Remodeling vs. Moving
The Colorado Springs housing market has been crazy for more than 5 years now.
Mortgage interest rates are still historically low and looking to stay that way for the foreseeable future. Know what else is historically low? Housing inventory in the Springs. Because of those 2 factors, houses below about $650k are selling blazingly fast and often above asking price. Whatever house comes on the market sells extremely fast. It’s the epitome of a seller’s market and it's not a blip on the radar. It's been this way for more than 5 years now.
And on top of all that, “equity locusts” from out of state and Denver continue to swarm with no end in sight. Who can blame them? Colorado Springs is a great place to live and our property values in 2021 are still substantially lower compared to places like California or Oregon. So they can pay cash and still come out ahead.
All this means that its really easy to sell your house and really difficult to find a good deal on your next one.
So, what can you do if you’re wanting something different without moving to West Virginia? No offense West Virginia, but you do have the lowest property values in the country. Also, we hear you have nice country roads.
Answer: Remodel
By the time that most folks finish getting their house ready to go to market, they look around and say to themselves “wow, the place looks great, maybe we should stay”. Well... maybe you should.
Updating your kitchen, your master bathroom, a home office, or the basement can substantially increase the value of your home and increase your equity in the home. Most people wait until the final year in their house to make those updates. This means they don't wait long enough to get the full return on their remodeling investment and they don't get to enjoy their beautiful new space. Depending on the scope of the project and how it impacts your home's value, it typically takes a few years to come out ahead on a remodeling investment.
But there are examples of remodeling investments paying off sooner rather than later. The best example of this is adding square footage to your home by finishing your basement. More specifically, adding a bedroom (or two), and a bathroom. Adding square footage and adding to the number of bedrooms/bathrooms causes the value of your home to jump up like no other project can.
If your basement is already finished, you are by no means out of luck. Every experienced real estate professional will tell you in unison that the two rooms that close the deal are always the kitchen and the master bathroom.
If you do choose to remodel, you might also consider taking out that new equity and putting it to use somewhere else. It's entirely possible that you could break even on a basement finish by refinancing at your new square footage after its done! Of course, consult with a financial advisor about the options, pros, and cons in your particular financial situation before making any decisions, but that option is likely on the table for you.
And if after a few years, you're still feel like you're wanting something different, you can take your house to market at a higher price point having updated your home, knowing that you've been patient enough to see a return on your remodeling investment, AND having a few years to actually enjoy your home for yourself.
Besides, moving is the absolute worst. Especially, during a pandemic.
So, would you remodel your kitchen, bathroom, or basement first? Feel free to give us a call to talk about your next project. Our estimates are always free and customized specifically for your project. We don't believe in putting pressure on people. We believe in treating you like we want to be treated, providing you with an exact estimate and equipping you to make a fully informed decision.
HOMEfix is unique in that once we provide you with an estimate, that amount will not change before, during, or after the project unless you change the scope of work. We don't believe in change orders. Our estimates are valid for 60 days after delivery.
Call 719-749-1788 to request an estimate in Colorado Springs and have a great day today friend.
Congrats! You made it to the end of an article. Seize the day knowing you are someone who finishes what they started. Go you!
