One of the most challenging decisions a homeowner might have to make is whether to move or remodel. Given high-interest rates and the unpredictable costs of building materials, the risks for both may seem more significant than in previous years. At the same time, if you have outgrown your home, neighborhood, yard, or school district, you may feel compelled to make a change.
There is no right or wrong answer—each homeowner's dilemma will be affected by different factors, including costs, neighborhood, changing needs, family size, time available, and emotional attachment.
Before you make a decision, you need to weigh some key facts:
What are my available financing options?
For a home remodel, these include cash, a home equity loan (or a second mortgage), cash-out refinance, a home equity line of credit, or refinancing to save for renovations.
What will a remodel that meets my needs cost?
To answer this question, you need to get recommendations for reputable licensed home remodelers (like us!) Acquire detailed estimates and schedules from two or three. Make sure the bids include permitting, architectural fees, and educated ranges for plumbing, electrical, and materials.
What will it cost to buy a new house?
Take into consideration whether you plan to stay in your neighborhood or move to a place with a different cost of living. If you want to upsize, a new house in the same area may cost more than a remodel. If you are downsizing, you might choose to renovate and rent out part of your current house instead of purchasing a condo or smaller dwelling. Consider closing costs and moving costs.
Will you have to remodel anyway?
Sometimes buying a new-to-you house means buying a new project. You’ll get some of the things you want and need in a new dwelling, but not all of them. You may be able to achieve more of what you desire by retrofitting your current home to meet your new needs.
Check out this renovation ROI chart to learn which projects pay for themselves.
You also need to weigh some less tangible—but no less important—factors:
Do you want to leave your house or area?
Maybe you’ve built memories there. Maybe you can’t stand the thought of leaving your neighbors. Or maybe you can’t stand your neighbors. Do you embrace change and new adventures, or do they stress you out? Is this the right time to uproot kids or careers? Do you want a new commute, or do you work from home now?
What does the future hold?
At some point, you might want to move closer to relatives or make more room in your home for them. Your kids may be moving out, and you want to use your space in different ways – have less of it to maintain or possibly use it to make extra income. Do you want to grow old in your home, or do you have a different retirement plan that includes traveling or moving to warmer locales?
For most, the decision to move or remodel is one part personal, one part practical, and one part financial. Moving forward with confidence will go a long way toward a satisfying outcome.
Need help deciding which way to go? Call us today for an in-depth consultation. It’s your future—let’s launch it together.