Once upon a time, you were faced with the choice of continuing to rent or making the jump to become a homeowner. Now that you’re a homeowner, you’re finding that the hard decisions don’t stop. For example, if your home doesn’t fit your needs as well as you think it should, what’s next? Suddenly, you’re weighing another question: Should I renovate or move to a new home? How do you decide?
Should I Renovate or Move to a New Home?
If you’ve grown disenchanted with your dream home, you’re not alone. Sometimes, it’s a matter of a growing family that needs more space. Or, it could be a shift in priorities that has you longing for a different floorplan or new amenities. It could even be that you simply want something different. Whatever your reason, you’re wrangling with the question: Should I renovate or move to a new home? There’s no one right answer. After all, the solution that’s ideal for one person might be a poor fit for another individual. How do you decide? It might help to ask yourself a few questions about your means and motivations. Reviewing the pros and cons of both options can also be useful.
Considerations to Weigh
Both renovating and moving are major undertakings that should only be approached with careful consideration. As you try and decide which strategy is the better fit for your needs, The Zebra suggests that you consider the following four factors:
- Real Estate Market: Are homebuyers hunting for properties and driving brisk sales? Or, are well-priced homes lingering on the market? If the housing market is thriving, your chances of getting a good price are better. However, if there are reasons why selling now might not be a wise financial move, you’ll certainly want to factor that into your decision.
- Cost: How much will you need to spend to achieve the results that you want with your renovations? While renovations tend to cost more upfront, moving can ultimately have a higher price tag, so you’ll want to do the math carefully. It’s also worth noting that renovations, when done wisely, have the potential to add both comfort and value to your property.
- Timing: What does the timing mean for your family? Renovating will mean dealing with a certain amount of inconvenience. Do you have plans in place for that? However, moving can involve even more upheaval, especially if you’re changing schools, neighborhoods, and jobs. Is now the right time for your family to deal with that amount of change?
- Emotional Attachment: A house may be a thing built of wood, bricks, and mortar, but it is also a place that holds many memories. Leaving those memories behind can add to the always stressful process of moving. A strong emotional attachment may make renovation seem more attractive.
Pros and Cons
As The Simple Dollar points out, both renovating and moving have their good points and their bad points. If you opt to renovate, you’ll get to customize your home, and you may be able to use your home equity to do it. Plus, you won’t have to leave a neighborhood that you love or deal with the costs, hassle, and stresses of moving and selling. Unfortunately, you will still have to deal with renovating, which isn’t stress-free. In fact, it’s often pretty stressful. It’s prone to unexpected expenses, and homeowners are highly unlikely to see a 100-percent return on their investment in terms of an increase in their property’s value.
What about moving? According to The Simple Dollar, the advantages of moving include not having to live in a construction zone or deal with contractors. You can simply step into a home that’s ready to go from the moment that you turn the key in the door. Moving’s disadvantages include the costs and stress involved and the lack of customization. After all, you’re limited by availability and your budget, so you may not be able to find exactly what you want. There’s also the issue of potentially leaving behind an area that you love.
Are you interested in home loans or refinancing? Could a renovation loan help you reach your housing goals? Contact PrimeLending Twin Cities today to explore the possibilities. Simply send us a message online to get started.