodel and stay. Maybe its just the lure of all these new homes...

Maybe I need to go on "My house is worth what?" (HGTV for those that don't know).

[Funky Chicken]

Originally Posted by ncitgal

If we were to move, it would probably be in the area of Crooked Creek or West Lake area. I watch the real estate in the area all the time, so I have a pretty good idea of what is out there.

Funny-I live in the Woodlands @ West Lake and my brother lives in Crooked Creek!

You are right about the trend to move on to a new home neighborhood in this area as opposed to renovating-I just did it.
Our primary reason for leaving our old home in a neighborhood we liked very much was our lot. We were on a corner at the entrance to the neighborhood, so we had roads on 3 sides of our lot. During the time we were there the property behind us got clear-cut for a new development. All of a sudden we were in a fishbowl. That's why I was so picky about our new lot. We back onto a permanent buffer and are no longer on a corner. Private backyards are rare and prized around here, and I wanted to get one while making a lateral price move.

[ncitgal]

Thats the one reason I love our lot...the golf course behind but we have a deep lot, so no real worry of golf balls around the kids. We don't really need window coverings in the back of the house....the privacy is great. No fences either. I've looked alot...that seems real hard to find at any price point!

[saturnfan]

Originally Posted by VickiR

I believe in paying the contractor AFTER he has finished the job.

It scares me a bit when I have someone doing work at my home and they say they need the money up front to buy supplies. If they don't have any cash available to them, how good can their business be?

Check references. Have EVERYTHING in writing.

Vicki

Dang, Vicki!

My thoughts exactly.

[wanderintonc]

Myself, if I liked the neighborhood and location-I'd probably stay and improve. Maybe you can bring the renovation in for under $100k. You could do it in phases, or do some of it yourself, for 'sweat equity'.

[PDXmom]

Originally Posted by ncitgal

Thats the one reason I love our lot...the golf course behind but we have a deep lot, so no real worry of golf balls around the kids. We don't really need window coverings in the back of the house....the privacy is great. No fences either. I've looked alot...that seems real hard to find at any price point!

Your lot sounds like a keeper. But why not have a realtor come in and tell you how much your house is worth and what it would be worth w/ the improvements. Our first home we did this to decide if we wanted to stay & fix up or sell and move up. We ended up selling and moving up, mainly because the lot at the first house was not so great. You know what they say, location, location, location! Call the realtor you used to buy your house. I bet they would be happy to give you an assessment... especially now in January as RE is always a bit slower now than in March.

Good luck and let us know what you decide. If you do fix up please post photos!!

[danfritschen]

The advice about contractors above is great..what i live by. Dont give a deposit or a least if you give a deposit make sure it is small. And make progress payments as work is completed - and the last payment should be a few days after all work is done as agreed with the contractor. Good progress payments i think are after the foundation is done, after rough framing, after drywall is installed, then a final payment after cabinets, flooring, final trim, appliances. etc.

To help decide if you should remodel your home or move to a new one you need to figure out the cost to remodel, the cost to move and then what you like and don t like about your home. You will need some help from a real estate agent and contractor. To get started - you can try the online calculator at www.remodelormove.com that calculates the cost to remodel and the cost to move plus gives you and estimate of the cost your home will appreciate when you remodel

[Korillian]

Originally Posted by ncitgal

I would just be happy if I knew that putting $100k in would get us around $100k back. I don't want to lose the equity we have. It seems that the trend in the area is sell and buy up rather than remodel and stay. Maybe its just the lure of all these new homes...

I don't understand -- are you thinking that if you put in 100K of renovations into your home you'll get it all back when you go to sell? If so, as someone else suggested, get a realtor to come in and give you an estimate of the current value of your house and then the value that would be added with the renovations.

Here is a good estimate for various renovations and the percentage they recoup for the owner upon resale:

Remodeling Magazine: Home remodeling, kitchen and bath design, renovation, and building products for the professional remodeler

The whole article can be found here:

Remodeling Magazine: Home remodeling, kitchen and bath design, renovation, and building products for the professional remodeler

HTH!