To renovate or not to renovate?
Choosing to renovate your old home or relocate to a new one is not an easy decision. There are some questions that you can ask yourself to help you determine the right answer.
The basic rule of renovation vs. relocation is whether your present home is providing you with a solid reason to NOT move.
- Is your home’s location important for you in regards to school or office?
- Is it large enough for your growing family?
- Do you have some emotional ties to the home that make it hard for you to relocate?
If you can answer these questions, you will easily come up with an answer of whether to relocate or renovate.
Most homeowners are looking to renovate rather than move and here’s why:
Cost of Renovation vs. New Construction or Purchase
Prices of new homes have skyrocketed in the last few years. We see record values when it comes to new homes.
Many families cannot afford to buy new homes and would rather renovate their existing homes than pay the price to purchase a new home.
Families used to buy a ‘first’ home that they would eventually move out of when their families had grown. Due to the sharp increase in the market price of new homes, many families are still living in their ‘first home.
Other costs associated with buying a new home include:
- Closing Costs
- Home Appraisal
- Home Inspection
- Homeowners Association Fees
- Homeowners Insurance
- Loan Origination Fee
Cost of Unknown Expenses in New Homes
The cost associated with buying a new home in regards to unknown repairs and extraordinary expenses is another reason why many families feel more comfortable renovating their present home.
When you are buying a new home, there is a certain risk associated with unknown repairs or issues that might not appear during the initial inspection. Any homeowner can tell you that one of the biggest concerns when buying a new property is finding out after purchase that major expensive repairs are required.
These could include:
- Roof Repair
- Water Heater Repair
- Foundation Repair
- Siding Repair
- HVAC System Repair
- Sewer Line Repair
- Water Line Repair
The advantage of renovating your existing home is that you know your home and have confidence that no unforeseen major repairs will be required.
Wanting to Stay in the Same Location
So a major reason why homeowners opt to renovate is that they want to stay in the same neighborhood and location.
We think of buying a new home but do not consider other issues if we move to a new neighborhood. We may have a longer commute to work. If our school district is tied to our existing home, are we ready to change schools? We have a support system in place in our present neighborhood; are we ready to leave that?
These are all questions that we should ask before deciding to purchase a new home. If you are unable to find a new home in your present neighborhood, then the decision to move will affect other aspects of your life.
High-Quality Contractors Available
In the last ten years or so, the renovation industry has seen great developments. You now have contractors that are available for a renovation that specializes in specific niches and areas of the home.
The potential to change the entire look of your home is available. But you need to know exactly what you want from your contractor and how to select a contractor you can trust. For this reason, it is a good idea to do some research or join a remodeling boot camp. This way, you can know what you should not overlook and learn step by step how to avoid a renovation disaster.
Better Return on Investment
One of the biggest benefits that you will get when renovating is a better return on investment. If you know your budget and hire a good contractor, you can get more done in less money.
If you decide to renovate your home and make some small improvements, you can raise the value of your property considerably. But you need to make sure you do not fall into the money trap that might happen if you hire the wrong contractor.
The kitchen has the higher return on resale, followed by roofs and windows. Below are some numbers in regards to ROI for kitchen remodeling:
- Minor Kitchen Remodel: 75-83%
- Renovation/Remodel: Average Cost Recovery
- Major Kitchen Remodel: 70-78%
However, if you are moving to another country, relocation may be a better choice than renovation. Since you are not familiar with the country, its market, and its people, it’s best to hire an international moving company to help you find a good home.
Can Customize to Your Heart’s Content
One of the biggest advantages of renovating your present home is that you can personalize it however you want to. If you want to change flooring, walls, or cabinets, you can. With a new home, this is not always the case, as you will have to work around the present floor plan, colors schemes, and installations.
With renovating a new home, you can do small tweaks and upgrades within your budget that will bring you a higher return. These changes are simple, easy, and affordable. You can check online for great ideas for home improvement.
Difficult Finding a Home in Good Neighborhood
Trying to find a home in a new neighborhood is very difficult. The problem is that many new neighborhoods have great homes, but it is difficult to find one that you think is perfect. Houses get sold very quickly in good neighborhoods.
The problem with old neighborhoods is that homes have older construction. This can be a problem if you have to spend money to upgrade the home. Many old homes require major renovations to try and make the home look modern.
So why not spend that money renovating your own home that is in a nice familiar neighborhood?
Is Renovating a House Worth It?
Renovating your home can be a great experience and affordable if you hire the right contractor and plan it out. It is definitely worth it and cheaper than buying a new home.
Having a clear idea of what exactly your budget is and what you want to renovate will prevent you from incurring unnecessary costs when renovating.