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here is the scenario. I live in a great town- great schools, commute is short, people are okay- a little snobby at times but all in all - nice. I have lived here 16 years.
I hate my house. Never had the money to move so I have been stuck here. Why do I hate it? I hate the way it is set up. Its a bilevel- no basement. I have three teenagers and its always feels crowded. The noise travels throughout the house. I don't feel like it is a comfortable house to entertain in. Something about the layout of the rooms.
I could spend some major bucks and renovate my kitchen- break down the wall between the kitchen and dining room and have a huge kitchen. Maybe make the deck into a sunroom where I can escape from the noise. Or , should I just put the house on the market and look in another town for a bigger house that has more of the layout I want? The problem is the taxes will be much higher. I think I pay around $7000 now. If I move- it will be at least $10,000. Also, I would lose money in the commision - at least $20,000 plus moving costs.
Another consideration is I don't really like my property- its a corner lot on a quiet street. The lot is long but not deep- therefore we can't really build back. Also, there is a septic in the back yard.
With the way the market is, it seems like it would take a long time to sell my house. There are two identical houses on my street that have been for sale for a long time.
If I don't move and I just renovated my kitchen, would I get most of the money back when I sell?
Invite a Realtor to evaluate what your home may sell for in today's market. Then, look at homes that may work for you and compare the cost differential. If it will cost 50K to upgrade your home, and you still may not be happy, it may be worth spending a little more and find something that makes you happy. I also suggest that you speak to a mortgage professional to see what you can afford.
only you know what is economiaclly feesiable for you but I personally would spend ther money to upgrade my existing home. First off in this market selling your home could take a long time, if you have the money you could start repairs fairly soon. There must be something charming that you love about your home otherwise you wouldn't have bought it in the first place right? Also taking three teenagers to live in a new town? I think they may be pretty upset by this. I think you should stay put.
Also you mentioned something about taxes being more in the other town? Remember after you do all these cahnges to your house the taxes will also go up so I think there is no escaping that.
You can renovate but in the end if you are not entirely happy with the location I think moving would be the better option. It is a tough market to sell but at the same time it is also a great buyer's market with great mortgage rates. Also, with renovations you never know what the final cost will be. Things always come up that just add onto the budget and you have to deal with contractors who are not always reliable. Every situation is different but if you are not happy with the location I think you have your answer right there.
Sell it. Dont dump more $$ into something you hate. Just wait it out until it sells. You have been there 16 years already, whats another several years until it sells. All the work this house needs is way too much. Bilevels are not built for a reason- the layouts are poor nobody likes them. Also, basements are essential. You cant add a basement to it no matter what you try.
at the same time it is also a great buyer's market with great mortgage rates.
Hahahaa ... funny guy. Actually, it's not the best of markets whether you're a buyer or seller. If you're a buyer, prices are still ridiculous (that's the flip side of low rate), and it's often difficult to negotiate prices down to sold comps. Even if you can do that, many owners are cash strapped and unwilling / unable to address issues that come up in the inspection.
If you're a seller, you're dealing with a slow market (fewer sales), and you have fickle buyers and fickle banks to contend with. Under contract is a long way from sold.
I'd wait for sales to return to normal levels before upgrading.
I'd wait for sales to return to normal levels before upgrading.[/quote]elflord 1973
If you sell a little lower, and buy a little lower, what is the difference?
Make the move when YOU are ready. Price the home so you get offers, then the buyers will be competing to buy your home. The houses down the block will make your home look like a deal. You may want to spruce up and declutter... maybe paint a few rooms, if that applies. To make your home more appealing, fix things that are broken, and may come up on an inpection report. Also find out what is required for the C of O and make those repairs, so there won't be any surprises. Take this time to build your team of experts in selling and buying your new home. Find an agent that will market your home to the maximum numbers of qualified buyers. Be sure to evaluate your finances to make sure this move is possible, speak to a mortgage broker.
here is the scenario. I live in a great town- great schools, commute is short, people are okay- a little snobby at times but all in all - nice. I have lived here 16 years.
I hate my house. Never had the money to move so I have been stuck here. Why do I hate it? I hate the way it is set up. Its a bilevel- no basement. I have three teenagers and its always feels crowded. The noise travels throughout the house. I don't feel like it is a comfortable house to entertain in. Something about the layout of the rooms.
I could spend some major bucks and renovate my kitchen- break down the wall between the kitchen and dining room and have a huge kitchen. Maybe make the deck into a sunroom where I can escape from the noise. Or , should I just put the house on the market and look in another town for a bigger house that has more of the layout I want? The problem is the taxes will be much higher. I think I pay around $7000 now. If I move- it will be at least $10,000. Also, I would lose money in the commision - at least $20,000 plus moving costs.
Another consideration is I don't really like my property- its a corner lot on a quiet street. The lot is long but not deep- therefore we can't really build back. Also, there is a septic in the back yard.
With the way the market is, it seems like it would take a long time to sell my house. There are two identical houses on my street that have been for sale for a long time.
If I don't move and I just renovated my kitchen, would I get most of the money back when I sell?
What percentage of the money you get back will depend on what you do. Even under the best of conditions, you almost never get back over 85% of what you put in on a kitchen, (which, by the way, net's the highest average percentage return of all home improvments.) The other side of that coin is that, with a new kitchen, your house will appeal to more buyers and may sell significantly faster. Depends on the current condition of the kitchen. And losing the dining room is a detractor from that plan too, despite the larger size kitchen you would end up with. Not to everyone, but to most home buyers a dining room is a must have.
That aside, however, you need to evaluate whether it matters to you what the kitchen looks like. It doesn't sound to me like the kitchen is the sticking point for you. And no matter what kitchen renovation you do, you will still live in a bi level on a lot you don't like. You might want to start looking around at houses you like, to see what it will cost you to get into a house you want. At the same time, look into what yours should sell for. Once you have the numbers, you can make informed decisions.
I'd wait for sales to return to normal levels before upgrading.
If you sell a little lower, and buy a little lower, what is the difference?
That's what would happen if prices were a little lower. If you're upgrading, then you want prices to be low. But sales volume is another issue (and it's a mistake to confuse sales numbers with prices)
What I'd be more concerned about is the possibility that you sell a little lower and buy a little higher.
More sales volume generally means less of a gap between list prices and offer prices.
Everyone's situation is different but I really think this is a great time to buy. Interest rates are extremely favorable and there are many homes being listed for extended periods with some sellers being very motivated to sell. Of course some sellers are going to hold out for the price they want but many sellers can not wait. If that is not a buyer's market then I do not know what is.
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