The spike in inflation and the sharp post-Covid rise in building costs are starting to level out, and choosing between moving home or remodeling has become more viable.
Remodeling still has its challenges, however. The stress and work involved in managing contractors to achieve your vision can be overwhelming.
Over-capitalization is an additional issue to ponder. If you spend $80,000-plus on a major remodel, you risk investing more in the property than it’s worth. Having the best house in the worst street is not a super-smart play.
But remodeling is a tempting option when you are settled in a neighborhood with established employment and a social circle. It’s worthwhile considering the following checklist if you are thinking of going ahead.
Beware of DIY
Unless you’re a qualified contractor, don’t exceed your skill set. Buyers can tell the difference between a professional and an amateur finish. In the worst cases, the home’s value can be detrimentally affected.
Weakest link
In this post-Covid era, the supply chain for building materials is still a little fractured. Not everything is readily available at the time you need it. Your timelines can still be thrown out, and that can be frustrating.
Extra cash
Don’t forget to put aside money for any unexpected problems, such as faulty or old wiring, cracked pipes, or rotten joists. Any agent or contractor will advise you to put 10-15% of the total expense in reserve in case of unforeseen problems or changes in scope.
Red tape
Your local authority will be particular about building regulations, so be aware that approvals may delay plans.
Workmanship
Hire contractors with the appropriate licenses to ensure quality workmanship. Be wary of accepting the lowest quote.
Compare costs
Once you have sourced three quotes from contractors, speak to your real estate agent to compare whether moving may be more cost-effective.