Factors To Consider When Deciding To Move Or Remodel Your Home
This might be one of the most common questions posed to an interior designer. Families are often in a state of changing needs and whether it is a growing family or needing to downsize, there are many factors that you should be considering before deciding whether to sell your home or to remodel. Most of my client’s make the decision to remodel their existing home because they love their neighborhood, they like the ‘bones’ of their house, or they cannot afford to move with all of the added costs associated with moving. Also, they’ve lived in their house long enough to know what they like about it and what needs to be improved.
So it’s important to consider the advantages and disadvantages of moving or remodeling. And here are some of the things you should consider;
The Advantages of Remodeling
- You’ve lived in your house long enough to know what you like about it and what needs to be improved or updated to fit your family’s needs
- Assuming you focus on upgrading rooms that will add further value to your home and give you the functionality you need, you are likely to result in a high-percentage return on the dollars spent
- You will be staying in a neighborhood you love, and keep the neighbors you like
- You know what areas will need to be remodeled and can fix any aging items in the house
- Better remodeling than moving to a new home only to later learn that you will need to conduct repairs and upgrades on aging areas or things you don’t like about the new home
- The overall cost of the remodel will most likely be far less than moving to a new home that has a much higher tax rate.
- You can alter the structure or add amenities exactly to your specifications
- You will avoid all of the hidden costs that are associated with a move
- You will avoid the stress of having to move
- You will get the exact new space in the house that you are invested in and already love.
The Disadvantages of Remodeling
- Knowing how much you will need to repair or remodel may make the project too cost prohibitive
- If your purpose is to downsize, remodeling will probably not make sense
- Even with a remodel, you may not be able to get everything you desire in the house
- It is difficult to refinance a remodel as the terms will require a higher credit rating from borrowers, carry a higher interest rate and impose shorter payoff terms
- You will need to deal with construction hassles
- Your cost for remodeling may exceed the market value for the neighborhood
The Advantages of Moving
- You get to choose the location that makes sense for you
- You get to select the home of your choice, within your budget
- A tax specialist would tell you that there are many tax laws that favorably affect the calculation of taxes upon the sale of one’s home and the repurchase of its replacement
The Disadvantages of Moving
- Even a new home may not have some of those special features that have you wanted which will eventually cause you to remodel or update your new home
- Agent commissions for selling your home, and then buying another will be costly
- In addition, you will need to pay real estate fees, appraisal expenses, title search fees, title insurance, and legal fees
- Packing – often cited as the biggest reason people decide not to move. Having to pack up everything you own and get them sealed into boxes is enough to change anyone’s mind
At the end of the day, this is a big decision to make. But when I talk with my clients who have decided to update their existing house, the end result is always positive.