Does It Make Sense to Upgrade Your Home?

Clients frequently ask me if it makes sense for them to buy a new home or to remodel their existing one. I usually ask the following questions to help them decide if they are ready for a larger home or one in a more desirable location. If they answer yes to most of the questions, it’s a sign that they may be ready for a change.

1-Are you making more money? If you’re making more money, you may be able to afford higher mortgage payments and the costs of moving or remodeling.

2-Do you have significant equity in your home? Usually, if you’ve owned your home for five or more years, you may have significant unrealized gains.

3- Have you explored the idea of remodeling or adding to your home? Sometimes you can extend and update your home by adding a new room or building up. But if your property isn’t large enough, the city doesn’t allow it, or if you are not interested in remodeling, then moving to a bigger home may be your best option.

4- Do you still like your neighborhood? If you have switched jobs, had children or experienced other changes in your life, your current neighborhood may no longer adequately meet your needs.

5- Is the current housing market conducive to a move? In today’s market you may sell quickly and for top dollar, but the home you buy also will be more expensive. If the market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6-Are interest rates favorable? Interest rates are now at historic low. A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.

Clients frequently ask me if it makes sense for them to buy a new home or to remodel their existing one. I usually ask the following questions to help them decide if they are ready for a larger home or one in a more desirable location. If they answer yes to most of the questions, it’s a sign that they may be ready for a change.

1-Are you making more money? If you’re making more money, you may be able to afford higher mortgage payments and the costs of moving or remodeling.

2-Do you have significant equity in your home? Usually, if you’ve owned your home for five or more years, you may have significant unrealized gains.

3- Have you explored the idea of remodeling or adding to your home? Sometimes you can extend and update your home by adding a new room or building up. But if your property isn’t large enough, the city doesn’t allow it, or if you are not interested in remodeling, then moving to a bigger home may be your best option.

4- Do you still like your neighborhood? If you have switched jobs, had children or experienced other changes in your life, your current neighborhood may no longer adequately meet your needs.

5- Is the current housing market conducive to a move? In today’s market you may sell quickly and for top dollar, but the home you buy also will be more expensive. If the market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.

6-Are interest rates favorable? Interest rates are now at historic low. A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.