Boy, is this a loaded question…..so many things to consider
~ Will remodeling accomplish what you really want?
Adding space, just for the sake of making room, may not be the solution. If you are really fed up with specific elements of your home, it's time for a change
~ Budget- What is your overall budget? Can you get what you want for the money you wish to spend on your remodel?
Remember, when remodeling you are paying top dollar for new materials and labor. Could you get these same amenities by purchasing a pre-owned home and pay a fraction of the cost.
~ A new loan- Is the interest rate, currently available for a new loan, less than your current rate on your home loan?
If there is a significant difference in these 2 interest rates, you could see significant gains over the long run and take the opportunity to enjoy the added amenities of a new home?
~ Taking out a small second- How high will the interest rate be on the second you take out?
It pays to know exactly how much that second is going to cost you. Perhaps you may want to consider refinancing with cash out at close of escrow to fund your remodel project.
~ How much can your neighborhood take?- Are you going to end up being the biggest house on the block?
Over building in your current neighborhood could wreck havoc when it is time for you to sell….think ahead.
~ The disruption of remodeling- Remodeling takes time and often means major adjustments to your lifestyle during the remodel. Are you going to be without a kitchen for several weeks….just how fast can you get a roof put back on after changing your roofline?
~ Timing- Is your family growing? Do you have to consider the possibility of parents moving in with you?
Take a look at some of the possibilities in your life.
~ Do payments matter? Have you suddenly come into a large sum of inheritance that you can use to help finance the project or a new purchase? How will your payments be affected?
Consider all of the options
~ In a buyer’s market vs. in a seller’s market?
It’s all a game of percentages….In a buyer’s market you have more buying power with your dollar, while the opposite is true in a seller’s market. Buying up in a buyer’s market can present real opportunity.