Special offer

To Move or Improve, That is the Question

By
Real Estate Agent with Prudential Jack White/Vista Real Estate

To Move or Improve, That is the QuestionYou have a new baby on the way and the Anchorage house you thought was big when you bought it suddenly doesn't seem so large.  Or, you are beginning to work from home and find that the kitchen isn't really conducive to good business.  You may find yourself wondering whether the home you currently live in will hold the changes your family is going through or whether you should just start looking for a new place to live To move or improve...now that is the question!

To decide whether making a few improvements makes sense or if you should move into another home, you should really ask yourself the following questions:

How long do I plan to live in my current home?

If your home is just a stepping stone to getting another Anchorage home in the next couple of years, investing alot of money into home improvements may not make much financial sense.  Also, living in a construction zone can be stressful.  So, make sure that the improvements you plan on making will be ones that are worth the stress and sawdust.

When I do sell the home, can I recoup the cost of my improvements?

Not all improvements are alike.  Ask your Anchorage real estate agent for your neighborhood comps for Anchorage homes recently sold in your neighborhood to see if your planned improvements are worth the cost.  If the cost of improvements prices your home outside the local real estate market, you may want to reconsider whether to continue with the remodeling effort or not.  If you still do make improvements, be prepared to absorb some of the cost to do so because you will not be able to recoup the full cost when you sell your Anchorage home.

Do my improvements make sense?

In other words, if you live in an older home and wish to completely tear out the kitchen to install a brand new, $75,000 one, is that really the smart thing to do?  Many appraisers believe that making improvements that don't fit the original design or time period of the home's construction can be too costly to recoup when it comes time to sell.  Also, before you construct that additional room on your home, make sure to check the setback requirements to make sure the addition follows zoning laws and doesn't actually partially sit on your neighbor's property.

Is is possible to "over" improve my home?

The simple answer to this question is yes.  If you make improvements that put your home's price point out of touch with the rest of what the neighborhood has to offer, it may take you much longer to sell.  The improvements you make to fit your needs may limit who you sell to in the future.  If you plan on selling your Anchorage home in the next few years, this is something you should consider before you remodel.

There are many things to consider when you wish to remodel your Anchorage home.  Consider and weigh the options before deciding whether to move or improve...that really is the question.  If you do decide to sell your Anchorage home, please contact me.  I'm here when you need me!

Pauline Hofseth, your Anchorage real estate specialist

Posted by

Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Good looking kitchen and super points to consider on should I stay or should I go.

Nov 03, 2010 10:18 AM
Rebecca Nystrom
RE/MAX Renaissance - Phoenix, AZ

Great blog!

Nov 03, 2010 10:18 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Great points about over-improving a house

This holds especially true for houses in cookie-cutter subdivisions - the owner will probably never recoup the money spent on upgrades and improvements.

Nov 03, 2010 10:31 AM