Should You Sell or Renovate Your Orange County Home? Things to Consider

You've owned your current home in Orange County for a while and you've started to think about selling your home.  Or you're considering whether staying put and renovating is a better choice. Things have changed since you bought your home - you've moved up in your career, got married, you have 3 kids and a dog. Maybe you're an empty nester. Your prferences and needs aren't what they were when you purchased your home and maybe it's time to consider your options. Deciding whether to renovate your current home or sell and purchase a new one is a decision most homeowners eventually consider. This guide will help you weigh your options and make the best decision for your needs, finances, and future plans. Step 1: Take a Good Look at Your Current Home Space and Layout Currently: Does your home's layout work for you? Enough bedrooms and bathrooms, storage space, bigger living area, home office? If you need more space, does your lot afford enough room to do so while observing local building codes and zoning rules?  Future Plans: Are you starting or expanding your family and are you looking for top rated schools (GreatSchools.org is a helpful tool for this)?  do you expect to live a multigenerational lifestyle as parents age, or have your kids all moved out and you're finding you have more space than you want or need?  Check the Condition and Age of Your Home Maintenance and Condition:  How’s the roof, plumbing, and electrical systems holding up? Are those systems reaching the end of their lifespan and nearing time for replacement?  Neighborhood and Location Neighborhood Vibes:  The local amentiies, lifestyle. Are there clubs, sports teams that kids are involved in? Is there anything that you don't love as much as you used to? Do you want to be near hiking trails, the beach, golf course?  Market Trends: Are home values trending up? How much has your home's value increased?  Step 2: Consider the Financial Side of Things Understand Costs for Renovation Estimates: Get a few estimates for the renovations you're considering. Include the the cost of permits and leave a cushion for unexpected items.  Financing: Will you pay for renovations with savings, home equity loans or a refi?  Will you sell that collection of baseball cards? How long will it take to obtain the funds?  What About ROI? Return on Investment (ROI): According to the experts at Seapointe Design & Remodel, kitchens and bathroom remodels often give the best returns but there are other renovations that can also provide a strong ROI. Research how much value your renovations will add.  Comparative Market Analysis (CMA): Ask a real estate agent to compare your home with the renovations to homes in the area that are similar.  Calculate the Costs of Trading Up Selling Your Current Home: What will you net after the sale once the mortgage is closing costs, agent commissions and other expenses are payed off? What will you actually be left with?  Buying a New Home: Consider the cost of a new home in the location and with the features you want, including the amount you would need for down payment, closing costs, and moving expenses. Mortgage Rates: Will trading up mean higher monthly mortgage payments?  Step 3: Weigh the Emotional and Lifestyle Factors Think About Emotional Attachment Are you attached to your current home because of memories and familiarity? Or are you ready to begin a new chapter in a new home?  Renovation Can Be Disruptive Renovation Disruption: Renovations can be noisy and messy. Are you ready for that? Will you have to move out during renovations? Packing and unpacking is often stressful. What about your pets? Will you have them in your temporary home with you or will you need to make alternate arrangements for them? How will your temporary home's location impact your lifestyle?  Evaluate Your Lifestyle Goals Long-Term Plans: Do you want to find your "forever home" and stay put for a long time, or do you see yourself moving again soon or in the next few years? Community Ties: How strong are your ties to your current community? Have you or your kids made close friends? Do you just commute to and from work and have little involvement with people or organizations? Do you have ties and friendships elsewhere?  Step 4: Make Your Decision Make a Pros and Cons List Write down pros and cons of both renovating and trading up. Do it on paper - sometimes seeing the list in physical form makes it easier to make a decision.  Talk to Pros Real Estate Agent: Meet with an agent to find up to the minute information and advice on market trends and potential resale value of your home and to find out what potential value your contemplated renovation might add to your home.  Contractor: Talk to a reputable licensed contractor about the scope and cost of the renovation you have in mind.  Financial Advisor: Discuss your financial situation with a professional to make sure you're making a wise decision.  Conclusion Take your time, consult with professionals, talk to your family - after reviewing and weighing these factors - needs, finances, and future plans - you'll be ready to make your decision.  Kristine Marquez is a licensed Realtor®  and serves the Orange County, CA area and excels at advising homeowners about their biggest investment - their home, providing the information and insight homeowners need to make decisions that support their near and long term goals. She and her husband relocated to OC from LA County more than 20 years ago and they have raised their three daughters here and share their home with them, as well as their dogs and cat. She can be reached at kristine@kristinemarquez.com