Is It Time To Renovate? Or Should You Move?
According to the American Institute of Architects’ AIA Home Design Trends Survey, today’s buyers are looking for more outdoor living space, a home office (or multiple!), a flexible room, an in-law suite, and an exercise/yoga room. If you currently own a home and you’re craving any of those changes, you either have the option to renovate your space or buy a new home that fits your new needs. Both options, unfortunately, require time, energy, and money. The good news is, the cash you need probably already exists in your current home in the form of equity.
Home Equity Is Rising
Homeowners’ equity has dramatically improved because of the increase in home prices over the last two years. If you already own a home, the money you need to remove or buy a new property might be right at your fingertips. However, you must act fast. Waiting could increase the cost of tapping into that equity.
You’ll need to refinance, if you decide to renovate and want access to your equity. And if you decide to buy a new property altogether, you’ll need to mortgage the difference between the down payment and the purchase price of your new home. Since mortgage rates are slowly rising, waiting to take the plunge will only cost you more.
How Much Equity Do You Have?
If you’re ready and eager to either renovate or buy a new home, your first step is to figure out how much equity you have in your current home. In order to do this, you’ll need to know the current mortgage balance of your home, and the current value of your home. If you contact an appraiser, you’ll likely have to pay several hundred dollars to find out the current market value of your home. A better option is to contact your favorite Realtor (that’s us! The Rachel Adams Lee Group) who can give you a quality assessment for free.
If you’ve thought about renovating or buying a new home over the past year, now might be the perfect time to pick a direction and start making moves.
Reach out if you have any questions!