July 5, 2022
Should You Love It or List It?
Should You Love It or List It?
Are you better off moving or remodeling your current home?
Are you sick of being in your house? Sick of looking at the same walls and same yard? Has two years of staying at home left you wanting a change? If you answered yes to any of these questions, I would bet you’ve wondered if you’re better off remodeling your current home or just moving completely. There’s a lot to consider when deciding between a move or a remodel-there’s the many costs, the value of the home, the real estate market, location, and most importantly, what best fits your family’s needs.
My goal with this blog is to break down the pros and cons of moving versus remodeling to help you compare and decide what option is best for your home and your family. The costs of remodeling and moving is such an important factor to consider that it got its own paragraph.
- Fully Customizable and Adds Space to the Home
- Can Add Value to the Home (Return on Investment)
- Don’t have to uproot family and leave memories
- Generally cheaper than Moving
- Live in a mess until the project is done
- Current labor and supply shortage may impact cost and project completion date
- There can be hidden problems and cost
- Fresh, New Space and Location
- More Space if Upgrading Home
- New Floor Plan that may benefit your family
- Blank Canvas for decorating and memory making
- Adjusting to an unfamiliar environment and lifestyle changes
- Depends on a fragile real estate market
- Leave behind memories
Zillow offers 7 steps to take when you begin thinking it’s time for a change and are deciding whether it’s best to remodel or move:
- Do a side-by-side comparison of the costs of remodeling or moving
- Research the real estate market in your area
- Think about what roots you have in your community
- Research a time-line
- Think about if there are things you’re unhappy with that a remodel wouldn’t fix, like your location or neighbors
- Calculate your Return On Investment for a remodel
- Understand the value of your neighborhood and the risk of “over-improving” your home
Costs of Moving
Moving is a lengthy and expensive process that all depends on the ever-changing real estate market and the costs of moving are anything but straightforward. There’s the costs of selling a home, costs of buying a home, and a real estate agent to consider.
Costs Within Selling a Home:
- Agent Commision
- Minor Repairs for being sale ready
- Potentially Major repairs on older homes
- Title Insurance
- Capital Gains Tax
- Moving Costs
Costs Within Buying a Home
- Down payment for the home itself
- Remodeling if neccessary
- Furnishing the home
- Closing costs
- Home appraisals
- Title insurance
- Mortgage payment, possibly two with overlap.
- Interest Payments
- Property Tax
- City permits
- Architectural planning
- Project materials
- Possibly an increase in property tax and cost of utilities
The costs of a remodel all depends on the size of the project and materials used. Higher quality materials are going to be more expensive, but end up saving you money by not having to repair or replace those materials and products as frequently as their cheaper counterparts; higher quality materials are also more likely to offer a better ROI. “According to Home Advisor, in the U.S. the average remodel costs $46,788 with a range of $18,372 – $77,016.” At Homestead Remodeling, our popular remodeling range from:
- Cost to remodel a kitchen: $4,000 – $60,00.
- Cost to remodel a bathroom: $8,000 – $45,000.
- Cost to build a home addition: $300-$500/square foot
- Cost to build a sunroom: $30-$240/square foot
Financing a Remodel
If you have equity in your home, you have a cash-out refinancing option. Other options for financing include: a personal loan, a home equity loan, or a home equity line of credit. If you do choose to fund a remodel using financing, there are closing costs and interest rates involved. Financing is a great way to make remodeling your home possible and more affordable. If you’re considering a remodel, Homestead Remodeling is currently offering 36-month no interest financing! Call us at 651-493-3012 to take advantage of this offer!
The number one thing to consider when deciding between a home remodel and purchasing a new home, is you and your family. If you love where you live or staying in one place for your kids is important to you, a remodel would be the way to go. If you need to be closer to work or school, moving may be your best fit. If you want my honest advice, I hate packing and moving so much I would always suggest remodeling! If remodeling sounds like the right option for you, call Homestead Remodeling at 651.493.3012 to get started with your project!