Remodel while you wait out the market
Dollars and Sense
Many home sellers are finding this a grim market for sales. Houses sit … and sit … with For Sale signs in the yard. Knowing that the market will eventually come back, many families are instead deciding to dig in for the duration — opting to make changes to their existing home rather than try to sell in a bad market.
Remodeling your home can do two things: It can give you more of the things you want in a house right now, and it can position you well for an eventual sale when the market comes back.
With remodeling, however, the trick is to avoid making expensive mistakes.
If you’ll need a contractor, get one signed up for late September or October, and negotiate a discount. The later in the year you can schedule the work, the better, as most remodeling companies count on warm months to do the bulk of their year’s work. Knowing they’ll have off-season work, they’re more likely to agree to discounts. (Of course this might not work if you live in snow country and need a roof.)
Consult with real-estate agents so you don’t spend too much in the wrong areas and not get a good return on your money when you eventually sell. Kitchens and bathrooms are the biggest selling points for buyers, but even there you can go wrong if you pick update items that turn out to be only a fad, like concrete countertops in the kitchen.
Consider how serious the disruption will be to your household, and how long it will go on. How long can you realistically survive without a kitchen? Or a bathroom? (There’s something to be said for offering a bonus to a contractor who finishes on time.)
Will your property taxes and insurance go up? Find out, and add those numbers into your future expenses calculations, as well as the cost of any construction loan you take out.
Above all, consider whether it is smarter to merely fix up your home instead of doing a major remodeling. An addition that includes a master suite with bathroom won’t be as much of a selling point later if the exterior siding is damaged or the kitchen cabinets are falling off the hinges.