Factors to Consider Before Remodeling Your Home

Brian Ayer

Brian focuses on home sales in the mid-Peninsula and draws upon his deep market knowledge to explain value to buyers and marketing strategies to sellers. His territory from Burlingame to Palo Alto represents some of the best housing stock across an entire spectrum of prices. Brian regularly shares his insider knowledge with relocation clients who target the Peninsula/Silicon Valley, and with sellers seeking to attract the most qualified buyers. Competing and cooperating with some of the top real estate professionals in the industry, Brian has earned the respect of his colleagues because of his ethics and professional demeanor. He remains a top producing agent with Dreyfus Sotheby's International Realty and continues to grow his business through exemplary referrals from his past clients. Brian is a devoted resident of Old Redwood City, one of the most desirable neighborhoods in the entire peninsula. When not with clients, he is regularly found running through the neighborhood with his dog Coda, or in the garden. From a client: “Every couple of years you might meet a person who is exceptionally motivated, highly disciplined, and loyal. Brian is one of them.” "Brian was able to help us understand the difference between valuation and value - what the property is worth objectively, and what it is worth to us. He understood the trajectory of the market, and could really read the dynamics of where the market was going."

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Remodel or Sell?

Having trouble deciding whether you should remodel your place and stay put or search out a more suitable pad? Read on for some considerations which should hopefully help you decide to remodel or sell:

Many of my clients like their house enough, but it’s just not the right one for them. If they could tweak the floor plan, upgrade the kitchen, and build out an extra family room – it would be perfect. Except for the howling dog, the drummer who works practices with his band twice each week, and the constant roar of the El Camino traffic. Or, the neighborhood is perfect, the neighbors periodically bring baked goods – but the half-sized lot won’t allow for the extra bedroom you need and the pool you have always wanted.

Neighborhood is key.

As you always hear, you can change almost anything about a house except for the neighborhood. This is where I always start with clients who aren’t sure. Are you happy where you are, should you have a house more suited to your needs? Are you near a busy street or another nuisance that drives you crazy on a regular basis?

Will you be able to recoup any money invested when it is time to resell?

It’s great that you might want to double your square footage, put in a custom kitchen and that hand-excavated 10,000 bottle wine cellar you have always wanted. But when you go to sell in 10, 20, or (heaven forbid) a job change forces a THREE year plan, will you be able to get out of your home without a decent sized “haircut” to your investment? Look around your neighborhood at what has recently sold. Compare that with how your neighborhood has fared over the years. Do you already have the biggest, most expensive house on the block? If so, you may not want to over-improve your current home beyond the standards set by the neighborhood.

Does renovation make financial sense?

Do you have the cash needed to make the necessary repairs, or are you already maximized on your monthly debt and have no cash reserves to cover any unexpected “bumps” in your proverbial road? Would taking an additional loan put you in an uncomfortable financial position?

Can you endure living through construction?

I probably should have put this at the top of the list because it is where most people will stop reading. Living through construction isn’t fun, it disrupts daily routines, and puts an extra layer of stress upon everybody in the household/construction zone. Renovations can be fun when you’re choosing finishes, but what about when the four month project is going on eight months and you can’t possibly endure anymore take out dinners? I’m not saying all projects go over time and budget, but how would you deal with the situation if it did?

Tally up your responses to these questions and ask others for their input if needed. Only you will have the right answer for your personal situation, but a real estate professional can help with a “before” and “after” valuation to determine if the cost of the improvements/changes to your home would be a wise investment. Your favorite Dreyfus agent would be happy to have a more in-depth conversation with you!