by Emily Hechler 
Over time, every home shows signs of aging. Even the most stylish design choices eventually lose their appeal. I was a victim of the Millennial gray color scheme and am loving the Gen Z green. What about that Gen X honey oak? When your space feels outdated or in need of a refresh, it’s natural to consider making a change. Whether you’re dreaming of upgrading appliances or transforming your home’s exterior, such projects require time and careful planning. But how do you decide if renovating is the best option, or if it’s time to move on and buy a new home in the St. Louis area? Explore these steps to help you weigh the pros and cons of renovating versus selling.
Create Your List of Projects
Start by evaluating the condition of your home and what you’d like to fix. This can include easier projects such as painting the walls in your living room to more complicated tasks like replacing the flooring in your kitchen. When you create this list, you can include ambitious but realistic ideas. After you add your potential projects to the list, rank them in order of most important to least important.
Describe Your Ideal, New Home
Set your first list aside and create a list of needs and wants for a new or new-to-you home. Include details like how many bedrooms and bathrooms you’d like, one story or two stories, a finished basement or slab house, and the location. Be just as specific as you were with your first list.
Estimate the Value of Your Home
Zillow offers a free tool to provide an approximate valuation, but for a more accurate assessment, consider getting a professional appraisal on your home’s current condition. Understanding your home’s value can help you decide if the projects you’re considering will pay off in the long run.
Determine Your Budget
Next, assess your budget for home renovations. Decide whether you’ll cover the costs upfront or explore financing options like a Home Improvement Loan or HELOC. Additionally, evaluate how much you can afford to spend on a new home if you choose to move instead of renovating. You can leverage the equity in your current home to help fund the down payment for your next property. Be sure to establish a clear budget for both renovation projects and potential home purchases to guide your decision-making process. Keep in mind that the current mortgage rates are different now than they were when you bought your home, and that selling a home comes with realtor costs too.
Get Quotes
With your list of projects in hand, begin obtaining quotes for the work. If you’re tackling a project yourself, be sure to document the cost of materials and estimate the time required to complete it. When gathering quotes, it’s wise to build in a buffer for unexpected expenses. For example, if a quote for new bedroom carpeting is $1,500, budget closer to $1,800 to account for potential issues like replacing damaged floor panels. If your schedule limits your availability to oversee the work, consider hiring a contractor to manage the projects and ensure they stay on track.
Create a Plan
As you collect quotes, prioritize and stack your projects until your full budget is allocated or all planned projects are covered, whichever comes first. Certain improvements may even boost your home’s value. For instance, investing $1,800 in new carpeting might increase your home’s value by $3,000. While this is just an example, consulting a contractor or real estate agent can provide insight into which projects are most likely to enhance your home’s market value. You can also check out our blog for suggestions. As you financially plan for these projects, you should also plan a realistic timeline for completing the renovations. Depending on how you plan to finance the renovations and the extent of the projects, it may take a couple months to a year or longer to get the work done,
Browse for New Houses
Take the ideal home description that you created earlier and look for these features in another house. How much do these houses cost? Do they meet all the needs from your list? What elements are not up to your standard? Where is the house located? All these questions will help you determine if you should renovate your current house or move to a different one. If you’re leaning toward buying a different home, remember that it will take a couple of months to sell you home and close on the next one.
Make Your Decision
You now have all the details you need to make an informed decision about whether you should renovate or sell your home. If you decide you want to move instead of staying in your current home, you may still have the option to tackle the projects to increase your home value and use the money toward your new down payment if it fits your budget. You may decide that the projects are too extensive and you’d rather sell your house in its current condition. That’s ok too. Choose whatever works best for your current situation.
Take Action
Whatever you decide, Alltru is here for your banking needs. If you want to renovate with a Home Improvement Loan or HELOC, we can get you the funds you need. If you want to sell your home and buy instead, get preapproval for a mortgage to make the homebuying process even easier. Either way, we can help financially support this exciting homeownership journey.
