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SHOULD I MOVE OR REMODEL?

You are ready to create the home you have always wanted. Perhaps you have started a family
(or your family is growing!), and your needs have changed from when you originally bought
your home. Trying to decide if you should sell and move, or remodel your current home, is a big
decision. Here are some things to consider to help you arrive at the best decision for you and
your family.
Decide what you want to change: Do you need to add a bedroom? Expand your family room?
Renovate your kitchen or bathroom? All of the above? Once you have realistically decided
what you want, it’s time to get into the details.
Research remodeling costs: Currently, the usual estimates for doing a remodel in Los Angeles will
run you about $100 – $300 per square foot of renovation. You should take a look at your
current mortgage, as well as what you have in savings. Renovating involves an immediate
expense, but moving could end up costing you more down the line. Another good rule of
thumb is your remodel should cost you not less than 5%, but not more than 15%, of your
home’s value. Will renovating give you a good return on your investment?
Examine the current market conditions for selling and buying homes in your area: You can
look on Zillow or Redfin to see how comparable homes in your area are selling and for how
much. Use a trusted realtor to give you an idea of how your home would sell, and you can also
get an actual appraisal. This should give you a good feel for whether or not you can afford a
replacement home.
You will also want to look at all of the costs of selling your home: closing costs, realtor
commissions, escrow fees, home preparations and repairs, seller concessions, title fees, capital
gains tax, moving fees, to name some.
Consider your location: This is an important factor to look at, whether you decide to sell or
stay and remodel. As we all know, location can be everything in a successful and profitable
sale. Do you love where you live, or are you ready for a change?
Do you have an emotional attachment to your home? Maybe you are living in the home you
grew up in, and the physical structure has special significance for you that means too much to
give up. Perhaps you simply love your home and your neighborhood. Whatever your reasons
are, if you love where you live, that’s a good reason to remodel over selling.
Look at the inconveniences of remodeling: There’s no question about it…a remodel of a home
you are living in will be messy and chaotic. If you are renovating your kitchen, you will be
displaced and will have to create an alternative. Perhaps you have another space that can
temporarily become a very minimal kitchen, or maybe you can rent an RV for the time it takes
to get your kitchen back. Losing a bathroom could be equally as inconvenient. You will likely have some expensive surprises. A wise plan to offset this is to figure out your max spend amount, and then set aside 20% for these unplanned conditions.
However, if you plan carefully and have the right frame of mind, you’ll be able to go with the
flow and can enjoy the excitement of the process, with the promise of your beautiful new space
at the end of all the chaos!
Here at RWT Design and Construction, we can help you decide if a home remodel is the right way
to go. We have been in the construction business since 1989 and have years of experience in all
types of quality design and building projects, ranging from simple to extremely complex
construction work, serving many satisfied customers throughout Southern California. We will
provide you with quality designs, professional workmanship and impeccable, reliable service.
Contact RWT Design and Construction at 818-841-8600 to find out how we can help you build
your dream!