Refresh or Relocate: Weighing the Pros and Cons of Renovating vs. Selling Your Home

Discover the ultimate dilemma: Renovating vs. selling your home - the key decision that could redefine your future.

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Table of Contents

• Assess Your Current Situation
• The Pros and Cons of Renovating
• The Pros and Cons of Selling
• Consider Market Conditions
• Weighing Your Options and Making a Decision
• Conclusion

Deciding whether to renovate or sell your home is a big decision that many homeowners face at some point in their lives. It's a choice that involves considering your needs, lifestyle, and financial situation. Should you invest in renovations to transform your current home into your dream space? Or is it time to pack up and find a new place that better suits your needs? In this curated guide, we'll dive into the pros and cons of renovating versus selling your home. Let's explore both options to help you make an informed decision.

Assess Your Current Situation

Evaluate your needs and lifestyle

The first step in making this decision is to thoroughly assess your needs and lifestyle. Consider factors such as your space requirements, desired amenities, and long-term plans. Reflect on your neighborhood and community preferences, including proximity to schools, work, and social opportunities. Determine if your current home meets these criteria or if there are significant gaps that cannot be addressed through renovations.

Evaluate the condition of your home

Another crucial aspect to consider is the current condition of your home. Assess its structural integrity, maintenance needs, and potential for expansion. Are there major renovation projects required, such as fixing a leaking roof or upgrading outdated systems? Take note of any significant repairs that would be necessary to bring your home up to date. This evaluation will help you gauge the level of investment needed to transform your current space.

The Pros and Cons of Renovating

If you love your neighborhood and have emotional attachments to your home, renovating might be a viable option. Here are some benefits and drawbacks to consider when choosing to renovate:

Advantages of renovating

Renovating your home has several advantages worth considering:

• You have the opportunity to increase the value of your home through strategic home improvements. Whether it's upgrading your kitchen or adding an extra bedroom, renovations can enhance your home's appeal in the real estate market.
• Renovations allow you to customize your space to better meet your needs and preferences. You can create a home that reflects your personal style.
• In some cases, renovating your existing home can be more cost-effective than selling and buying a new property. It saves you from the costs associated with moving, such as realtor fees, closing costs, and moving expenses.

Disadvantages of renovating

While renovating can be exciting, there are several drawbacks to consider:

• Renovations can be disruptive and stressful. Living through the construction process may not be ideal, especially if you have young children or a busy work schedule.
• The financial considerations of renovations can add up quickly. Construction costs, permits, and unexpected expenses can stretch your budget, potentially straining your finances.
• Over-improving your home for your neighborhood can result in a diminished return on investment. It's important to stay within a reasonable price range for the neighborhood to maximize your property's value.

The Pros and Cons of Selling

If renovating seems too overwhelming or your current home no longer meets your needs, selling might be the right move. Here are the advantages and disadvantages of selling your home:

Advantages of selling

• Selling your home provides an opportunity to relocate to a more desirable area or upgrade to a larger home that better suits your needs. It's a chance for a fresh start.
• By selling, you can significantly reduce your maintenance responsibilities. No more worrying about repairs and renovations.
• Capitalizing on a seller's market can result in a higher sale price, potentially providing you with more financial flexibility for your next move.

Disadvantages of selling

• Finding a new home that meets all your requirements can be challenging. The real estate market may not have the perfect match for what you're looking for, which can be frustrating.
• Selling a home comes with costs and fees, such as real estate agent commissions and closing costs. These expenses should be factored into your decision-making process.
• Leaving behind the memories and emotional attachment you have for your current home can be difficult. It's essential to consider the emotional impact of selling.

Consider Market Conditions

Assessing the real estate market is essential when deciding whether to renovate or sell your home. Understanding local market trends and conditions will help you make an informed decision. Factors to consider include buyer demand, inventory levels, and current interest rates. Consulting with real estate agents or market analysts can provide valuable insights into the specific conditions of your area.

Weighing Your Options and Making a Decision

Evaluate the financial aspects

When weighing your options, it's crucial to evaluate the financial aspects:

• Consider the potential costs of renovating versus the potential gains from selling. Calculate the return on investment for renovations to ensure it aligns with your financial goals.
• Explore financing options for both scenarios, such as loans or tapping into your home equity. Understanding your financial options will help you make an informed decision.

Consider the emotional and practical factors

Alongside financial considerations, it's essential to consider the emotional and practical aspects:

• Think about your readiness to handle the stress and disruption associated with renovations or moving to a new home.
• Consider your long-term plans, such as future growth, retirement, or downsizing.
• Reflect on how each option may impact your family dynamics and overall quality of life.

By evaluating both the financial and emotional factors, you'll have a clearer understanding of which path is right for you.

Conclusion

Deciding between renovating and selling your home is a significant choice that requires careful consideration. By assessing your current situation, weighing the pros and cons, considering market conditions, and evaluating the financial and emotional aspects, you'll be better equipped to make the best decision for your unique circumstances. Remember, both options can lead to positive outcomes when approached with thoughtful planning. Take your time, seek professional advice if needed, and trust your instincts as you navigate this important decision-making process.

