06 December . 2018
Buy new home or remodel? 6 ways to decide
It’s a question many families eventually ask themselves: Should we buy a new home, or remodel our existing home and stay put? The decision can be difficult, especially if you have social and emotional ties to your old home and neighborhood.
To help with the decision, here are six things to consider from Bankrate.com:
Is your home in your heart? Emotional connections are strong, especially if they’re visible in things you see everyday, like the growth chart you may have penciled in the kitchen doorway, or the tree you planted to mark a special occasion. One architect estimates that the majority of homeowners in the remodel-or-move quandary ultimately decide to stay put, but there are other factors to consider.
Can you budget realistically? Accurate and realistic budgeting is a must if money is a consideration, as it is for the vast majority of homeowners. Getting a firm grasp on the space, amenities, and finishes you want in your remodeling project can help you make a realistic comparison of the cost-benefit ratio of remodeling vs. buying a new home.
More square footage, or just more rooms? Often, families decide to move because they need more space, such as an extra bedroom, a home office, or a gameroom. Sometimes, reconfiguring existing square footage can provide the desired extra space. If not, it may be more cost effective to consider a move.
Think about the disruption caused by a renovation. A kitchen remodel can take up to six months, and even a bathroom remodel can take as long as three months. Consider the long-term disruption that can be caused by remodeling when deciding whether to move or remodel.
Will you earn back the costs? When upgrading, consider the return on investment for the renovations you are considering. In other words, will the improvements lead to a higher sale price should you eventually sell? Some projects, such as kitchen and bathroom remodels, offer the best returns, covering up to 90 percent of the cost. Other renovations, such as a primary suite addition, can earn back less than half of their cost.
Will you be “over-improving”? Along with “location, location, location,” one of the most well-known rules of real estate is to never “over-improve” your home compared to others on your block. You are much less likely to recoup the cost of remodeling should you eventually decide to sell.
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