Are you stuck in a rut trying to decide whether to renovate or sell?

 

It’s easy to get caught up going around in circles if you don’t have enough information to make decisions. This month in the 101.5FM radio Morning Magazine show I tell you the steps to help you get moving in the right direction.

Renovate or Sell! It’s a very hot topic isn’t it! Why has it become so difficult to make this decision lately?

It’s because the cost of construction and the cost of houses have grown so much over the past few years. In many cases by around 30-40% or more since about 2020. Every direction you turn is very expensive, so it’s tough to work out which is the most affordable solution.

We talked about renovate or sell on this show a few months ago didn’t we?

Yes we did, and I covered the very first step – to help you work out if your house was worth renovating, or if you were better to sell and start again somewhere else.

For anyone who has decided that they have a house that’s worth renovating and they really want to stay put, can you tell us the next steps to make sure that’s the best solution?

Yes absolutely!

Step 1 is being very clear about what you want to do, and how much you have to spend. Write down a list of the rooms you want so you are in agreement with your family about what you want to do. This is your design brief. Get advice from a mortgage broker about how much you can borrow. This amount of money is referred to as your budget.

After you are clear about your brief and budget, Step 2 is to make sure they align, and to do this you need to get started on design. If it’s only a small renovation or extension, you might come up with the ideas yourself. If it’s a large renovation, you might need an architect to give you some design ideas and prepare some concept plans.

Once you have some design ideas, Step 3 is to find out how much they will cost to build. You can get this construction cost information from a building cost estimator, or a builder if you can find one.

And finally, Step 4 is working out if your ideas are financially feasible. This means, making sure that the cost of your existing house, plus the construction cost of your renovations, won’t add up to more than your house would be worth to sell in the current market.

A good real estate agent can help you work this out. They can give you an appraisal of your existing house value, and a rough guide to what your house would be worth when you complete your proposed renovations.

Is there a specific order that we need to complete these steps in?

The order you complete these steps will depend on your ideas and financial situation, so it can be different for everyone.  However you decide to complete the steps, as you move through you will get clarity on whether renovating is the right way to achieve your needs, or if you are better to sell and buy a better house.

 

NEED MORE INFORMATION?

 

Listen to the 101.5FM radio show episode HERE

In the Renovation Collaborative Courses I guide you through the entire home design process starting with how to decide whether to renovate or sell.

In Podcast Season 1. Renovate or Sell I guide you through the process and tell you the processionals who can provide you with the information you need to help you make decisions.