Homeowners in Long Beach already know they have the upper hand when it comes to housing options in today’s market. Many have seen their property values increase as much as 6.9% in the last year, giving homeowners a powerful tool at their disposal – equity. Equity is simply the difference between the amount owed on a property and its value. Homeowners can use their equity to perform a major remodel to their existing home or sell their home and use the equity to build a custom home from scratch. Using the pros and cons for each option helps you evaluate the right choice for your situation.
Major Remodel
Pros
- You can remain in your home. A home is more than just a place to put your stuff. It’s a place where families make memories and friends share their lives. Some neighborhoods develop a close community that is hard to replace. A remodel to your home allows those relationships to continue and to create more memories.
- Adds value to your existing home. Updated kitchens, bathrooms, and living areas produce more efficient spaces and create places of peace, community, and comfort, but they also increase the home’s overall resale value.
- Customize your living space to meet your needs. The layout of a home can give away its age. Closed floor plans, outdated lighting, inefficient windows and doors, aging HVAC units, cabinets, and flooring are just a few of the areas where older homes need attention. A major remodel allows the homeowner to reimagine these areas how they want.
Cons
- Inconvenience during the remodeling process. While the scope of the project, availability of the materials, and the contractor’s schedule will dictate the timeframe, it generally takes anywhere from 4-10 months to complete a major remodel. That’s a long time to adjust your lifestyle. Mark Grisafe knows how the permit process alone can add to the timeline project. Grisafe says, “At our Long Beach architecture firm, we’ve had several clients come to us after months of trying to get approvals from their city planning departments on their own!” Spending the extra money on a professional architect is worth it when it comes to a major remodel.
- It may be time to leave the area. While some neighborhoods have a wonderful sense of community, others are heading in the other direction. Investing in a home that is no longer in a desirable area is not money well spent.
- Not everyone will love your customizations. We’ve all seen house flippers on TV and how individual style can easily make or break a home’s resale value. Red velvet wallpaper in the bathroom may be your style, but it’s not for everyone. A remodel, especially a poorly designed and executed one, may lower the value of your home.
Build a Custom Home
Pros
- You get the exact home you want. Whether it’s a Ranch Style, Modern Farmhouse, Craftsman, Spanish Colonial, French Chateau, Tudor, or any other style or combination, you get to design it. However, designing and building a custom home requires a team of professionals that can navigate the complex process from beginning to end. Grisafe Architecture Inc. in Long Beach explains a good architect uses a five-stage process for projects: Design, Development, Documentation, Approval & Bidding, and Construction Administration.
- You choose the location. Of course, price and availability may limit your selection. Still, when building a custom home, the homeowner decides to live on a mountain or near the ocean, a hill or valley, acres of land, or a smaller lot for easy maintenance. Regardless of location preference, your home is right where you want it.
- New homes are more efficient and require less maintenance. Custom homes come equipped with the latest energy-efficient appliances, HVAC units, roofs, windows, doors, and lighting, saving money for years to come.
Cons
- Custom homes are expensive. In addition to purchasing the property, designing the house, and obtaining all the required permits, construction costs can range anywhere from $300 to $600 per square foot. Tack on the landscaping, hardscaping, and decor, and it really starts to add up.
- Construction is complicated. Don’t underestimate the complexity of obtaining a new construction loan, filing for all the required permits, and finding the right contractors.
- It takes a long time to build a custom home. Depending on the project’s scope, the property’s preparation, and the availability of materials and contractors, the average time to construct a custom home ranges from 7 months to 2 years.
It makes sense to take the time to plan like your home is one of your most significant assets – because it is. Whether you decide on a major remodel to your existing home or it’s time to design a new custom home, start by evaluating the pros and cons to make informed, intelligent decisions. Once you’re ready to move forward, find a good architect and follow the five-stage process for projects: design, development, documentation, approval & bidding, and construction administration. In the end, you’ll have the home you dreamed about, in the perfect location, to make memories with the people you want.
