Are you at a point where you have to decide between renovating your current home or selling and moving on? You aren’t alone!
This decision is never easy. How much can you renovate before you’ve done too much for the area. You can over improve! In most cases you won’t get dollar for dollar back for renovations you’ve complete. Are you planning on staying in the home and enjoying the fruits of your labor? If so, then it might be worth it. There are so many things to consider.
Let’s run through some general Pros and Cons
Other Considerations That Will Affect Cost
To renovate or not to renovate
Before you decide to renovate make sure you know your homes value as is. Does it make sense to renovate based on sales in your area? This might be the deciding factor.
Home prices have increased, which means that you may get more from your home when you sell but you will likely pay more for a new home as well. Research new home prices and make sure you can qualify for a new home or a renovation loan before you begin. They both have specific requirements. This might also be a deciding factor.
Ask yourself: what are your housing needs or goals for the next 10 years? If you like your home and it works for your lifestyle, then it can make sense to remodel. If you plan to move in a few years anyway, then you may want to consider staying where you are and not remodeling. Since it’s unlikely you’ll get all your money back out of a remodel when you sell and you might not have the time to enjoy the changes.
Check out this House Beautiful link for renovation estimates
Pros
Your way. You now can design the home of your dreams and do it your way.
Cost. Depending on the extent of the renovation, if might be cheaper to renovate then to buy an already updated home. Keep in mind that not all renovations are ascetic changes, some might be safety or energy saving/efficiency issues.
Home Equity. You might be able to use home equity to pay for renovations. Borrowing against home equity can be less costly than taking out a new home mortgage.
Emotional connection. A home can be more than shelter. You might have experiences significant life events in this home. These memories are hard to walk away from. If the home makes you happy, then renovation might be a good choice.
Location. You an change the appearance of a home but you can’t change the location. If your home is in that perfect location, then renovation might be the answer. Can you afford to buy a new(er) home in the same location?
Tax advantages. Look into potential tax advantages for energy-efficient upgrades
Cons
Over personalize. Be aware that at some point you may need or want to sell your home. Just because you like the custom mural in the living room, doesn’t mean the buyer will. Custom details will limit your buyer pool
Get Quotes. Make sure to get several quotes for the work to be done. Compare the quotes and make sure that all the contractors are reflecting the same items. The price of renovating an older home can be steep. Some of the big ticket items can include: roof, foundation, electrical and plumbing and HVAC.
Renovations to sell. If you do decide to sell, are there some things you need to renovate to get the best return on your investment?
Toxins. Does your home potentially have lead paint or asbestos? Having these professionally removed can increase your cost significantly.
Surprises! As you renovate a home there will be surprise repairs. Make sure to have a little cushion in your budget to address these issues.
Construction zone. Renovations can take more time than expected. Be prepared to be away from your home for longer periods of time.