Remodel My Home or Move: Should I Stay Or Should I Go?
02 Oct 2020
Have you ever faced a dilemma about whether to renovate your existing property, or move to a new home? Most owners can’t decide whether they should move or remodel their existing home. In fact, it is challenging to get out of this dilemma and come to a conclusion.
How can you make this tough decision? More importantly, what factors should you consider before reaching a conclusion? The following are things that you should consider in making the best decision.
Know Your Home’s Worth.
First of all, you should know your present home’s worth. Talk to a realtor and ask them to estimate your home’s value. You can even compare the quote with the value of your neighbour’s home. A trusted realtor can help you evaluate whether spending money on renovations would increase your property’s value.
Are you emotionally attached to your house? Do you have a good relationship with your neighbours? If you have a strong connection with your neighbours and surroundings, and it makes you sad thinking about leaving your home, then you should probably think about renovating your existing property instead of moving to a new place.
More Space vs. More Rooms.
Do you need the extra room because your family has grown in numbers since you bought your home? You can reconstruct four rooms with limited space in your existing house, or you can have a new house with four spacious rooms. It is a decision between more room or more rooms. If you don’t have space constraints, then you should renovate your existing house. However, if you cannot compromise on the space, then you should opt for moving into a new home.
If you have any problems in your existing house, like water leakage, intolerable noisy neighbours, or safety issues, then you should definitely consider moving into a new house. In case you cannot afford the house you currently have, a downward rather than an upward move may be necessary. If your mortgage rate is a source of pain, then look around for a lower rate, and think about refinancing. A mortgage broker can definitely help here, as they tend to find much better rates than banks offer.
It takes a lot of time, energy, and patience in renovating a house. Imagine you are renovating your kitchen… you have to empty your cabinets and drawers so that they can be replaced. You have to arrange some other place for cooking. Renovating a bathroom takes a lot of time too. Changing the tiles, water pipes, and plumbing work, takes a lot of time. It is not easy to live in a house that is being renovated. A lot of patience is required!
Avoid Over Improvements.
Don’t go overboard with renovations. A smart idea is to compare the appearance of your dream home with other homes in your current surroundings. An over-improved home won’t sell for as much in its location as it would in a neighbourhood with similar houses. Sometimes people look for smaller functional homes rather than a fancy mansion that’s difficult to maintain.
Add the remodelling costs to the existing value of your home. If the number you get is more than 10% above the average value of homes in your neighbourhood, you’re over-improving, and probably won’t be able to sell for what you put into the remodel.
Can You Afford To Move?
Moving is not an easy process. It is time-consuming, and expensive. Think about these moving costs:
• deal costs for your current home
• shipping your household merchandise
• purchasing window coverings
• new furniture for additional rooms
• expenses to repair your current home before the sale
• higher utility expenses (if your next house is bigger)
• insurance cost difference
• property charges
Will You Earn Back The Upfront Cost?
Before choosing whether to rebuild or move, try to figure out the profitability on either choice. What’s the normal profitability for the redesigns you’re thinking about? Most home redesigns don’t pay for themselves as a higher inevitable deal cost. You can likely recoup 80 to 90 percent of your expenses on a tight budget, but in most cases, you rarely recoup the costs.
In case you’re considering listing your present home and moving, ask yourself whether you’ll be in the new place long enough to recover the expenses of taking out another home loan to cover moving costs. Customarily, it takes seven years to win back those forthright expenses.
Practical budget planning is very important when deciding whether to stay in a current home and renovate it, or to move to another home. If you decide to renovate your house, then realistic budgeting is very important. A lot of homeowners do not know exactly what they want, and sometimes it does not work as they imagine, and it blows up the budget plan.