How much more should I spend to upgrade my new home?
The decision many folks struggle with especially in the Tampa Real Estate market whether they should remodel their current home or just make the move. There are specific guidelines in Tampa Real Estate that I have found work through the years that may help make this decision easier.
Are you planning to stay in your Tampa home for at least five years?
If you plan to do a major remodeling project to your home, be prepared to stay in the property for at least five years. This will require some serious thought, as to what to do that will enhance your enjoyment of the property and hopefully get you out with most of the money you put into the home.
What upgrades are worth the return in the Tampa Real Estate market?
Nice kitchens and bathrooms can run into thousands of dollars, of which you may only recoup 60% of the purchase price of these when you go to sell. New hardwood flooring can be the same, although flooring usually brings a better return than a new kitchen or bath. The least expensive fix is paint which usually get you more money than what you paid to do it. Adding onto a property is the most expensive and the least return that you will get for any remodeling project. If you were considering adding onto a property, you will need to think very long term as to how long you will be there. I have shown many homes where the porch became a family room and added no value to the house at all. Several years back I had a couple that added on a whole wing to their house, to the cost of $150,000. At the time I told him you need to stay there for a minimum of seven years for you to get any enjoyment out of the house because you will not get enough money for the remodeling. Because the addition did not solve the problem that they thought it would, they ended up moving a year and a half later. The house only sold for 25,000 more than what it would have without the addition
Many times when people are faced with this decision, they go looking for a new property and that may be the best choice for them. I have found that one must spend at least 25% more than the current value of their home to find any place that will make it worth for them to move, unless it is for completely personal reasons. If you have a house that is valued at $500,000, you would need to buy a house that cost at least $625,000 or more for you to see any real advantage to making the move. This will assume that you will be in the same general area. For example if your home is in the Carrollwood area and you want to stay in the Carrollwood area you will have to use this formula or you just will not find anything that will make it enticing for you to buy it. However if you were moving from South Tampa, with a Home that was valued at $500,000 you could probably move to the Carrollwood area and get a much nicer house for the same price and be very happy with it. Likewise if you are in the Carrollwood area and your house is worth $500,000 you could move north of Van Dyke and probably find a property that would be worthwhile for the same kind of money. For example; there is a home for sale in Birchwood Preserve off Dale Mabry that is over 4,000 sq. ft with 6 bedrooms and 4 baths built in 2019 for just over $600,000. Compare this to the Henderson Park area, zip code 33629, which has a home for just under $650,000 that is 1900 sq. ft and built in the 1960s. ZIP Code 33629 is very convenient to all of the restaurants and other activities that Tampa has to offer. The trade-offs are going to be what you will get for a house, commute times and possibly school system.