David Lefkovits
One of our most basic needs is to provide a roof over our heads. But for many of us, our home goes way beyond satisfying our need for shelter. It is our sanctuary from the outside world. It is a place to entertain our friends and family. It is the safest place to enjoy family life.
Our needs are transformed as our family evolves and our economic situation changes. As time goes by, we seek to enhance the quality and enjoyment of our family life.
Today’s market reality can make it difficult for families to move in order to meet these changing needs. Unlike a few years ago, this is not because it is difficult to sell existing homes – that has gotten easier. However, the same low home inventory that has made it easier to sell has also made it more difficult to find a new home suitable to a family’s evolving needs. Such considerations factor in to the decision of whether to move or remodel.
This is driving many to re-consider the option of staying in their homes and retrofitting their existing spaces to accommodate growing families and evolving lifestyles. The common denominator between the two periods continues to be low interest rates that make both construction loans and the purchase of new homes, affordable.
Below, we offer a few concepts to consider when deciding whether to move or remodel:
Capital costs
Generally, it is better to move when the cost to remodel in order to achieve desired results equals or exceeds the cost to build or sell and buy a home that already has all required features. One should assess capital costs, comparing and understanding the tradeoffs between the cost to remodel your existing home to a level you want, versus the cost of selling your existing home (for a gain or loss), plus the capital required to purchase another home (down payment) plus your moving and storage costs plus temporary housing costs plus renovations required to the new home.
Emotional investment
This refers to the level of attachment to your existing neighborhood, neighbors, school district (if your kids are in the public school system) and proximity to work and local amenities.
Bang for your buck
If you do decide to remodel, consider the biggest renovation value drivers and lifestyle enhancers: kitchens and master bathrooms – the spaces most frequently used by homeowners. Opening the kitchen to adjacent rooms like a family room/keeping room with large eat-in islands, removing framed pantries (replacing with cabinet pantries with pull-outs) and using taller and “frameless” cabinets that provide more storage space are key to a more effective use of space.
The trend in master bathrooms is for a smaller allocation of space for tubs and larger footprints for showers.
If you’re looking to add “livable space,” the most effective way to do so is by finishing a basement or attic.
Also, consider a four seasons porch. There is a lot of demand for screened-in porches, yet, most people don’t realize this space often goes unused during the hot summer, cold winter, rainy weather or pollen season, as the space gets wet and/or dusty and needs to be cleaned. Four season porches that have large window systems can be a larger investment, but are often used all year round and require a lot less maintenance.
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