The HGTV show “Love it or List It” strikes a chord with many young families, and with good reason.  It is a question many of my friends ask themselves.  Often, young newly married couples settle in quickly to married life, and buy a house that meets their needs at the time.  And, like many first time homebuyers, they may be moving from a tiny apartment so that small, charming two bedroom home seemed like a ton of space at the time.  But, a few kids later, they quickly find the walls are closing in on them.  Sometimes, they really like their block, love their neighbors, and feel reluctant to move.  You may find yourself facing a similar dilemma.

So, should you “Love It or List It”? How do you figure it out?  Here are some basics to consider:

1. Decide what your needs and wants are. If you bought a 2 bedroom, 1 bath bungalow five years ago and now have 2 kids, you may feel like a hamster in a cage.  What are your needs?
   • Adding bedrooms? How many? Do you want the bedrooms all on the same level, or is that not an issue?
   • Adding baths? How many? Keep in mind that baths near bedrooms add the most value.
   • Adding a family room?
   • Finishing the basement?
   • Expanding to an eat-in kitchen?
   • Other?
2. Talk to a few contractors and get estimates for the work that you’re considering. Have them present several different options for the work you’re considering. Then add in at least a 10% cushion for both time and budget.
3. Talk to the town. Do you need a variance for the work you want done? How much time and expense would that add?
4. Consider your ability/willingness to live through renovations. Would you be able to, or even want to, live in your home during renovations?  Would you need to move out and rent? What cost would that add?
5. Run some numbers to determine ROI for your renovation. Would the money you’re spending on the renovation be worth it? Are you over-improving for your area, or would your renovations be in line for your area? Also keep in mind that every dollar spent on renovation does NOT add a full dollar of value to your home.  This Cost v. Value chart gives a rough idea of how much value you can expect to gain from renovations.  Talk to a local realtor to help you work through these numbers.
6. Get a pulse on current conditions in your local real estate market. How quickly/easily could you sell your home now as it is?  For what price? How easily could you find your ‘upgraded’ home in the current market? What is the difference between what you could get for your current home and how much it would cost to buy your ‘upgraded’ home? Again, a local realtor will be able to help you answer these.  Visit open houses in your area to get a sense of what’s on the market. now, for homes similar to your current home, as well as homes similar to your ‘upgraded’ home.
7. Here’s one only you can really answer: how much do you love your current location? Are you and your neighbors BFF’s and all the kids on the street play together? How much is that worth?  Could you find a block with a similar vibe somewhere else? Or, is there truly ‘no place like home’?

Hopefully by now, the path forward should be clear.

Have you considered whether you should “Love it or List It”?  What did you decide and how did it go?  Add a Comment and let us know!