Should I Move or Remodel?
Your home may be feeling quite cramped or it may be dated in every room. Or, perhaps you bought your home with the intention of creating additions and never followed through. At this point, you’re wondering if it’s worth remodeling your home or if you should move and start anew.
Let’s break down your most important considerations, starting with the current housing market in Cleveland, then the most important questions to ask yourself to decide whether you should move or remodel your home.
What Is the Current Housing Market Like in Cleveland, Ohio?
In 2022, we saw rampant housing sales, mostly due to the impending interest rate increases. Many prospective homeowners who were previously on the fence decided to take a leap and buy a home before rates increased without knowing when they’d come back down. With the interest rate peaking in November 2022, the housing market has slowed for most cities, however, Cleveland is in the top five cities that are projected to continue going strong in 2023.
Why Does Cleveland Have the #2 Hottest Housing Market?
Why is Cleveland an exception to the rule? The researchers at Zillow cite high market velocity and job growth as the main driving factors. This means that more houses are, or will be, coming onto the market, spending less time on average on the market, and healthy job growth in Cuyahoga County is helping to spur demand for new homes. These factors point to a healthy sellers' market, for now.
Is a Buyer’s Market on the Horizon?
A slight shift is expected to come in February, after a Federal Reserve meeting to discuss strategy. Mortgage rates will decrease, which is an excellent sign for home buyers. It doesn’t mean Cuyahoga County will be a buyer’s market, but the playing field will be more level. The demand for new homes will increase, more homeowners may be willing to sell, and prices will level out; although the value of homes will continue to rise at a rate higher than the national average as they have for years. All in all, this makes Cleveland one of the best long-term real estate investment locations in the country.
Essentially, Cleveland is about to enter a sweet spot for those who are looking to sell their current home to buy a new home. The market will remain competitive, however, so moving quickly to a home that checks most of your boxes will be imperative.
How Do I Know If I Should Remodel or Move?
Use this list of helpful questions to help you decide if you should remodel your current home or invest in a new home in the Cleveland area:
Are you attached to your current neighborhood?
If you’ve lived in your neighborhood for several years, you may have a considerable attachment to your community: your neighbors, activities, parks, and the like. Moving away from these things could be more difficult than you think. Intrinsic value can be a major deciding factor in whether a new home is worth giving up where you live. Weigh the pros and cons of your neighborhood to get a temperature of how you’d feel leaving your neighborhood.
Are you willing to leave the school district? What about commute times?
Is the school district you’re currently in a particularly high-ranking one? Leaving a great school district could be enough to stay put on its own. Take time to research surrounding school districts to see how they compare.
If your commute to work and school is favorable, a move could mean lengthening your commute and causing daily frustration. It’s another intrinsic value to consider.
Will you be able to find your perfect home in a location you’d like?
To move to an area you could see yourself in, will you be able to find a home that suits your must-haves–square footage, number of bedrooms and bathrooms, yard space, a mudroom, a large kitchen, etc? If the answer is no, you’ll have to be willing to spend more to renovate your new home. If this exceeds your ideal budget, renovating your current home would be the better choice.
Is your mortgage rate going to increase by several points?
Your mortgage rate could increase by four or more percent. This is one of the most important factors for many homeowners and a good enough reason to remodel your home to meet your needs rather than enter a competitive market, engage in a bidding war and possibly lose out on a home that you’ve invested so much energy into.
Are the remodeling updates you need feasible?
Is the extent of the remodel feasible to make your home work better for you? In truth, many homeowners believe that the additions or renovations they’ll need to bring their home up to date, make necessary repairs, and rework the layout to meet their needs are far too many to be feasible–but are they really? The best way to know for sure is to schedule an in-house consultation with a trusted design-build team, explain your home’s challenges, and be open to solutions. You’ll get a rough idea of an estimate and go from there to decide if a remodel is attainable.
When in Doubt, Ask a Professional
Local real estate agents and a trusted design-build firm can help to shape your decision. Moving and remodeling are both arduous endeavors that will take some time to consider all factors.
Payne & Tompkins Design + Renovations has helped guide countless homeowners through this process. We know that your home, or future home, is one of your most important investments. Even if you don’t decide to remodel, we take pride in the trusting relationships we build and aim to make sure you feel confident in your final decision. Contact us to schedule a consultation and let’s make sure you have all of the information you need before making the decision to move or remodel.