If you own a home, you may be thinking about moving if the house no longer meets your needs. But there is another option; you can renovate and make improvements to your existing home. The big question is whether to renovate or relocate. Here are some things to consider to help you decide.
Deciding to Renovate or Relocate: Factors to Consider
The Needs of Your Family
What do you need in your home? If you want a home office, a bigger kitchen, or a luxury bathroom, renovation may be the smarter choice. The cost of renovating one or two rooms will be less expensive than moving to an entirely new house. You’ll end up with a more functional home and improve your property value.
However, if you need more space for a growing family and would prefer a larger backyard, it would be impractical to renovate your current home. The size of your property will limit the square footage you can add, and the costs for major changes could also be higher than if you were to buy a new house.
Comfort May Determine if You Renovate or Relocate
Will you be comfortable living in your home during the renovation? Are the needed upgrades going to be a manageable part of your day-to-day life? If updates are fairly minor, renovation may be the best choice for you and your family.
Major renovation projects are time-consuming, noisy, and messy. If you’re not ready to sacrifice your comfort while upgrades are being made, purchasing a new home is the better option.
It may take you months to find what you’re looking for, but you’ll be able to choose the best property for your family. Although the moving process is a lot of work and can be stressful, many people find that moving is minor compared to living in a construction zone for months while renovations are happening.
On average, you will spend between $10,000 and $30,000 renovating the bathroom or kitchen. If you’re thinking of relocating, buying a new home can also be expensive. You’ll need to be prepared with a down-payment, escrow, closing costs, and other related costs like an appraisal and home inspection.
If you own your current home, you may be able to sell and put that money toward your purchase. But, depending on the condition of your current home, you may still need to tackle renovations and repairs before putting it on the market.
Talk to a real estate agent about the types of improvements that would help your home sell and how long it generally takes to find a buyer in your market. Are you prepared to spend thousands of dollars on renovations and wait weeks or months to find a buyer? If your budget allows, you may have the option to move into a new home and wait for someone to buy the old house.
Choosing between renovation or relocation comes down to many factors. If your needs can be satisfied by a renovation, go for it; this is an opportunity to create the house of your dreams. If what you want from a house just won’t work on your property, it may be time to begin shopping for a new home.