When choosing between remodeling your home or to sell, ask these questions:
Review the available budget to see how much remodeling you can afford to do.
If adding on, consider total space requirements as well as foundation weight load limits if building up.
Consider local zoning, association rules and building ordinances.
Review your home’s value and the amount of equity in the home.
Are there affordable properties for sale that would satisfy housing needs?
Will your remodeling project add value to your home?
Consider the amount of work involved and time it will take to remodel.
When you Decide to Sell
If selling your home, it’s a good idea to already begin shopping for your new home before putting your home on the market. In some markets, a home can sell within days or a couple of weeks.
You may wind up with two mortgages if you buy a new home before your home is sold. Ask your real estate agent or banker about a bridge loan to help make the double payments. Most bridge loans are based on the same standards as for mortgages. Be aware that during the term of the loan you must continue to pay both mortgages. By shopping around for the best bridge mortgage, you can save money.
After you accept an offer on your home, closing and moving dates must be coordinated with the close of escrow. Put all agreements in writing, and protect yourself by negotiating financial penalties for failure to comply with these dates. If you haven’t found a home when the offer is accepted, you may be able to rent-back your home until your new home escrow closes. Your real estate professional can assist in aiding your decision.
Before the actual listing appointment you should:
Have prepared your home for sale.
Have the paperwork readily available.
Have available all necessary information regarding current loans, liens and other pertinent information which might affect the sale of the home.
Be mentally prepared and ready to objectively look at the facts that will be provided by the agent with regard to price and sale information.
Prepare an information sheet which will help point out for the agent all of the amenities you see as the most important features of the property.
