We were at a crossroads a year ago: We were expecting our fourth child in our three-bedroom home, and we didn’t see how we could possibly fit all of our people—and stuff—into the house. Thanks to our basement’s design, it held a ton of unmanageable clutter, and that clutter was slowly making its way upstairs.
The way we saw it, we had two options. We could either move into another house with more space, or we could stick around and make the necessary renovations while building equity in our home.
It wasn’t an easy decision. As realtors, we knew the numerous steps that come with buying and moving into a new home, but we also knew the challenges that come with renovations.
So we looked at what the ROI would be if we went with the remodeling route.
We started by evaluating our location. We knew we were in a neighborhood that would grow in value over time, so that was a major benefit to staying. On top of that, any improvements we made to the home’s value now would only help later on.
We finally determined the best course of action for the highest return on investment, all of which was concentrated in the basement:
Build a half bath.
Create recreational space for the kids.
Create home office space for Mom and Dad.
Install shelves in our laundry nook so we’re no longer stuck folding laundry in our bedroom.
Between our own hands and a few contractors, we’re proud to say we only have a couple more weekends of painting before it’s all done!
Our basement with the small office, new laundry shelves, and a space for the kids to draw on the (blackboard) walls!
Our basement with every nook and cranny used.
The best part: Thanks to all the homework we did up front, we’re expecting a 130% ROI for every dollar we put into our project when we sell the home.
When Staying In Place Is Best: Building Equity In Your Home
We’re always thrilled when we get to help people buy or sell a home in Pittsburgh, but sometimes moving right now isn’t the best option. Instead, it could be better to wait.
Here’s why:
1. It’s an opportunity to create equity in your own home. Thanks to the improvements to our basement, the value of our home has increased—in a neighborhood that’s projected to grow in value over the next few years. That means we’re seeing twice the benefits from a single project.
Before you jump in, talk to an expert to understand what improvements will best increase the value of your home. Ted and I are always available to help you determine the best course of action.
Once we determine what improvements should be made, we should also discuss which portions are the best to do yourself (if you’d rather invest extra time instead of extra money), and which are the best to outsource.
This decision comes down to three factors:
Budget.
Time.
ROI.
We help you navigate these priorities to make the right decision in the Remodel Versus Move debate.
2. You get more time to save. If your goal is to move into a bigger home or one in a better location, staying put gives you more time to save up for the house you want. With extra cash in your coffers, you may have more opportunities down the road.
3. You’ll have opportunities to expand your skill set. A remodel is the perfect opportunity for the DIYer in you to learn new skills! If you need to, get to YouTube or the How-To section of your local bookstore and learn how to install flooring, hang shelves, etc.
In our remodel, Ted spent a few hours searching Pinterest and YouTube for just-right laundry shelves, and by the time he jumped in, it was seamless. As we said before, just make sure you’re balancing those three factors—budget, time, and ROI—before you tackle the project yourself.
4. Remodeling is more affordable than buying. Whether you go DIY or hire a professional, remodeling is usually a cheaper route than moving.
When we were considering moving, what we were really considering was How will we get a house that will help us declutter our lives? At that point, it didn’t really matter if it was our current home or a house for sale on the other side of Pittsburgh.
Of course, when we put our budget together for the remodel, it was significantly smaller than what would be required for a new house. Plus, that money is now acting as an investment. If we decide to sell in a few years, we should make a nice profit.
5. You’ll avoid the stress of a move. Moving is often listed as one of the most stressful events you can live through, but that’s not just because of the financial hurdles and finding a great mover to help you. It’s also because of changing schools, meeting new neighbors, and learning your way around a different part of town. Staying put means the kids keep the same teachers and friends, you won’t have to move away from your pals across the street, and you’ll still know right where everything’s located in the grocery store.
We’re Here to Help
Whether you’re moving or need recommendations on your remodel, we’re happy to help! You can reach us at theblocks@theblocksintheburgh.com or call us at 412.926.7976.
Cheers,
Julie & Ted