The decision to remodel your current home or move to a brand new one has dozens of factors and isn’t always an easy one to make. While you may think you know which is right for you, it’s a costly mistake to make if you make the wrong decision. Before you start your home renovation project, make sure you have taken the following things into account.
Reasons to Remodel
You Love Your Neighborhood
Many people choose their house because they intend to make a home there. If you’ve made friends with your neighbors, are in a great school district for your children, and love the short commute to your work, it’s probably better for you to stay and work on the house you already have. Clearly, you chose your house because you love it, and there’s no point in moving if you’re already happy.
You Have a Great Mortgage Rate
The market is often a key factor in deciding whether or not to move. If you’re sitting on a 2.5% interest rate and the current market is offering interest rates at 5%, it’ll be cheaper in the long run to renovate your home rather than moving, even if it may not seem like that at first.
You Have the Room To Do So
Every home has a designated plot of land that is theirs to do with as they want to. If you have the room on your plot to add an extra room or expand your kitchen in the way you want to, you should do it.
You Can Afford To
Remodels tend to be expensive. Compared to moving, where you’ll have the extra funds from selling the previous home to supplement your cash flow, remodels are funded by your own bank account only. While you can get a loan to remodel your home, take an honest look at your finances to make sure you can actually afford it.
You Just Don’t Want to Move
Moving involves packing up your entire house, hiring a moving company, and unpacking in a new place that doesn’t look the same as the place where you just had everything. There’s a lot of decisions to be made and a lot of stress on your shoulders. If you don’t want to deal with it, stay and remodel.
Reasons to Move
You’d Rather Live Somewhere Else
You can’t always get a great sense of the neighborhood when you’re viewing a house on the market. Maybe the neighbors throw loud parties at night. Maybe the nearby highway that you were told you couldn’t hear is actually incredibly loud at night. Whatever the reason is, if you don’t love your current neighborhood, moving might be your best bet.
You Can’t Expand Where You Want To
If the renovation you dream of can only be done by crossing over your property lines or by violating a county ordinance, you should probably look into moving. While it may be possible to get easements or other exemptions to build your perfect home, your time and money would be better spent on finding a new home that fits what you want.
It’s Cheaper to Move
Even though the price of a new home is nearly always higher than the price of a remodel, it’s not always cheaper to remodel. Take into account how much money you would get from the sale of your home and how much you would have to pay out of your own pocket. If you find it costs more to remodel, it might be better for you to find a new home that already has what you want.
You Need to Start Over
Houses hold memories, both the good and bad ones. If, for some reason, you need a fresh start, even if you’re not leaving the area entirely, moving is a great way to do that. A new space with new neighbors and forming new routines may be exactly what you need.