If your home isn’t quite the home of your dreams, you may be thinking about extensive upgrades to the property. It’s possible you’ve grown frustrated with the lack of space or a kitchen that doesn’t meet your needs and are ready to shop for a new house. Before putting a “for sale” sign in the yard or knocking down walls, here are a few things to think about when deciding whether to renovate or relocate.
Are You Attached to Your Neighborhood?
If you have lived in your current home for a while, you may have developed close friendships with your neighbors. Conversely, perhaps many of your long-time friends have moved away. Maybe a new shopping center has increased traffic in your community that was once quiet. Locations change over time, and you might be ready for new scenery.
When thinking about whether to renovate or relocate, the neighborhood will play a big role in the decision. If your current neighborhood is appealing, you may prefer to renovate. If it is not the perfect location for your family, then a new neighborhood may be the right choice. You can enhance and add on to your current property, but you can’t change the local community.
Assess the Financial Impact When Deciding to Renovate or Relocate
The costs of both home renovation and moving to a new location are often underestimated. An older home may have unknowns that are difficult to anticipate and estimate when making upgrades. Things like lead-based paint mitigation and asbestos abatement can add thousands to renovation costs. When updating a home, take into consideration the cost of materials, getting building permits, paying the contractor, staying in a hotel, and eating in restaurants.
With moving, there also costs to plan for. You’ll have expenses related to putting your house on the market. There will be repairs to get the home ready to list and you’ll need to put aside money to boost curb appeal. It is possible that your home won’t sell as quickly as you expected and you will be forced to lower the price. This will leave less money for a new home purchase. Alternatively, your property may sell quickly, even before you’ve found a new home. Budget for temporary housing and the storage of your belongings while you’re between homes.
Plans for the Future
When looking at a home renovation versus relocation, think about what you’ll need years from now. Your living situation should meet the needs of your family, now and in the future. If you plan to stay in the home well into retirement, you’ll appreciate a first-floor master bedroom and bathroom. If you want to have children in the next few years, consider whether the house is safe for kids. Take time to think about potential scenarios and problems that may present themselves.
Making a decision about home renovation or relocation is overwhelming. With thorough planning, the process can be fun and rewarding. Sit down with your family and create a list of pros and cons. Decide what features and amenities are most important and start planning for a home that will meet your needs.