Should You Renovate Your Home or Move?
Trying to decide whether to renovate or move can be difficult when your current home no longer fits the way you live. Maybe you need another bedroom, want a larger kitchen, are tired of the layout or simply feel ready for something different.
That’s when many homeowners start asking the same question: should we renovate the home we already have or sell it and move? There isn’t one right answer. Before spending a significant amount of money on a renovation or putting your home on the market, it helps to understand exactly what you’re trying to change and whether your current home can realistically give you what you want.
Start With What Isn’t Working
Before looking at remodeling plans or new homes, make a list of what’s bothering you about your current house. Some problems can be changed. An outdated kitchen can be remodeled, flooring can be replaced and a poorly used room may be reconfigured. Depending on the property, it may even be possible to add living space.
Other things are much harder or impossible to change. You can’t make the lot larger, move the house to a quieter street or change its basic location. Some floor plans are also difficult or prohibitively expensive to alter. If most of your frustrations involve things you can’t reasonably change, moving may deserve a closer look.
Consider What the Renovation Would Really Cost
Renovation costs can grow quickly, particularly once walls are opened and unexpected problems are discovered. Before deciding to stay, get realistic estimates for the work you’re considering and leave room in your budget for surprises.
Then ask yourself whether you would still be happy with the home after spending that money. A beautiful new kitchen may solve the problem if the kitchen is what you dislike. But if you also want a larger yard, another bedroom and a different location, spending heavily on the kitchen may not solve the bigger issue.
Don’t Assume Every Improvement Will Come Back to You When You Sell
This is an important consideration if there’s a possibility you’ll move within the next several years. Renovations can make a home more enjoyable and may make it more appealing when it’s eventually sold, but that doesn’t mean you’ll recover every dollar you spend.
Some improvements may be worth doing primarily because you’ll enjoy them while you live there. Before undertaking a major project with resale value in mind, I recommend looking at comparable homes in your neighborhood. We can see what remodeled properties are actually selling for and whether the level of renovation you’re considering makes sense for the area.
Find Out What Your Current Home Is Worth
Before deciding to move, it helps to know what your current home may be worth and approximately how much equity you have. You may discover that you have more equity than you realized, which could give you options you hadn’t considered. Or you may decide that staying and improving the home makes more financial sense right now.
Knowing the numbers doesn’t obligate you to sell. It simply gives you better information for making the decision.
Look at What Moving Would Actually Buy You
Before spending a significant amount of money changing your current house, it makes sense to see what that money, combined with your existing equity, might allow you to purchase.
We can look at homes in the areas you’re considering and compare them with what you already own. What would your next home cost? Would you get the additional space or features you want? What would property taxes, HOA dues, insurance and your new mortgage potentially look like?
You may discover that moving solves several problems at once. You may also look at the alternatives and realize you already have a pretty great house that’s worth improving. Either answer is useful.
Think About How Long You Plan to Stay
If you love your location and expect to stay for many years, investing in changes that make the home work better for you may make sense even if every improvement doesn’t produce an equal return when you eventually sell.
If you already suspect you’ll want to move within a few years, a major renovation deserves more careful consideration. Living through months of construction and spending a significant amount of money only to sell shortly afterward may not be what you want. Your timeline matters just as much as the potential resale value.
Don’t Forget the Reality of Living Through a Remodel
It’s easy to focus on the finished result and forget what happens between demolition day and the beautiful after photos. Depending on the project, you may be dealing with contractors, permits, dust, noise, delays and periods when parts of your home aren’t usable. A large renovation can also require temporary living arrangements.
For some homeowners, that’s completely worth it. For others, buying a home that already has what they need sounds considerably more appealing once they understand the scope of the project.
Compare Both Options Before You Decide
You don’t need to decide whether to renovate or move before talking with a real estate agent. In fact, this is a conversation I like having before a homeowner spends money on a major renovation.
I can help you understand what your home may be worth today, what similar remodeled homes are selling for and what your budget might buy if you decided to move instead. Then you can compare the two paths with real information rather than guessing.
Sometimes the answer will be to sell. Sometimes I’ll tell you that I think staying exactly where you are and making a few changes makes more sense. The goal isn’t to convince you to move. It’s to help you determine which option gives you the home and lifestyle you actually want.
