People outgrow their houses over time. Your family may need more space now that you have had children. You may want a newer home or one with more amenities now that you have more savings. For any of these scenarios, you have two options: to remodel or move. Ask yourself these 4 questions to help make the decision.
Remodel or Move: What is More Cost-Effective?
There are a lot of costs that go into both moving and remodeling. While remodeling may not cost as much as buying a new house, you’ll get back money from selling your house when you move. The more cost-effective route varies based on many factors, like how major the remodel would be and how much you can sell your house for. Some of the other factors to consider include:
- Costs of required building permits
- Architectural plans
- Costs of materials and labor
- Seller’s agent commissions
- Moving costs
- Down payment and closing costs
How is the Real Estate Market in Your Area?
Find out if it is a good time to buy or sell a house in your area. If house costs are at an all-time high and there is a lot of demand, you may have a hard time finding a house that is reasonably priced. However, this likely also means that you can make a profit selling your current house, and sell it quickly.
If the real estate market is sluggish in your area, you might get into the unfortunate situation of buying a new home and then not being able to sell your current home, resulting in two mortgage payments.
Are You Attached to Your Community?
After living in a house for many years, some people become emotionally attached to their neighborhood and community. Perhaps you like the nearby grocery store you frequent, or don’t want to make your kids change schools.
Moving requires you to get used to an entirely new routine based on where you live. You’ll have a new commute to work and visit new businesses that are closer to your home. If you are already attached to your current neighborhood, you might lean towards remodeling your home rather than moving.
Do You Have the Energy to Remodel or Move?
Both remodeling and moving take a lot of energy. The remodeling process is likely to take longer than a move to a new home. It is not so much physical exertion, but you will be inconvenienced by workers and construction in your living space for possibly months on end.
Alternatively, the moving process is exhausting but happens more quickly. The process leading up to it is draining, from house shopping to inspections to negotiations, but once it comes time to move, you’ll likely only need a couple of days before you’re completely moved into your new home.