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The Big Question: Should You Renovate or Move?
Renovate or Move?
The last 18 months changed what many buyers are looking for in a home. Recently, the American Institute of Architects released their AIA Home Design Trends Survey results for Q3 2021. The survey reveals the following:
- 70% of respondents want more outdoor living space
- 69% of respondents want a home office (48% wanted multiple offices)
- 46% of respondents want a multi-function room/flexible space
- 42% of respondents want an au pair/in-law suite
- 39% of respondents want an exercise room/yoga space
If you’re a homeowner who wants to add any of the above, you have two options: renovate your current house or buy a home that already has the spaces you desire. The decision you make could be determined by factors like:
- A possible desire to relocate
- The difference in the cost of a renovation versus a purchase
Finding an existing home or designing a new home that has exactly what you want (versus trying to restructure the layout of your current house)
In either case, you’ll need access to capital: the funds for the renovation or the down payment your next home would require. The great news is that the money you need probably already exists in your current home in the form of equity.
Home Equity Is Skyrocketing
The record-setting increases in home prices over the last two years dramatically improved homeowners’ equity. The graph below uses data from CoreLogic to show the average home equity gain in the first quarter of the last nine years:The Big Question: Should You Renovate or Move? | MyKCMOdeta Kushi, Deputy Chief Economist at First American, quantifies the amount of equity homeowners gained recently:
“Remember U.S. households own nearly $35 trillion in owner-occupied real estate, just over $11 trillion in debt, and the remaining ~$24 trillion in equity. In inflation adjusted terms, homeowners in Q2 had an average of $280,000 in equity- a historic high.”
As a homeowner, the money you need to purchase the perfect home or renovate your current house may be right at your fingertips. However, waiting to make your decision may increase the cost of tapping that equity.
If you decide to renovate, you’ll need to refinance (or take out an equity loan) to access the equity. If you decide to move instead and use your equity as a down payment, you’ll still need to mortgage the remaining difference between the down payment and the cost of your next home.
Mortgage rates are forecast to increase over the next year. Waiting to leverage your equity will probably mean you’ll pay more to do so. According to the latest data from the Federal Housing Finance Agency (FHFA), almost 57% of current mortgage holders have a mortgage rate of 4% or below. If you’re one of those homeowners, you can keep your mortgage rate under 4% by doing it now. If you’re one of the 43% of homeowners with a mortgage rate over 4%, you may be able to do a cash-out refinance or buy a more expensive home without significantly increasing your monthly payment.
First Step: Determine the Amount of Equity in Your Home
If you’re ready to either redesign your current house or find an existing or newly constructed home that has everything you want, the first thing you need to do is determine how much equity you have in your current home. To do that, you’ll need two things:
- The current mortgage balance on your home
- The current value of your home
You can probably find the mortgage balance on your monthly mortgage statement. To find the current market value of your house, you can pay several hundreds of dollars for an appraisal, or you can contact a local real estate professional who will be able to present to you, at no charge, a professional equity assessment report.
Bottom Line
If the past 18 months have refocused your thoughts on what you want from your house, now may be the time to either renovate or make a move to the perfect home
Start by finding out what your home should sell for. Use our FREE Custom home value - Comparative Market Analysis (CMA). We'll create a FREE Custom CMA, not some computerized "guess-ti-mate" created by a robot on these national sites. Go to www.MDHomesValue.com today, we'll create your CMA for you in 48 hours. No Pressure, no obligation, no committment. Just solid info.
Maryland Real Estate Professionals Real Estate Outlook
Central Maryland Housewarming Extravaganza
Welcoming You To Your New Central Maryland Home
Congratulations on your decision to purchase a new home! 🏠 There’s something magical about stepping across the threshold into a space that’s truly yours. The scent of fresh paint, the echo of footsteps on hardwood floors, and the promise of countless memories waiting to be made—it’s a feeling like no other. And what better way to celebrate this milestone than with a Free housewarming party?
That's correct, when you work with a Maryland Real Estate Professionals team member and one of our preferred lenders, we will provide you with the housewarming gift of a housewarming party!
Why a Housewarming Party?
