Angie's List

Services: Remodeling versus Moving

For many homeowners who have outgrown their abodes in either size or design, their first instinct is to shop for a new home.  Angie’s List suggests another option that may actually be more affordable and better for the family in the long run: remodeling.

 

 “Many of us love our neighborhoods and dread the idea of packing up our lives just to get another bathroom, bedroom or a bigger garage,” said Angie’s List Founder Angie Hicks. “As a rule of thumb, buying new is your best option if the improvements you want will cost more than 30 percent of the value of your home.”

 

But there’s more to making a sound decision than simple math, Hicks says.

 

“Don’t forget to factor in the physical work of packing, moving and unpacking; saying goodbye to good neighbors; figuring out new commute routes for work, school and fun.  How likely are you to sell your current home before closing on the new one? There will be moving costs whether you do it or hire it to be professionally done.  When you look at that big picture, remodeling may be a better option than moving.”

 

Before making any decision, Hicks suggests spending time with a reliable real estate agent and home improvement expert to gather estimates on cost, time and issues for both options.  Angie’s List (www.angieslist.com), the nation’s leading provider of consumer reviews, has collected information on home improvement, home sales and moving for the past 14 years.

 

“Reliable real estate and remodeling professionals will give you hard facts that will help you make the best decision for you and your family because they know if they treat you well this time, you’ll likely come back to them the next time you need help,” Hicks said. “Put together a list of pros and cons for each option – you’ll be surprised how helpful it can be to see the words and numbers on paper.”

 

For those who decide to buy new home, the move can cause as many headaches as the purchasing process.

 

“Find a reliable mover who will explain how the move will be done and what you’ll be responsible for, as well as how you’ll deal with any damage along the way,” Hicks said. “Here’s another tip: hire at least four weeks in advance and arrange for it to be done in the middle of the month. While you may have to rearrange your schedule, those dates are typically less busy for the moving companies, so you’re more likely to get a top-notch crew than on the weekend.”

 

Six Questions to Help Decide Whether to Move or Improve:

 

1. Do you like your neighborhood? Consider the proximity of your job, schools, shopping areas and places of worship and how a new neighborhood will affect your ability to reach all those places.
2. How long do you plan to stay there? Consider a major remodeling job if you intend to stay in the home at least five to 10 years. There’s rarely short-term financial benefit from a major improvement project.
3. Do you have the largest and nicest home in the neighborhood? If so, your home is not likely to appreciate much more in value. But if you have two full baths and others in your neighborhood have three or four, adding a bath is a good investment that will pay off when you’re ready to move.
4. How’s that floor plan working out? New homes feature wide open spaces and trendy floor plans, but remodeling can improve the flow of older homes.
5. How does your garden grow? If you’ve put a lot of yourself into the landscaping around your home, you may have deeper roots than you first think. Consider what you can bring with you, or if you’re ready to start all over.
6. What’s the true cost of moving vs. remodeling? Don’t make a quick decision based on what seems like a bargain. Evaluate the true financial and emotional costs, as well as the time involved for each option. Be sure you know if your new home will need repairs or improvements. Any new furniture or decor you buy for the new home should factor in, as well.

 

If you remodel:

• Create a plan: If the work will interfere with your daily living, make plans to live around it. Research multiple contractors and choose one you feel you can work well with.
• Think about investment returns: Remodeling your kitchen or bathroom will yield the largest returns in the long run. Least amount of returns: pools and sunrooms.
• Live by the 30 percent rule: The cost of your home renovations should not exceed 30 percent of the property’s value. You’ll likely be better off moving if you have to spend more than that.
• Check credentials: Do your research. Check out references and get at least three estimates. Check out assertions for licensing, bonding and insurance.

• Read and understand: Insist on a written contract that details the job, costs and timelines.
• Money matters: Don’t pay more than 15 percent down, and hold back about 10 percent until the work is complete to your satisfaction.

• Be patient: No matter how big or small, remember that with any project you’ll run into unexpected issues that may cost more or set back the final date of completion.

 

If you buy a home:

• Hire a reliable agent: Your agent should design a marketing plan just for you. Get a copy, review it, make suggestions if appropriate, and hold your agent to it.
• Communicate: Good agents will contact you about your home sale/purchase status at least once a week; often more. Anything less is a sign of a lazy agent.
• Research: Do a little Web surfing to be sure your home is really being marketed. If you can’t find it online, or you find it only on one site, (especially if the marketing plan calls for more) talk to your agent. Check real estate reviews on Angie's List before you decide on a Realtor.
• Know the Market: A good agent will update you, not only about your house, but also about similar houses in your area that have sold or gone up for sale. 

 

If you sell your home:

1. Set the stage:  Nearly 90 percent of homebuyers now research homes online, according to realty industry research. So it’s important that the house be staged and looking its best before the photos are taken to post online. Consider hiring a professional stager to help you put your home in its best light.
2. Look outside in: A buyer first sees what’s outside your house, not in. Freshly cut grass, manicured shrubs, swept sidewalks and a power-washed driveway look inviting; sick or dead potted plants don’t.
3. Clutter kills: Go through every room in your house and decide which belongings you’ll need in the next six months and which you won’t. Get rid of the second pile — in the trash or in storage.
4. Nothing personal: Remove all photos, degrees and other personal effects. The buyers want to imagine themselves living there and too many reminders of your family can make them almost feel like they’re invading someone’s home. That’s a sales turn-off.
5. Know your audience: The best home stagers research the types of people who buy houses in your neighborhood and adjust the house to suit that demographic. If most buyers are families with kids, keep all the bedrooms as bedrooms. If more singles are looking to move in, consider staging one of the bedrooms as an office or home gym.

 

If you hire a mover:

• Plan ahead: Make plans with a moving company four to six weeks in advance, especially if you’re moving during the peak summer months, and arrange your move for the middle of the month.
• Do your homework: Check Angie's List www.angieslist.com for companies you are considering and the American Moving and Storage Association www.moving.org to see if they are certified. Ask to see the company’s license issued by the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA).
• Buyers beware: If a mover requires you to pay a big deposit to “hold the dates” or “ensure prompt service,” choose another one. Don’t necessarily pick the lowest price, especially if it is significantly lower than your other estimates.
• Protect your belongings: Be present during packing and take inventory of all your items.
• Update your contact information: The mover should know how to contact you during the move, in case problems arise.
• Find out if you’re dealing with a broker: This is someone who charges you a fee up front and then selects another mover to actually perform the work. If so, find out who the work will be subcontracted to so you can check them out before you sign anything.
• Look for damages: If you notice that a box is damaged at delivery, open it in the movers’ presence and have them confirm the condition of the articles in the box. Note any damage on the inventory form. If you don’t notice damage until later, you have nine months after delivery to file a claim.
• File a complaint: If you’re unsatisfied, file a Household Goods Consumer Complaint with the U.S. Department of Transportation. The mover must acknowledge the claim within 30 days and deny it or make an offer within 120 days.

 

 

 

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