Move or Remodel?
Does Moving Up Make Sense?
Answer these questions to help you decide whether moving up makes sense.
1. How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
2. Has your income increased enough to cover the extra mortgage costs and the costs of moving?
3. Does your neighborhood still meet your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
4. Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?
5. How is the home market? If it’s good, you may get top dollar for your home.
6. How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.
Remodeling That Pays
Upgrading your home is always appealing, but which enhancements really get you a good return for your money when it’s time to sell? The 2003 Cost vs. Value Report by Remodeling magazine and REALTORÒ Magazine has the answer.
To see the complete article, visit http://www.realtor.org/rmomag.NSF/pages/costvaluedec03.
| 2003 | 2002 | Variance |
Bathroom Remodel |
Midrange | 89.3% | 87.5% | 1.8% |
Upscale | 92.6 | 91.0 | 1.6 |
Bathroom Addition |
Midrange | 95.0 | 94.2 | 0.08 |
Upscale | 84.3 | 81.4 | 2.9 |
Major Kitchen Remodel |
Midrange | 74.9 | 66.6 | 8.3 |
Upscale | 79.6 | 79.8 | -0.2 |
Master Suite |
Midrange | 76.4 | 75.1 | 1.3 |
Upscale | 76.9 | 76.8 | 0.1 |
Family Room |
Midrange | 80.6 | 79.5 | 1.1 |
Deck |
Midrange | 104.2 | N/A* | N/A* |
Basement Remodel |
Midrange | 79.3 | 78.7 | 0.6 |
Siding Replacement |
Midrange | 98.1 | 79.1 | 19.0 |
Window Replacement |
Midrange | 84.8 | 73.8 | 11 |
Upscale | 87.0 | 77.0 | 10 |
Attic Bedroom |
Midrange | 92.8 | N/A* | N/A* |
12 Tips for Hiring a Remodeling Contractor
www.WMBBuilders.com
1. Get at least three written estimates.
2. Get references and call to check on the work. If possible, go by and visit earlier jobs.
3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.
4. Be sure that the contract states exactly what is to be done and how change orders will be handled.
5. Make as small a downpayment as possible so you won’t lose a lot if the contractor fails to complete the job.
6. Be sure that the contractor has the necessary permits, licenses, and insurance.
7. Be sure that the contract states when the work will be completed and what recourse you have if it isn’t. Also remember that in many instances you can cancel a contract within three business days of signing it.
8. Ask if the contractor’s workers will do the entire job or whether subcontractors will do parts.
9. Get the contractor to indemnify you if work does not meet local building codes or regulations.
10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.
11. Guarantee that materials used meet your specifications.
12. Don’t make the final payment until you’re satisfied with the work.
------------------------------------------------------------------------------------------------
Information used with permission by Realtor Magazine Online www.Realtor.com Consumer Handouts 2/21/07