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When you’ve outgrown your home or are in need of an update, you have two options: renovate or relocate.
Each require research and time, and unfortunately there is no short answer. You’ll have to look at factors like what make the most financial sense, emotional attachment to the home, and what are absolute must-haves are. To reach a conclusion, here are a few questions we think you need to answer as well as homeowner tips for helping you make the best decision for you.
When it comes to remodeling, a lot of homeowners don’t exactly know what they want when they decide to stick with their current home and just plan an upgrade. Most plans usually start with the homeowners knowing what they want in a general sense, like, “I want more space,” but, after a project starts, wish they could change the plan. That can lead to an increase in cost of time and materials. A few known forgotten considerations when remodeling include:
If you opt to move instead, you need to consider what you are looking for not only in your new house but also a new neighborhood. People will often look at things like schools and crime rate, but some other factors that should look into like:
How Much Time Do You Have?
A home renovation is a long-term commitment. Most remodels require at least three months to accomplish and the time can be extended depending on the project. One thing to consider when looking at the time commitment is, how long can you last in a construction zone? If you plan on living at home while the renovation is happening, you won’t be able to use that part of your space during the construction. It’s a tip we feel is worth noting as it can be overlooked in the initial excitement of dreaming up the outcome.
On the flip side, buying a home can take just as long, if not longer, than a remodel. If you decide to relocate, here is a laundry list of items you need to consider as you plan to make the move.
Realistic budgeting is vital in deciding whether to update your current home or look for a new space. Depending on the types of renovations you’re thinking about doing, the age of your home and the amount of equity could help tilt your decision in a certain way. If you will be financing your remodel, you will need figure out how much a home equity loan or line of credit will cost in comparison to a new mortgage. Should you decide to go down the new-mortgage route, there are other decisions you’ll have to weigh like should you chose a fixed rate or adjustable rate mortgage.
When thinking about how much of a remodel loan you need, make sure to calculate the product costs, labor costs, as well as some cushion incase a problem arises.
Yes, there is such a thing as over renovating. This would be where your home no longer fits in with the rest of the neighborhood post-remodel. Over renovating will cause you to see less return when you decide to sell. If your neighborhood is full of one-story, starter homes adding a second story may not yield the return you were hoping for.
Whether you decide to renovate or choose to look for a new location, it is important that you have someone on your side. Contact us and let us help you make the choice that’s best for you.