What You Will Learn in This Article (Reading Time – 5 Minutes):
- How to evaluate the costs of a renovation
- The pros and cons of renovating your home over moving
- How to evaluate the costs of a move
- The pros and cons of moving over renovating
After you have lived in home for several years or longer, you may find that your home no longer meets all of your needs. For example, you may find that a style that you once loved is now outdated and undesirable. Perhaps your family has grown in size, and you need more bedrooms and living areas to feel comfortable. You may work from home now and need a dedicated office space in the home. Regardless of your current needs, you may be wondering if moving into a new home or renovating your existing home is a better decision to make. With a closer review of the costs, benefits and drawbacks of each, you can make a more informed decision that is best for you and others in the home.
Examining the Costs of Renovation
The costs associated with renovating your home can vary substantially based on the scope of the work. For example, if you are finishing out an attic, the cost will be much lower than if you are adding onto the side of the home. This is because the latter type of project requires you to take on additional costs for foundation, exterior siding materials, roofing, and more. In some cases, renovating may not even be an option. This is because you may need to extend the home, but you may not have room in your yard to do so or because of other similar reasons. It is important to note that many homeowners will need to seek financing to pay for renovating costs. Applying for a home equity loan or line of credit is common way for homeowners to get the necessary funds for renovation, and there may be loan fees associated with this financing as well.
The Pros and Cons of Renovating
Renovating your current home can be expensive, but it also can be rewarding and beneficial in different ways. For example, you may have to endure the construction process in your home for several weeks or months, but you will not have to go through the stress and cost associated with moving. Renovating may add more usable square footage to your home, and this can directly improve your property value. This means that this can be a financial asset for you to enjoy. In addition, when renovating your current home, you may can retain your relationships with neighbors, and you will not have to make the transition into a new community. If you love your community, renovating may be preferred regardless of the financial benefits or drawbacks.
Reviewing the Costs of Moving
The alternative to renovating is moving into a new home. This may be to a larger or more stylish home in your same community or in another nearby community. There are several costs associated with moving that you should consider. For example, many sellers will spend a fair amount of money fixing up their home to prepare it to list for sale. They also typically are responsible for paying both the buyer’s and seller’s real estate agent fees, and these combined fees may be approximately six percent of the sales price of your home. There may also be fees associated with buying a new home, such as an appraisal, a property inspection, and more. You typically will need to put down a down payment on the new home as well, but this may be derived from the equity you receive when you sell your current property. Finally, moving costs should be calculated into your decision as well. It may cost several hundred or even thousand dollars to move an average family into a new home using professional relocation services.
The Advantage and Disadvantages of Moving
It may seem as though moving is a costlier option in comparison to renovating, but this is not always the case. Many people can find an affordable home that meets their current needs for space and style. This new home may be much more affordable than enduring renovation costs. In addition, moving enables you to move into a more desirable neighborhood. The new neighborhood may be closer to your workplace to decrease your commute time, and it may have better schools for the kids. As you can see, the home and neighborhood you choose to relocate to will play a direct role in the advantages versus disadvantages associated with moving.
Easy Steps to Follow to Make a More Educated Decision
In order to determine if moving into a new home versus renovating your current home is a better option for you and your family, it is necessary to examine both options more carefully. Consider getting a quote from a general contractor for the renovation costs to your home. Request a loan quote from a lender for a home equity loan if this is needed to fund your renovation project. Talk to areal estate agent about the moving option. Make a list of what you would like your new home and community to have as well as your budget for this project. After you have taken each of these steps, you can more easily compare the costs associated with each one, and you can examine the costs against your budget and cash reserves. You can also compare the type, quality and space of the living options associated with renovating versus moving.
There is no right or wrong answer regarding whether you should move or renovate your current home. Each homeowner should carefully analyze the options, and this does mean exploring the costs and project details more closely. A smart idea is to make a list of needs and wants for your next home and to contact the team at Evergreen Properties and Investments to learn more about new communities and homes that may appeal to you in the Long Beach area.
From the Author: My name is Dan Barcelon and I believe that Real Estate can be one of the most valuable assets you’ll ever own. I’m dedicated to educating and guiding my clients on how to manage and leverage their homes to create an Evergreen legacy for themselves and their family. I primarily consult both home buyers and home sellers on reaching their personal and financial goals through Real Estate in the following cities of Southern California: Long Beach, Carson, Cerritos, Signal Hill, Torrance, Lakewood, Cypress, Downey, Bellflower, Norwalk, Wilmington, La Palma, and Artesia.
If you’d like to discuss if buying, selling, or investing in real estate is right for you at this time, feel free to reach out. You can call/text me at 562-270-5812, or you can e-mail me at danb@EPIrealestate.biz.