Remodel or Move

I think the answer circles back to the oldest idea in Real Estate: location, location, location. If you’re happy where you are, and your home is in need of updated finishes, absolutely remodel. However, maybe your home location is fine, but your home was new 20-30 years ago. The popular design 20-30 years ago was definitely gearing up to our palatial mediterranean homes, or if you’re really lucky, you have glass blocks in your home. (I’m sure I will regret saying that someday because someone will figure out how to make that design work). Either way, maybe it makes sense to remodel while you live in your home if the changes aren’t significant. But what if you feel meh about the location and the home needs some work. What are the variables you need to consider?

Taxes. Benjamin Franklin’s “in this world, nothing can be said to be certain, except death and taxes” is a reminder that taxes are always a variable. In this case, there are four questions to ask: how much are you currently paying in taxes; how much is your home currently worth; how old are you; and how much is the proposed home you’d be considering? If you’re 50, you purchased your home 20 years ago and you’re considering selling, you may want to wait 5 years for when you can exercise Prop 19. For more on that check out this article Proposition 19-Save on your property taxes
Expectations of your Next Home. In a flat market, this is a fairly easy proposition. In a squirrely market, this can be a real challenge to navigate. In a fair or tight market where things are fairly predictable, this ought to be a fairly simple task to spend a little time online, contingent upon you knowing your budget. If you’re navigating a squirrely market, you may want to do what you can in order to protect yourself by using hedging language such as “subject to seller finding replacement property”. The transition of identifying your next home can range from a day at the beach to a scenario you wouldn’t want to wish upon your worst enemy.
Is your home serving your needs? If you purchased your home as a single guy and now you’re engaged or married with a dog and planning on having a family, maybe your needs are beyond a remodel and a new home is the right solution.
Last, and this requires introspection and honesty, what is your appetite for a remodel? Sometimes the cognitive dissonance of your ability to take on a remodel can be a significantly miscalculated variable because HGTV can make it look easy. It’s easy to think that you won’t make the same mistakes. However, you’re human and things happen. It’s important to not underestimate your ability to roll with the punches when navigating a remodel. The hardest part is that you are the only one that can answer that question.