Is it Time to Sell…or Renovate?

By
Real Estate Agent with Mason Real Estate CA BRE 01444168

Is it Time to Sell...or Renovate?

Many Hemet and San Jacinto, CA homeowners have been hit hard with the loss of equity, due to the collapse of our housing market and the decline in our general economic conditions.

The down-side is many people thought they were buying a home as a stepping stone...thinking that their real estate investment in the Hemet - San Jacinto CA market would be a place to establish roots with a starter home and then they would be able to sell in a couple of years to another first time homebuyer - taking out the equity they planned on earning and applying it to a larger home to grow in.

Unfortunately, there are a lot of shattered dreams in the Hemet - San Jacinto valley.  Many families today are living in over-crowded conditions and just don't know what to do.  Yes, they can afford their payments and yes they want to protect their credit...but many feel as if they just need a bigger home.

Well for those who either may still have some equity or have good credit...or even some cash stashed for a project now is an excellent time to consider putting off selling your home and looking to expand what you've got.

A well-designed renovation or room addition can not only ease the dilemma of space but add value to your home as well.  It's true that most improvements don't return 100% on the investment - but all wise improvements do make the home easier to market and make it more desirable when it is time to sell.

REASONS TO CONSIDER A REMODEL / RENOVATION 

1)...            Contractors have definitely felt the pinch in the current economic times with the decline in the housing market, many homeowners can't afford to spend money on their homes - so the contractors are often willing to lower their bids for specific projects, in the Hemet - San Jacinto Valley.

2)         The Selection of contractors is greater - since fewer of them are working steadily.  Here in the Hemet - San Jacinto Valley in Southern California it is not unusual to have multiple contractors competing for against each other to be selected to complete your project and add value to your real estate.

3)         The Cost of financing is way down.  Regardless if you are using home equity or other established credit lines, lenders are also very competitive when it comes to loaning on real estate projects.  It's times like this that your good credit and savvy financial planning pay off in a big way.

4)         Supply and Demand is always an equation when it comes to any type of real estate transaction - it doesn't matter if you want to buy a house, sell a house or remodel your home.  When the demand is down there will be greater supply and that holds true for building and raw materials as well.  With fewer construction projects taking place, the demand for building materials also decreases and with it the price drops making fixing your home that much less expensive.

5)            Waiting Time for the best known and most highly skilled contractors and artisans is reduced.  I can remember, not so long ago a certain landscape designer would have a 9 month waiting list to take on new jobs - he was that good.  Give him a call today and you'll probably see him by the end of the week, or next week at the latest.  So the quality workers may still be working - but the time to get that someone special might be a whole lot easier...and they may now be willing to travel a little bit further.

6)            Service with a Smile is much more likely.  Now is the time for all businesses to improve on their customer service if they plan on riding out the storm.  Most contractors, like most professional businesses in the Hemet - San Jacinto Valley know they have to provide superior service now, more than ever.  I'm almost willing to bet that MOST contractors you call these days will be returned.  Let me gout on a limb and even guess that most jobs will also start on time and be finished on time...can it get any better?

WORD OF CAUTION

If you are going to go ahead an look into a remodel or renovation then please do your homework on the contractor you select.  Check with the Contractors State License Board and verify that the license is in good standing.  Verify insurance, bonds and just as important spot-check several of their jobs.  Any contractor will provide references - but take the time to go by the job and inspect the work and talk with the previous client...this bit of due diligence can pay for itself many times over.

There are still a lot of scammers and scam artists out there looking to separate you from your money, but if you are in the market to fix up your home, then now is the perfect time.

 

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Until Next Time, Have a Blessed Day,

John Occhi, ePRO, REALTOR®
DRE Lic No: 01444168


ePro,John Occhi,www.johnocchi.com,realtor      Certified Probate Real Estate Specialist Logo Awarded to John OcchiFive Star Logo,Certification,REO,Five Star Institute     

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This blog and the contents written here is the intellectual property of John Occhi, Temecula - Murrieta, CA REALTOR® in the South West Riverside County region of the Inland Empire of Southern California.  The views and opinions expressed are just that - views and opinions of John Occhi and those who comment.  Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. 


I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

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Comments (5)

Syreeta Saunders
Keller Williams Realty Centre - Randallstown, MD
Keys, MBA - The Keys2Day Team

John - I think this is a great post.  I think more people should consider remodeling because if you can't price your home competitively it is not going to sell.  We tell clients - if you don't HAVE to move right now don't. 

Oct 21, 2009 01:31 PM
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Syreeta (not flirting - but cool name),

Thanks for the comment.  You are right - we may be a licensed "salesperson" - but the reality our job is so much more and there are definitely times when it makes sense to stay in the home.

John

Oct 21, 2009 01:51 PM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

A lot of people are holding on for dear life in our valley!  Lots of rehabs going on with the newly bought repos however!

Oct 22, 2009 02:43 PM
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Thanks Renee - you are right, the same is going on here.  Most of the contractors who are woking are on recent purchases...getting them fit the way the new homeowners want and expect to live...

Oct 22, 2009 06:33 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Good advice, John. I agree.

Nov 07, 2009 12:56 PM