Should You Move or Improve
Considering a remodel?
Selling a home can cost thousands of dollars by the time you total up the closing and moving costs, and thousands more if you have to outfit your next home with new appliances and furniture. Remodeling, on the other hand, does bring its own expenses, but ultimately can make your house into a home you love.
If you don’t have to sell immediately, weigh your decision carefully, especially if the market is slow and chances are high you won’t get top price for your home.
Pros and Cons: Should you improve your current home or move to a different one?
Pros of remodeling
- You can stay in your home and neighborhood
Let’s face it, after living in a home for a few years it’s pretty easy to get attached to location, neighbors, nearby schools and parks, and that feeling of home. When you remodel you get to keep the emotional connection.
- It’s often less expensive than buying a new home
When you consider the moving and financing costs associated with relocating you can often do a pretty significant makeover of your current home (particularly if you don’t plan structural changes) for far less than the overall cost of moving to a new home.
- You can get exactly what you want
When you work with a professional design team and remodeler you can make your home almost exactly as you would like it. You can add living space, adjust the flow, create gathering places and upgrade old and tired fixtures and features.
- You can make your home fit your current lifestyle
As your family grows or your lifestyle changes you can add new living space, free up unused bedrooms and age in your current space.
Cons of remodeling
- You’ll have to live with a construction project
Anyone who has remodeled before knows that a construction project will temporarily impact routines, cooking spaces, noise, clutter, and dust. You have to be okay with that in order to successfully remodel your home.
- The increase in home value may increase property taxes
Something few people consider is that adding to or remodeling your home may increase its overall value and you may see a corresponding increase in property taxes. (For more information about the return on remodeling see this study.)
- Financing a remodel may be more complicated than a new home loan
New home loans are pretty straightforward. If you have good credit and qualify for the purchase price you can usually find a mortgage to suit your needs. While loans for remodeling are readily available you may need equity in your current home and a lender who understands construction loans that convert to a mortgage.
Pros of moving
- You can move to a new neighborhood or city if you like
Maybe you’re not that fond of your neighborhood or even your current neighbors. Moving is a way to change the scenery and perhaps move to a new school district or part of town.
- You can move into an already renovated home
If you’re not the type to remodel you can move into an already remodeled home and take advantage of someone else’s hard work. Although you can expect to pay more for this route.
- You won’t have to put up with construction mess
Construction is a messy process when you have to live in it. Buy relocating and purchasing a home that meets your requirements you can avoid the temporary discomfort of remodeling.
Cons of moving
- You may have to do some renovations in order to sell
You may find that in order to maximize the saleability of your home you'll end up needing to complete many of the remodeling projects you are considering anyway.
- Selling and buying a new home involves significant costs and the stress of moving
Moving, real estate, and finance charges add up quickly and often make the choice to move far more expensive. Add on to the this the stress that moving often brings and it may make it a less attractive option.
- You may have to compromise on functionality in your new home
When you buy a home based on what's on the market you might not be able to get exactly what you're looking for in terms of layout, design, and functionality.
Critical questions to ponder as you consider remodeling vs. selling?
- Do you have the space to expand?
If remodeling can’t fix your space problems, the issue may be moot. But consider other ways to maximize the space you have.
- How much remodeling can you do before you start over-improving for the neighborhood?
Whatever your home remodeling improvements, they should match the size and sensibility of the area in which you live. Too many improvements do not always translate into higher resale value, and a massive addition may alienate your neighbors. Schloegel Design Remodel can help you make remodeling decisions that make sense financially and aesthetically.
- Will remodeling do the trick?
Be realistic about how much remodeling can do. If you want to live in a spacious home on a large lot right now, no contractor will be able to turn your tiny urban bungalow into the home of your dreams.
- Will remodeling pay off in the long run?
In a slow market, you can expect to get a lower price for your home and much less of a payback for improvements than you would receive in a fast market. Kitchen and bathroom remodeling projects consistently return the most in resale value while converting a basement into a family room yields the smallest return. Factor in any financing costs you incur if you refinance or use a home equity loan to complete your remodeling project.
For more guidance on your remodeling ideas, contact Schloegel Design Remodel of Kansas City at (816) 361-9669!