When your current home no longer fits your needs, homeowners face a tricky decision – stay and improve, or sell up and move on? Both options have their pros and cons, as Lauren Frampton, Barrett Sotheby’s International Realty Sales Manager, notes: “Upgrading lets you customize your current space as your needs evolve, while selling brings the thrill of a new beginning’. The right choice depends on several factors – cost, time, current market conditions, long-term goals – as well as your own personal circumstances. Here, we’ll break down some of those factors to help you make an informed decision.
Cost Considerations
Remodeling can be costly, especially for major projects like kitchen renovations or adding square footage. While smaller updates (updated fixtures, a fresh coat of paint) often yield a good return on investment, larger projects don’t always pay off fully when it’s time to sell. Selling and moving to a home that meets your needs might seem more straightforward, but it also comes with own expenses—closing costs, moving fees, and potentially higher mortgage rates. Consider these costs carefully and weigh them against the potential return on investment from any planned renovations before making a decision.
Time and Disruption
Renovations can take months and disrupt daily life. Living through a kitchen remodel or construction of a new addition isn’t for everyone, especially for those with young families or remote work setups. Selling requires less physical upheaval but bring its own set of challenges - preparing your home for showings, open houses, and the packing process. The decision ultimately depends on your tolerance for disruption and how quickly you want a resolution. If the goal is a seamless transition, selling might be simpler, whereas those who can weather a renovation might find satisfaction in a refreshed home that’s tailored to their taste.
Current Market
Before making any decisions, ask a realtor for a current valuation of your home. If you have lived there for a few years, you might be surprised at how much equity you now have in your home - and if your area is experiencing a seller’s market, it could make sense to sell up and put those gains into a new property. Conversely, if the market is slow and homes are taking time to sell due to a shortage of buyers, staying put and improving your home could be a better choice.
Long-Term Investment
Finally, consider your long-term plans. If you love your neighborhood, your commute, and the local amenities, investing in improvements may be the best choice, especially if you plan to stay for several years. Updated homes also tend to appreciate more over time, making upgrades a potentially smart investment for homeowners willing to wait. On the other hand, if you’re unsure about your long-term plans or have a goal of relocating eventually, selling might be the more strategic choice. “It's not just about switching spaces; it's a strategic move towards a lifestyle that aligns with your aspirations, along with continuing your investment.”
Both selling and renovating come with distinct advantages—and each has the potential to be rewarding, both financially and personally. Ultimately, the best decision depends on personal priorities. Whatever choice you make, weigh the costs, consider the timing, and envision what feels right for your future. Consulting with a trusted real estate advisor should be your first step to solve the 'move or improve' dilemma. Reach out today to discuss your options!