There comes a time in every person’s life when they feel they need to make a significant change to move forward. And both a comprehensive renovation or a relocation to a house with an ideal layout and size count as potentially life-altering changes. However, which one should you choose? Should you renovate or relocate? Of course, both of these projects require a lot of money, effort, and sacrifice on your part. You should carefully deliberate your options before deciding what would suit you best. Hence, we are here to break down what you should consider before making the final decision!
The current trend in the US leans toward renovation projects rather than home purchasing. As much as 76% of people would invest their money into a remodel of their dreams. This reasoning makes sense, but in some cases, a remodel could easily be more financially draining than moving to a new home. So, regardless of what most people do, you should decide based on your circumstances, budget, and priorities. There is simply no straightforward answer to the question of whether you should renovate or relocate.
Caption: Sometimes, all you need for a fresh start is to change your environment.
Alt-tag: A couple celebrating their relocation
What do you lack in your home currently?
Start the debate by listing the elements of your home you are not content with. Sometimes people get motivated to move or remodel precisely because they recognize that something is missing. Planning to start or expand your family? It could be that you need an extra bedroom to comfortably accommodate all family members. The same applies to bathrooms. Having only one bathroom can be pretty challenging in a large household.
Take a look at your living space carefully and critically. Most people tend to simply get used to the layout they have been living in for years. However, it could be that your kitchen is too small or has inadequate air vents you were forced to accept.
Make a list of features you would like to change in your home
We suggest you note down all the features of your home that bother you. The next step is to contact a trustworthy contractor and inquire about the approximate price of renovations. How much would it cost to incorporate a home addition? Or is changing the layout of your home cheaper? Inquire about your options and compare them. If you decide that a few structural and aesthetic updates will not do the trick, then investing money into comprehensive renovations might not make too much sense.
Caption: Note down the shortcomings of your home.
Alt-tag: A man drawing a remodeling plan
The middle solution to this dilemma is to remodel your home to boost the market value of your property. In this way, you will be able to sell your home quickly and for a higher price. However, you won’t be able to renovate according to your preferences regarding paint colors, for example. So, you can give it a go and later on sell it if it does do the trick.
What do you like and dislike about your neighborhood?
Of course, it also makes sense to think about what you appreciate about your home. Juxtapose the features of your home that you do not like with the ones you like. Also, if you have a good relationship with your neighbors or lots of good memories, it might be that your home just needs a little bit of refreshing.
Is your home potentially a good long-term investment?
As we mentioned, a prudent renovation project could do wonders for the market value of your property. If your neighborhood is a relatively popular location but your house is small, you could expand it now and earn a lot of money in the long run. Likewise, if there are development plans that will put your neighborhood in the spotlight in the next few years, you might want to reevaluate your decision to move.
Compare the costs of moving to the costs of renovations
A significant factor in your decision will certainly be the overall cost of each option. If you plan to purchase a new home, you will have to factor in the price of relocation, taxes, real estate fees, and potential renovations. However, if the house you live in now is in disrepair, then the combined purchase and relocation expenses may even be lesser financial evils.
Of course, this also depends on the scale of the planned renovations and the contractor’s skills and pricing. A rough estimate you can rely on states that a renovation costs around $200 per square foot. Yet, to account for unforeseen expenses, add another 15%-20% to the total sum. You mustn’t underestimate your renovation budget. The worst possible situation you could put yourself into is having a half-finished home due to bad budgeting.
Caption: Time, money, energy – factors you need to think about when you ask yourself whether you should renovate or relocate.
Alt-tag: A man renovating the ceiling
Consider the time and the energy you have at your disposal
There is also the issue of time. How much time do you have at your disposal? Can you balance the renovations with your daily responsibilities? Sure, moving to a new home might seem very challenging from your perspective. However, this is one of the common misconceptions people associate with relocations. In reality, renovating may require even more energy and perseverance than your average move. The problem with remodels is that they tend to drag out ad infinitum. In sum, it just as well could be that you have greater control over a home purchase and the subsequent relocation than a comprehensive remodel.
All in all, we hope you are one step closer to deciding whether you should renovate or relocate. Weighing your options carefully is inevitable, so do not feel pressured to rush into the decision.