Before you engage in a remodeling project, you want to decide how long you plan to stay in the home and how the home compares to other homes in the area or neighborhood. You probably don't want to draw equity out of your home if you plan to sell in less than three years. Price is the strongest force when selling a home and you do not want to price your home higher than comparables in your neighborhood and your area.
Typically, remodeling makes sense when interest rates are down and you can get an equity line of credit at a low rate. When interest rates rise, the real estate market slows down and most of the time, the remodeling frenzy slows noticeably down. |
