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November 19th, 2013

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Love it or leave it? The renovate vs. buy/sell dilemma!

I’m sure you love your home… after all, if you didn’t, would you have really made such a massive purchase in the first place? The question is: Are you still IN LOVE with your home?

Lets face it… Things change and so do people! As time goes by you may find that your once perfect 2-bedroom bungalow is no longer meeting the needs of your changing lifestyle. Here lies a common dilemma for many ‘growing’ homeowners in today’s marketplace: Do we renovate our existing home, or buy a new or recently updated property instead?

Indeed, no easy conundrum…. Here are some things to consider: 

Location- This is a huge determining factor when it comes to value and ultimately determining a budget.  If you live in an up-and-coming pocket, the value of your exiting property if renovated may be higher than that of a newer home in a different location. Finances aside, if there are certain things about your area that you couldn’t do without (services, proximity to schools, friendly neighbours, etc.) than you may be more apt to renovate. To help you make the decision, get an appraisal of your home and then look at properties that have recently sold with similar improvements to the ones you would like to make. A knowledgeable Realtor with a renovations background can be very helpful.

A closer look at finances- It isn’t just the up-front costs (building materials/labour vs. purchase price of new home) that you need to consider. Factor in what your home costs to manage on a monthly basis with and without improvements. To add an extension to an existing property there are costs associated with obtaining the appropriate permits and municipal approvals to do so.  Also, it isn’t uncommon to run into surprises when renovating (especially in older homes) that lead to additional costs. Alternately, the process of moving is by no means easy or cheap, and there are never guarantees when it comes to how well your home will do on the open market. If you will have to renovate to some extent in order to sell your home in the first place, maybe it just makes more sense to renovate for your own enjoyment instead.  

The real motivation-  Look at the real reasoning for this decision. Do you need more space? Don’t we all? Maybe your home CAN still work for you and you CAN fall in love again, simply by easily re-working what you already have. It’s entirely possible that you don’t need a new home or a major renovation overhaul, but rather just some creative storage solutions and a good de-clutter. Need help with this? Click here for tips.  

Shows on TV like W Network’s  ‘Love it or List it’ make it look so easy, but the reality is that for every good reason you can come up with for upgrading to a new home, there is probably an equally good reason for wanting to stay where you are. Weighing the pros and cons along with the finances are important. Again, working with an experienced and knowledgeable Real Estate Agent can make this daunting decision easier. Not only can experts like myself provide information to help you understand the market, your budget and the various possible outcomes, but we can also help you identify what areas of your home might require the most and earliest attention to save you time and money.

Feel free to give me a call if you need advice. That’s what I’m here for. 

All the best,

Trish