Your home is likely going to be the most valuable asset that you will ever own. At some point, many property owners will want to have a property that is larger, more functional, or modernized. When this time comes, they will have to decide between remodeling their existing property or moving into a new home. This can be difficult to determine and the right choice is based on a variety of factors. There are several factors that you should consider when trying to decide between moving or home remodeling.
Home Prices in Area
One of the factors that will influence whether it is more feasible to sell your existing home and move or renovate the current property is what home prices in your area are. For the past year, housing markets across the country have been very hot. While this likely means that you would be able to sell your home quickly and for a higher price, it will make it more competitive for you to purchase a home that has all that you are looking for. Due to this, many people that choose to purchase a larger home may end up spending more money than they want and still need to invest in a remodel in the future.
Cost of Moving
Another factor that should not discount is the cost that comes with selling a house and moving. Anyone that has sold a home and moved into another property, even in the same town, will likely find that the total costs can add up quickly. Between the cost of realtor fees, bank fees, legal costs, and other closing costs, you could easily spend tens of thousands of dollars on the close of your sale and purchase. You will need to spend thousands more having your items move from one house to the next. You can be avoide if you choose to stay in your home and remodel.
Cost of Renovation
Once you have determined the cost of selling and changing homes, you should compare it to the cost of the renovation. The amount of money that you spend on a remodeling project can vary considerably. The factors that will impact the cost of the renovation include the scope of the project, the finishes that you choose, and if there are layout challenges that need to be worked through. A reliable contractor will be able to give you a detailed estimate of how much it would cost for you to complete a renovation that will give you the home that you want. In many cases, you may find that the cost of remodeling is more affordable once all factors are taken into consideration.
Desire to Stay in Area
If you have been in your home for a while, you may find that you are hesitant to leave your location. You likely will have forged friendships with neighbors and others in the community and may not want to have any kids switch schools or have a longer commute. If this is the case for you, finding a way to remodel your home could be the preferred option as you can stay where you are comfortable and happy. However, if you are looking for a new community to move to or want a change of pace in a different environment, moving may make sense.
If you would like to move into a home that has more space or has upgraded features, you will have the option of either remodeling your existing property or moving. By taking these factors into consideration, it should be easier for you to determine which option is better based on your situation.