To Move or Remodel?
With major life changes, a homeowner may have to decide whether to remodel their current property or move into another home. Many factors must be considered before making a decision. Read on for important things to think about when deciding whether to renovate or relocate.
Evaluate Long-Term Goals
Think about your long-term goals and discuss them with your family members. Consider what type of house you want to live in, what you can comfortably afford, and where you want to be in several years. This will help you choose which option best meets your objectives at this time.
Are You Emotionally Invested in Your Home?
Your family may be more attached to your house than you think. When the prospect of selling is mentioned, emotions will surface. If you have been living in your home for a while, you may have a strong connection to the neighborhood and community. Consider how much you’re invested in your area when determining whether relocating or renovating is the best option for you.
Investigate the Local Real Estate Market
Take into account the current condition of the real estate market before you decide to renovate or relocate. It may be more cost-effective to move than renovate, but it’s unlikely you will get the most out of your investment if you sell during a downturn. Conduct some research into market conditions before making your decision.
If you opt to relocate rather than renovate, examine the local real estate market to find out when is the best time to sell your property. If you want to renovate, make a budget and stick to it as much as possible. Another consideration is the changing seasons. Homes have better chances of selling at or above the asking price in the spring and summer.
Is the Timing Right for You to Renovate or Relocate?
Depending on your family requirements, selling your home and relocating may not always be practical or feasible. Moving to a new location might require significant upheaval, including changing schools, jobs, and higher living expenses.
On the other hand, it might be an opportunity to transfer your children into a better school, reduce your daily work commute, and potentially save money on your mortgage. Renovating your house also has its own set of costs. Is it possible for you to afford a pricey renovation right now, or should you take advantage of your equity and sell your home for more money and relocate?
The Cost to Either Renovate or Relocate
Calculate the cost of purchasing a new property. Budget for any repairs or upgrades needed at the new home, as well as moving expenses, land transfer taxes, and real estate fees. If your budget doesn’t match up, renovating may be a smarter option. Get an estimate from several contractors for the renovation costs, then make your comparison and decide whether you will renovate or relocate.