Making the Choice to Remodel or Move

A home is far more than drywall, paint and a back yard; it’s the place where your family grows and makes memories. A home has to accommodate a number of different needs, and as its residents’ lives evolve, their home needs to, as well. Often times, homeowners find that the space they loved years ago no longer fits their current lifestyle. Whether it becomes too cramped with additional children, pets and belongings, or is simply too outdated, making a choice to finally move or embarking on an expensive renovation can be a stressful problem to address. Since any solution takes time and money, most tend to ignore the problems and live years in less than ideal situations, simply to avoid the headache of making a much-needed change.

When you’re no longer happy in your home, it’s important to speak with a real estate professional first, to make the best decision for the future. There are many options, but the two that lead the debate are whether to renovate your existing home; or sell and relocate. It can be difficult to leave behind a home with so many memories, so sometimes rebuilding or adding an addition is a great way to stay happy in your home, especially if you love the area you live in. Understanding the numbers and the work involved are the two main factors to consider when deciding to move or remodel.

Understand the Numbers

Consumers generally believe that all renovations are investments, and that any updating will eventually lead to an increase in their home’s value. While this is by and large true, especially if they live in a community that’s held its value over time, it’s important to distinguish between remodels for comfort, and renovations geared towards a future sale. It can be less expensive to stay in your home and remodel, but not if you’re going to build an entirely new house. Typically it’s easier to sell a home that is on par with the comps in the neighborhood, so if you plan on substantial additions -- consider the difficulty of selling a house that is significantly larger/more expensive than it originally was. You don’t want to “overbuild” for your street or you run the risk of not getting the return on the money you put in. According to HGTV’s Property Brothers, it’s time to sell if your family has grown, the neighborhood no longer suits your needs, or if the remodeling project isn’t cost-effective. If you’re looking to add bedrooms and bathrooms, it may be easier to sell.

Understand the Work Involved

If you’re considering staying in your home, but realize that the renovations to your existing property will be extensive, make a punch list of all the items your ideal project will include. Once you have the master list, speak with a contractor who would be able to execute the job, and be sure to get an accurate timeline and cost estimate. Weigh these factors against the work involved in relocating and see what best fits your time table and lifestyle. If you can’t bear the idea of leaving your cul de sac and your kids can walk to school, staying put might be the right choice. On the other hand, if the work will take up to a year, and you can’t live in a construction zone, or there’s not enough equity in the home currently to refinance and fund the job, selling and making a move is likely the best game plan.

Making a pros and cons list is always a good idea when it comes to major life decisions such as where to live. Try to keep sentimental attachments off of the list and truly compare what you love about your existing home, to what you love about the idea of moving. Beyond the obvious financial considerations, try to include things like proximity to recreational activities, friendly neighborhoods, parking, school systems, and drive time to friends and family.

While making a change of this magnitude can be overwhelming, taking a ten-thousand foot, objective view and putting some thought into it ahead of time will help you make the best decision for you and your family. Only after careful consideration of both options will you be able to settle into your home – current or new -- for the long haul.