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Empty Nesters: Remodel or Sell?
Your kids have moved out and now you’re living in a big house with way more space than you need. You have two choices – remodel your existing home or move. Here are some things to consider about each option.
Choice No. 1: Remodel your existing home to better fit your current needs.
- Remodeling gives you lots of options, but some choices can reduce the value of your home. You can combine two bedrooms into a master suite or change another bedroom into a spa area. But reducing the number of bedrooms can dramatically decrease the value of your house when you go to sell, making it much less desirable to a typical buyer with a family.
- The ROI on remodeling is generally poor. You should remodel because it’s something that makes your home more appealing for you, not because you want to increase the value of your home. According to a recent study, on average you’ll recoup just 64 percent of a remodeling project’s investment when you go to sell.
- Remodeling is stressful. Living in a construction zone is no fun, and an extensive remodel may mean that you have to move out of your home for a while. Staying on budget is also challenging. Remodels often end up taking much more time and much more money than homeowners expect.
Choice No. 2: Sell your existing home and buy your empty nest dream home.
- You can downsize to a single-level residence and upsize your lifestyle. Many people planning for their later years prefer a home that is all on one level and has less square footage. But downsizing doesn’t mean scrimping. You may be able to funnel the proceeds of the sale of your existing home into a great view or high-end amenities.
- A “lock-and-leave” home offers more freedom. As your time becomes more flexible, you may want to travel more. Or maybe you’d like to spend winters in a sunnier climate. You may want to trade your existing home for the security and low maintenance of condominium living.
- There has never been a better time to sell. Our area is one of the top in the country for sellers to get the greatest return on investment. Real estate is cyclical, so the current boom is bound to moderate at some point. If you’re thinking about selling, take advantage of this strong seller’s market and do it now.
Bottom Line
If your current home no longer works for you, consider looking at homes that would meet your lifestyle needs before taking on the cost and hassle of remodeling. Get in touch with a Windermere Real Estate broker to discuss the best option for you.
Does the Home of Your Dreams Really Exist?
Agent: “So, what kind of a house are you looking for?”
Client: “Anything with 3 bedrooms and a couple baths. Oh, and a big yard would be cool, too.”
Agent: “I know of several that we can show you.”
Client: “Just pick three that you think I’ll like, and I’ll buy one of them.”
If only it were that easy. When you ask yourself to visualize the home of your dreams, what comes to mind? Certainly not a nondescript 3 bedroom, two bath home. It’s much more likely that your vision could include features like maple flooring, granite countertops, 6-panel doors, built-in speakers, or access to 220-electricity in the garage for a workshop. Everyone has their own custom needs and desires.
You’re allowed to be picky. Realistic is imperative, but picky is fine, too. If you’re holding out for diamond insets in the shower tile grout or solid gold door knobs, I’m afraid disappoint awaits you. Think about the most important things a home will represent to you. Do you work from home? Do you entertain large groups regularly? Do you enjoy yard work or do-it-yourself projects? Each family has their own needs, so your definition of the perfect home will be very different from even your closest friends or family members.
Not only does each family have their own needs, but each family member might have their own needs. Pets come into the picture, too. Is high-enough speed internet readily available? Is there a wall that will fit your 60” High-Def 3D TV? Will the family room have enough space that you can compete at Wii™ or Kinect™ without breaking lamps? Will the huge trees that are cooling in summer make the home darker than you like in the winter? Can you bike or run the neighborhood streets? Are you concerned about how your energy consumption will affect the environment? You’re encouraged to list all the things that are important to you.
Once you’ve made your list, prioritize it according to what is important. Figure out what’s a must-have and what would be nice, but not necessary. It might take looking at a few homes to figure out what you want versus what you need. You may love the idea of having Spanish copper sinks throughout the house, but if there were no houses on the market that had them, would you resign yourself to renting indefinitely? On the other hand, you may be working from home and need fantastic data transmission capability. You probably wouldn’t want to look in a rural area that still uses dial up, but promises to have high speed internet cables in the future.
Your agent will learn from your prioritized list, and they should be able to help you find that perfect house. Be brutally honest with yourself, think 10 years into the future, and share your desires freely with those that can help you. You may not find the house that’s 100% of what you wanted, but something very close to the home of your dreams is probably out there.
What are the “deal killers”? What are the most important features on your list?
For more information on Windermere Real Estate please contact us here.
