Sell or renovate: What’s the best move for you?
Many people wonder whether they should sell or renovate their home when it no longer suits their needs.
Here are a few things to consider before making this decision.
Cost of buying vs. cost of renovating
First, you need to figure out how much both options will cost. Then you’ll be able to decide whether you’d be financially better off renovating or moving.
1. Renovation expenses
- To estimate how much the work will cost, decide what needs to be done, then ask contractors for detailed quotes.
- Anticipate labour and material costs, as well as costs for decorating the renovated space.
- Be sure to budget for unexpected costs, because they often arise during renovations.
2. Moving expenses
- First, make a note of the costs involved in selling your home (DuProprio registra tion, notary fees, getting a location certificate, if necessary).
- Add in the moving expenses and service connection fees (e.g., phone, Internet and cable).
- Don’t forget to include the costs involved in buying the new home (welcome tax and the inspection).
- Of course, you also need to consider how much more you will have to pay to buy the home that better suits your needs.
Sometimes it is less expensive to buy a new home than having renovations done. It all depends on the extent of work that needs to be done. Compare both options carefully to avoid any nasty surprises.
What are your chances of selling?
If you're leaning toward moving, ask yourself what the chances are of selling your home as is. Are potential buyers likely to be put off by the amount of work needed? Remember that most people want to buy a turnkey home and steer clear of properties that are “perfect for DIY enthusiasts.”
You could also find out how robust the housing market is in your area and what the average time to sell is. This will give you a good idea of whether selling would meet your short- or long-term needs.