Moving or Remodeling, Which is Right For You?
Are you torn between remodeling your current home and moving? If yes, then you need to consider various factors that are important to your decision. Here are seven questions to ask yourself.
- Could You Be Over-Doing the Remodel?
When deciding whether to move or remodel, you need to weigh the risk that by renovating, you will over-do it relative to other houses in the neighborhood. A home that has been over-improved will not have as high value in its current neighborhood as it would have in a location with similar houses. When you live in a neighborhood with smaller houses or starter homes, carrying out an extensive renovation or adding larger additions might fail to offer a return you might expect. Over-improving might fetch you a lower return on investment when the time to move comes. In situations like this, it may be more cost effective to update your furniture opposed to home renovations. Changing your interior from traditional, to say, stressless-furniture could have a significant impact.
- Will You Gain Back the Investment?
Prior to deciding on moving or remodeling, attempt calculating the investment return you will get on either choice. In the case of remodeling, determine the average profits you might make when the time comes to sell the house. A majority of home renovations fail to pay for themselves regarding a higher sales price. Some upgrades manage to get 80 to 90 percent of the expense, while some barely cover 50 percent of their cost. In case you consider listing the current house and getting another one some other place, determine whether the period you might stay in the new place will enable you to recover the mortgage and moving costs. Also, consider that new home constructions are on the decline due to unfavorable tax policies and high mortgage rates that result to unaffordability. The increase of new home prices will slow down.
- What’s the Period of the Renovation?
Numerous people fail to consider the fact that renovation includes a lot of energy and commitment in the long-term. For instance, a kitchen upgrade that involves new floors, appliances, countertops, and cabinets can take between three and six months. In case wiring, plumbing, and ductwork require being addressed, the renovation could take even longer. A bathroom upgrade can take between two and three months while adding an extra room can take between one and two months. In case of purchasing a new house, one can move in as soon as the same day.
- Is Moving the Only Solution?
You need to look at the situation in your current living space. Consider if there are problems like intolerable neighbors, a below-average school, or a congested environment. This might limit your options to moving. You could also be unable to afford the current living space, and the only way out is to find another home that you can afford. A 2016 study revealed that over 53 percent of Americans have a hard time making housing payments and have resulted in making trade-offs and sacrifices to cover expenses.
- More Rooms or More Room?
Numerous homeowners move to new homes due to the need for more space. But a renovation that results in an extra room without adding square footage can prevent some people from moving. A three-bedroom home that is spacious can also be renovated into a four-bedroom home and let the family acquire a more efficient layout that does not need them to move. This can be less costly and disruptive in comparison to moving.
- Is Your Budget Realistic?
Planning a realistic budget is vital when deciding whether to move or renovate. An accurate budget is significant when you have opted for a renovation. Numerous homeowners fail to know their wants. They might have a budget that works but change their mind mid-way, and the budget shoots up above what they can afford.
- What is Your Heart Telling You?
Consider your emotional connection to the house and the neighborhood. If you have a strong bond to the neighborhood and powerful emotional connections to your home, you can consider upgrading your current home. According to research, 70 percent of people who are torn between moving and renovating end up upgrading.
Whichever decision you make, you need to be sure that your budget can cater to it and your needs will be met. Ensure you get maximum value for money.