 Call Amos Koren for your real estate questions. 520-904-4509

Amos Koren

Realty Executives AZ Territory

520-904-4509

AmosKoren@RealtyExecutives.com

Your selling must-do list: 7 essentials

If Yogi Berra was a real estate agent, he’d probably say “Selling a house is 90 percent mental. The other half is hard work.” That being said, here’s a short list of must-do’s that we consider essential to ensure a smooth and successful transaction:

Price it right
Let’s get real, right now. The market doesn’t care what you paid for it or how much money you put into it. Just like everything else, your property is only worth what someone else is willing to pay for it. Understand that, and you’re half way to the finish line. Start off right by hiring a licensed real estate agent. They’ll work up a professional CMA (comparative market analysis) to help you determine a price that satisfies your wallet and entices potential buyers.

Details, details
Now is the time to share a list of all the awesome features of your home, as well as the not-so-pleasant ones, with your real estate pro. This will help the agent create a compelling property listing that will display on websites, in social posts, on flyers and postcards.

Empty that nest
When your agent tells you to declutter, do it with a vengeance. If you need to live in the house while it’s on the market, remove all unnecessary items: donate, sell, rent a storage unit — do whatever it takes to empty out the house to its bare minimum. If you’ve already moved out, empty it completely or stage it (your agent will know the pros). Remember, we want buyers to say “Wow!” — not “wow.”

To upgrade or not to upgrade
A fresh coat of paint, deep cleaning, and new lighting and bathroom fixtures and cabinet hardware help to sleek up the place. Remember to keep it neutral and simple. Unless you’re a “flipper”, anything more extensive should be discussed with your agent, who can advise whether you’ll get a good return on your investment.

Get lost
It’s not your hangout anymore, so leave the premises when the house is being shown to potential buyers. Lurking about, or telling stories about how the kids were home-birthed pretty much freaks people out.

It’s not personal

Speaking of detachment, if you’re not willing to negotiate offers that aren’t listing price, or if they are and you’re thinking you should’ve asked for more, you might not be as ready to sell the place as you thought you were. A good heart-to-heart with your agent might be in order.

Get real — Real estate agent, that is
Hooking up with a licensed real estate agent makes all the difference in the world. They’re “people” people, so they have a vast network of associates and pros who can help take care of all the details of selling a house. They are professional negotiators and dedicated to their craft — and their clients.

Working through this checklist will help reduce the “90% mental” and “50% hard work” part of the home selling equation.

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THE FACTS AND STATS ON THE TUCSON REAL ESTATE MARKET

AUGUST 2021

Brought to you by Amos & Kelly Koren

Your "Go-To" Southern Arizona Real Estate Agents

In the blink of an eye July passed and we are in hot and sticky August. With record breaking rainfall combined with the heat and humidity you’d think we live in the Amazon! But here we are in this HOT Tucson market!

 The second half of 2020 and first half of 2021 saw an explosive appreciation in housing prices (median home price in Metro Tucson in the past 12 months has gone up a whopping 30%.) This was the result of low supply and high demand for whatever inventory was available. Would-be sellers took their homes off the market delaying their planned move for fear of COVID. Additionally, to stimulate the economy interest rates dropped to their lowest ever recorded. Add to that a moratorium on evictions and foreclosures (which have been extended) and you have a perfect storm. I don’t think anyone expected this level of surge.

In Tucson it’s not uncommon to see California license plates with buyers that are “bargain” shopping. To them Arizona is a steal as compared to their hometowns. However, some clouds are beginning to pop on the horizon. I communicate daily with agents in other parts of the country who are seeing properties begin to sit slightly longer on the market as inventory of homes is slowly increasing. This is also beginning to show in Tucson, although not enough to really make a dent.

The most recent stats which came out in August for the month of July 2021 show that the median house price in Metro Tucson was reported at $330,000, a drop of 3.5% from $342,000 which was reported in June. It was the first month in which the median home price went down since December 2018. The average home price in July was reported at $407,621, down from $426,338 for June, but still 23.9% higher than in July 2020.

 Inventory of homes also went up in July to 1,109 units, up 19% from 901 units in June. Although more homes are coming on the market they are coming at a slow pace and are sold at a brisk pace. A balanced market is a market in which there is usually 6 months of inventory. Right now, for Tucson, the inventory is less than one month. Average days on market to sell a property remains at 12 days.

 The moratorium on evictions was extended for Pima County in early August for another sixty days. This puts a lot of pressure on mom-and-pop landlords; some have gone for months without compensation from a tenant who has defaulted. The moratorium on evictions for foreclosures was extended by Federal Housing Administration through September 30, 2021. 

Bottom line…the Tucson market conditions are still robust and strongly seller favored. The relative low prices are still attractive to out of state buyers. Beginning signs of inventory increases and slight drop in median price are still not enough to put a dent in buyers’ behavior and buyers are likely to continue experiencing limited inventory through the end of 2021. Although prices may level off and not appreciate at the rates we have experienced, there is still strong buyer demand. The question continues to be affordability. A rise in interest rates will be the cause for price increases to cool off but there is little political will to do that and the Federal Reserve can hurt the economy if they push rates too soon.

So…Who do you know who is looking to sell a home, a commercial property or investment property or looking to buy one that we can help? Is there anyone you know who has a real estate question about their property value? We would love to be your referral source.

Have a Great Fall Season!!

All our best, Amos & Kelly Koren

520-904-4509

https://www.realtyexecutives.com/agents/amos-koren