Remodel or Relocate?
Do you love your home, but it just isn’t meeting your needs anymore? Perhaps your family has grown, your aging parents are moving in or you’re working from home now. Would it be better to renovate your current home or buy a new one? Here is a list of questions to ask yourself to help you think through your decision.
1. Which option costs more?
To estimate the price of a home renovation, add up the cost of permits, architectural planning, materials, labor and financing. You could get a lump sum home equity loan or a Home Equity Line of Credit (HELOC), which allows you to withdraw funds as needed for a period of time.
In order to ballpark how much money it would take to move, consider the costs of selling including making repairs and updates, the real estate agent’s commission and title insurance. Also factor in the cost of moving, fixing up your new home to your tastes and the size of your new mortgage payment.
2. Are there things you love about your current home that you want to keep?
How important to you is it to keep the things you love about where you live now such as your neighborhood, school district, proximity to family and friends, a short commute to work or even the memories you’ve made in your home? If the positives outweigh the negatives, it might be worth exploring if a renovation could solve your issues with the current setup.
3. Are there serious issues that a renovation couldn’t fix?
Conversely, in certain scenarios no matter how fantastic your remodel is, it won’t solve underlying issues. You can’t renovate your way out of noisy neighbors, an unideal location, an undesirable school district or a small yard.
4. What kind of disruptions can you manage?
Both moving and renovating have their inconveniences. If you decide to move, you’ll have to keep your house tidy during showings, pack up your belongings, book a rental truck or a moving service and unpack your new home. On the other hand, home renovations can span anywhere from a few weeks to several months, depending on the projects involved. If you’re remodeling essential spaces in your home that you use every day such as your kitchen or bathroom, you’ll have to figure out how to get by while they’re out of commission.
After comparing the costs of both options, prioritizing which factors are most important to you and anticipating the potential disruptions, hopefully the right choice for you and your family will become clearer. No matter if you decide to move and need a new mortgage or if you decide to stay and need a home equity loan or line of credit, we’re here to help.