It’s the second week of the new year.  I usually take off the first week because of family, company, and snow.  Now, this year we had them all, so we did get a bit sideways.

My practice still had a handful of active listings left, and I swear the demand for showings remained pretty high, so there were a lot of houses sold, even in the nasty weather.

The Good – A good part of this market this year, was that it was a bit like a feeding frenzy.  People came out of the woodwork to buy houses.  Many people who were able to sell their own homes, did so.  Fast.  They were delighted.

The value of almost all homes around here had gone up tremendously, so that, especially when combined with a huge savings of commission, put a smile on a lot of faces.

 

 

 

The Bad – OK, the old house is sold, and in record time.  It was sold fsbo with a lot less commission, so there was a lot more money left in the seller’s pocket.  More smiles on faces.

The Ugly – Actions do have consequences, the seller soon learns.  In a rush to take advantage of the larger equity in his house, the seller realizes he has no place to go after closing.

The other houses that are still for sale are equally high-priced, and rent for houses and apartments are over the moon expensive.  Now maybe a bit late to plan ahead.  You probably should have done that EARLY in your home sale process.

What if Moving Doesn’t Make Sense Right Now?

In addition to being a great time to sell your house, it’s also a great time to borrow some money and work on your current house.  You have open to you a couple of alternatives to selling your house and moving.  To explore all of the possibilities are beyond the scope of this article, but let me get your thoughts started.  Three of the reasons people sometimes move are to get more room. to get less room (and smaller utility bills) and to get trendier or more functional pieces and parts.  So consider these.

Add on – Let’s grab an extra room or two for stretching out.  Add on a room.  Take in the garage or the porch. Finish the basement or attic.  This is a good time to sketch out your ideas on paper and get a couple of estimates.  You can get more estimates later, but for now, we are looking at feasibility.

This is probably one of the most expensive choices, but it will add square feet to your home (and its value as well) so open a dialogue with your banker or your current mortgage lender.  Some lenders are possibly already sending you letters encouraging you to take advantage of your current house value and ongoing relationship.

Your bank (branch) is also in a good location to know the neighborhood values., so talk to them too.

The keyword here is a line of credit loan rather than a personal loan or credit card.

 

 

Remodel kitchen – My wife and I went through this a few months ago, and it resulted in a pretty great custom kitchen.  We used a big box store credit plan of 6 months interest-free and had our own selected people do the labor and the installation.  Word of caution, though.  My calendar and your calendar and the calendar of kitchen artisans are quite different.  This project will take three to four times as long as everyone tells you it will.

Right now the slower supply chain doesn’t help matters either.

Remodel a bath – Ditto on the bath.  We did the bath before we did the kitchen.  We did the guest bath, and it ended up looking so great, that I think on some level, we wished we had done our primary bath first.  We bought the cabinetry and fixtures on the no-interest plan and paid our craftsmen separately.  It still took forever.

Another hint.  We were much less satisfied by the gen pop of workers working with the vendor store than we were with our own people-finds.

Go for new windows and or doors if just to cut your utilities or be more comfortable.  Extra insulation where possible is good too.  Fireplaces, gas logs, green thermostats, and water heaters can add up to make your house feel and act like a new one.

So make it happen.  If you waited too late to sell, or if you’re just not ready yet, it’s not the end of the world.

(Take this FREE FSBO QUIZ to see if you should even try selling your own house.)