Home Expansion Decisions: Remodeling Or Moving?

If you are currently trying to decide between remodeling or moving, there are likely some aspects of your home that you’re not satisfied with. That’s fairly normal—after all, no house is perfect.

According to Zillow research, 76 percent of Americans would rather use a set amount of money to upgrade their home to meet their needs rather than use it as a down payment on a new home.

While remodeling might be your best option, the decision to remodel or move depends on your unique budget, preferences, and priorities. If you’re struggling to reach a conclusive decision, consider these three points.

Know The Costs Of Both Options

Whether you decide to move or remodel, you’re going to incur costs. It’s up to you to decide which option makes the most financial sense for you and your family.

To discover the most affordable option for your needs, try comparing all the potential expenses in order to make an accurate side-by-side comparison.

What Are The Costs Of Selling?

While you will be making a profit from selling your home, costs do incur during the selling process.

For example, if you decide to hire a listing agent, you should be prepared to pay at least 6 percent of your sale price in agent commissions.

Additionally, paying for boxes, moving vans, etc. might not seem like a large expense, but the numbers can accrue depending on how much assistance you need to move into a new home.

You’ll probably also be making some small repairs to your home. In order to attract buyers, you will likely want to invest in some minor home repairs.

According to one study, homeowners spend an average of $6,570 preparing their homes for sale.

Of course, the biggest cost of moving is paying for a new home. If you decide to sell instead of remodel, you may want to look for a comparably priced home, or you will find yourself spending more money in the long run.

What Are The Costs Of Remodeling?

To figure out how much remodeling is going to cost, hire a contractor and get an estimate.

Depending on regulations where you live, you will probably need a permit if you’re making changes to the structural integrity of your home. If you are making any changes to the square footage of your home or making updates to the plumbing or electrical work, check with your contractor to determine which permits are required.

The materials you use for your home renovation can dramatically impact the cost. Make sure you know exactly what materials you want to use before construction starts—if you change your mind mid-project, it will cost you.

Additionally, unless you’re completing the renovation yourself, you will have to pay for professional labor. You can also expect to cover some additional expenses like off-site storage space, demolition costs, etc.

Decide what home updates you are wanting to pursue, determine the cost of renovation vs. moving, and then decide which option makes the most financial sense for you.

Know The Market

Before deciding whether to sell or remodel, gauge the state of the real estate market. At this moment in time, the Covid-19 pandemic has actually resulted in record-low mortgage rates.

Experts are predicting a strong housing market in 2021 and foresee increased demand from buyers who delayed purchasing homes due to the pandemic.

This means if you decide to move, you might be able to get a good offer on your home. But make sure before you decide to sell that you assess your home’s marketability to buyers.

Does your home need lots of work before you list it? Remember, a home in good condition sells faster than a home than needs lots of repairs—even in a seller’s market.

Consider The Pros And Cons For Both Options

Pros Of Moving:

For one, moving means you get to literally move your location. So if you don’t currently enjoy the neighborhood you’re living in or would like to be in a different school district for your kids, you’ll be able to choose a location more conducive to your needs.

Additionally, you won’t have to live in a construction zone. Remodeling your home can be an invasive project. Moving will certainly save you from the mess and stress of a remodel.

Cons Of Moving:

You probably won’t get exactly what you want. It’s usually not possible to find a home that checks off all your boxes, which is why sometimes people choose to remodel the home they already have rather than moving.

Advantages And Disadvantages Of Remodeling

Pros Of Remodeling:

A remodeling project can make your living area more spacious and contemporary. Plus, a remodel will ultimately increase the value of your property. Many homeowners love the remodeling option because it allows them to perfect a home they already love.

Cons Of Remodeling:

One of the main cons of remodeling is the temporary inconvenience a remodel can create. For example, if you’re completing a full second story renovation, you might have to move out of your home for awhile.

While there are pros and cons for both options, getting a home that you love is definitely possible. Different homeowners choose different routes—choose the path that makes sense for your needs and pursue that dream with the help of a local agent.

Talk To A Local Agent

If you’re debating remodeling or moving, you probably have a lot of questions that need answers. The first step towards getting those answers is contacting a knowledgeable local agent.

Real estate agent, Kim Clark, has years of experience in the Kosciusko area and can assist your home expansion process. Contact Kim today and get the answers you need.