A housewarming party isn’t just about showing off your stylish decor (though that’s definitely part of it!). It’s a chance to open your doors wide and invite friends, family, and neighbors to share in your joy. Here in Central Maryland, we know how to throw a memorable gathering—one that combines warmth, hospitality, and a dash of local flair.
A Housewarming Party Is The Perfect Venue
When you work with a Maryland Real Estate Professional Team Member and on of preferred lenders to purchase your home, we will give you up to $500 towards a housewarming party! Now isn't that an amazing housewarming gift!
After we help you purchase your home, you choose a date that suits your schedule and gives you enough time to settle into your new abode. Maybe you’ve hung up your favorite artwork, arranged the furniture just so, and found the perfect spot for your morning coffee. Now, let’s set the scene for your housewarming party. Whether you have a cozy townhouse in Annapolis, a chic loft in Baltimore, or a sprawling estate in the Frederick County countryside, your home will be the star of the show.
Invitations For This Amazing Housewarming Gift That Spark Excitement
If you provide the Maryland Real Estate Professional team member your guest list, we will send out digital invitations to your guests. HAKUNA MATATA - We want to keep it hassle-free by using platforms that allow you to save invitations as images on your phone. A quick text message with all the details will have your friends marking their calendars. Remember to choose a range of time (say, 3-6pm) rather than a strict starting time. An open-house style party lets guests come and go as they please, without worrying about being late.
Delicious Bites and Sips
Now, let’s talk about the heart of any gathering—the food! Maryland Real Estate Professionals and our preferred lender will provide you with a housewarming gift, so that you will be able to purchase food for the party! For a housewarming party, opt for dishes that are easy to prepare ahead of time. Think bite-sized nibbles, colorful charcuterie boards, and refreshing drinks. Here are some ideas:
- Charcuterie Board: Arrange an assortment of cheeses, cured meats, olives, and fruits. Add some crusty bread and gourmet crackers for a delightful spread.
- Welcome Home Cocktails: Create a signature drink for your party. How about a refreshing Maryland mule with local ginger beer and a splash of bourbon?
- Sweet Treats: Offer a selection of cookies, brownies, or mini cupcakes. Bonus points if they’re homemade!
Maryland Real Estate Professionals Housewarming Gifts That Wow
As guests arrive, greet them with a warm smile and perhaps a small token of appreciation. Here are some thoughtful housewarming gifts ideas:
- Personalized Cutting Board: Engrave it with their new address or a sweet message.
- Custom Home Map: Capture the location of their new home in a beautiful print.
- Indoor Plants: A touch of greenery adds life to any space.
- Welcome Home Sign: A charming addition to their entryway.
- Cookbook: Inspire their culinary adventures in the new kitchen.
Our friends over at DC Laser can help you come up with some amazing housewarming gifts! Just go to www.dclsr.com
Central Maryland Vibes
Maryland Real Estate Professionals has Central Maryand Covered! We know that Central Maryland is a place of contrasts—where historic meets modern, and cityscapes blend with natural beauty. Take inspiration from the region as you decorate your home. Incorporate nautical elements from Annapolis, embrace the industrial chic of Baltimore, or infuse your space with the tranquility of the Chesapeake Bay of the vast countryside of Caroll, Frederick and Washington Counties. Central Maryland is a beautiful place to work, live and play!
Memories in the Making With The Maryland Real Estate Professionals Team!
As the sun sets and the laughter echoes through your rooms, remember that this housewarming party is more than just an event—it’s the beginning of a chapter. A chapter filled with shared meals, cozy movie nights, and impromptu gatherings on the patio. So raise your glass, toast to new beginnings, pass out those housewarming gifts and welcome everyone to your Central Maryland haven.
Whether you’re hosting or attending, a housewarming party is a beautiful way to celebrate the journey of finding and creating a home. Cheers to you and your fellow Marylanders! 🥂🏡 Remember when you work with Maryland Real Estate Professionals, you are working with true professionals, who will look out for your best interest when you are buying your dream home! And don't forget that if you are looking for amazing ideas for housewarming gifts, you want to reach out to DC Laser. They are creative and have wonderful housewarming gifts!
