Need More Space… Should You Move or Renovate?

Do you love your neighbourhood but find with your growing family you require more space? Here are some examples on how to save money renovating your existing home:

Think about your needs: it can be a tough decision when determining to stay where you are and renovate your existing house, or move to another, maybe a newer house? How do you make that decision? First, you need to determine what your specific needs are. If your current home could meet those needs with a more efficient layout, then a renovation might be the better choice. Think about bedrooms, bathrooms, the kitchen and shared areas. Maybe you can add space by developing the basement or attic. If you’ve decided to renovate or add an addition on to your existing home, check the building and use restrictions for your neighbourhood. Additions require inspections from the City Municipality where you live!

Don’t stress: whether you decide to move or renovate, you’ll likely encounter stressful situations. Being well prepared and organized can help you avoid any and all potential issues of the choice you make. If you decide to move, you will need to sell your current house and purchase a new one at the same time. Don’t loose focus on selling your home because you’re devoting too much time to finding a new one. Make sure it’s staged appropriately and everything is well maintained so you can keep up its appeal to potential buyers. Don’t let the challenge of finding a new home impact your ability to sell your current one. Ensuring that your sale and closing dates are compatible is another difficulty you might encounter. If your home sells before your new home is available, you will have to find a short-term place to live, and you may need to put your things in storage. If you purchase a house before your old one sells, you may need to carry two mortgages at the same time. If this is part of your plan, be sure that your bank is willing to offer you bridge financing before making any final decisions. 

Financially speaking: if you decide to renovate, decide how you will fund the work before you sign the contract. Remember that any number of contractor gives you is really just an estimate—the job will probably cost more in the end. You may not be able to resist picking out expensive fixtures when the time comes, or you might encounter unexpected areas behind the walls that need repair. Make sure you can afford both the cost of the work and have a large contingency fund. You will also want to consider the resale value of your newly renovated home. If you are hoping to recoup even some of the cost of your renovation, ensure that you are not over-improving your home when compared to the other homes in your neighbourhood, or even on your street. If your home has significantly more bedrooms or square footage than the others around it, you still won’t be able to sell it for significantly more money than your neighbours’ home. You have a lot of money invested in your home so if renovating it really won’t add to its resale value enough to validate its resale consider the move. If you decide to move, make sure that you can afford the type of new home that you want. Be sure that you have a realistic idea of what your current home will sell for. You will need to be pre-approved by your bank for a mortgage before you put an offer in on a new home. Remember that the size of your house you can afford will vary depending on the location you choose. Another expense to consider when moving is the closing costs. Commissions paid to real estate agents, transfer taxes, lawyer’s fees and title insurance. 

 

Rajat Pathak
Sales Representative 

CENTURY 21 Miller Real Estate Ltd. 
Brokerage Independently Owned and Operated
#4 Office in Canada 
By Production CENTURY 21 Canada 2013
467 Speers Road, 
Oakville, ON L6K 3S4
Direct: 647.233.2777

Email:  rajsells@live.ca
www.century21.ca/rajat.pathak

Rajat Pathak

Rajat Pathak

Sales Representative
CENTURY 21 Miller Real Estate Ltd., Brokerage*
Contact Me

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