One of the biggest decisions you make in life is when to buy a home. And whether it’s your first or fifth home, the decision never feels easy. What complicates the decision even more is when you love your current home, but it just doesn’t quite suit your needs, and you’re left pondering if you should renovate or sell. Much like the HGTV show “Love It or List It,” choosing between renovating your home or selling it is a decision that can be made easier with the help of experts.
In Minnetonka and surrounding areas, mother-daughter duo Beth Ulrich and Chelsey Danielson of Ulrich Real Estate are those experts. With years of experience, they can help determine the best route to take with your home.
“People consider renovating when they absolutely love the location they’re in and can make things work, whereas they might need to sell if they want a new neighborhood or their current home can’t give them what they’re looking for,” Chelsey says.
Beth says it’s common for homeowners to consider a remodel when their family is growing, or on the flipside, when their kids have left home, and they want to fix up the house. In the current climate, mortgage rates are also playing a factor in choosing to renovate over sell.
“The buyers who bought a few years ago that got the 3% or under interest rate, instead of taking out a new mortgage at 5 or 6%, they’ll do an addition or fix what they currently have because they’re paying so much less in the monthly payment,” Beth says.
If you’re in a position where you’re considering a renovation, performing a market evaluation on your home can help determine if a remodel is worth your time and money.
According to Chelsey, it’s important to consider how much it will cost to get what you want and whether you will get back what you put in if you decide to eventually sell the home. “We want to be sure homeowners aren’t spending too much to remodel something they won’t get back out as an investment at the end of the day,” Chelsey says.
In order to do that, Beth and Chelsey often perform two market evaluations. The first takes into account the value added from a renovation. The second evaluates the home as is. If the renovation is too costly for the area, it might make more sense to sell and find something new, but each home is unique, and it isn’t always that simple.
One example Beth recalled was a homeowner in Plymouth who decided to finish his basement in order to add more value to his home. “They were doing the renovation to sell, but it brought their value up. I think they put $100,000 roughly into the basement finish, and it raised what I could have sold their house for without the basement finish by about $175,000.”
If value-add is what you’re looking for, Beth and Chelsey say kitchens and bathrooms are the best rooms to renovate. But, they also noted that it doesn’t always have to be so extensive. Sometimes, new paint, carpet, or light fixtures can really transform a room.
There are certain circumstances where a renovation just isn’t in the cards, though. A recent client of Beth’s knew he would need to sell after his wife had a stroke and could no longer use the stairs in their home. While that decision was ultimately made for him, Beth still worked to help the client find a single-level home that suited their needs.
If you think a renovation might be what’s best for your home and family, Beth and Chelsey aren’t the only ones you can rely on. “We have a very strong preferred vendor list and we know them very well. If you’re going to do a renovation, at least get a couple of bids. Look at the builder or the remodeler’s reputation and ask to talk to three or four clients. I think it’s just really trusting the contractor you choose to work with.”
Choosing where to live is a huge decision and one you shouldn’t take lightly. Getting help from the experts can make the experience of renovating or selling much easier to manage.
Should you stay or should you go? Connect with Beth and Chelsey to help solve your home dilemma at ulrichrealestategroup.com.