When a family’s needs have changed and the house they are living in does not work anymore, should they buy a different house or remodel the home they are in? Another reason to consider a house’s suitability for renovation is when a person is thinking about purchasing a house that has problems. Then, a home might be in a good neighborhood and the right size but suffering from wear and obsolescence in the kitchen and bathrooms.
Moving or Remodeling a difficult Choice
Have you outgrown your existing home? Is the home older and suffering from wear and tear, with inadequate bathrooms, kitchen, and systems such as electric, plumbing, and HVAC? Is the roof in need of replacing? When you purchase a new home, all of these problems are solved and the costs included in the mortgage. But, how do you get the money for the major updates your house needs? If the roof is the main problem, you may seek services from wildwoodroof.com or other licensed local roofing companies.
Remodeling may be more cost-effective in the long run than moving to a new, more expensive home. If you have built up large equity in this house, you can refinance to get the money to remodel, or you can take out a home improvement loan. It is important to do a little research and compare the costs of remodeling vs. the cost of moving to a new home with higher mortgage payments.
To start this comparison process, hire a local home inspector to go over the existing home and all the systems, roof, and structural elements. This will give you a baseline for remodeling needs for the home. Then, make a plan for the needed repairs and changes. Have several local remodeling contractors give you input and estimates for doing that renovation work. Now, see if you can borrow the money to cover the renovation costs.
Visit a Realtor and have them give you a market analysis on your home as it is. This will give you a probable selling price. Then, have them show you homes in areas you like and with the features you need. What is the price of the homes you like? Will the money you get for your existing home cover a good downpayment on the new house? How much will the new monthly mortgage payments be? Can you get a new mortgage at the interest rate and monthly payment you need?
Staying In the Existing Home?
In this new real estate market, many families are finding it more difficult to find a new home they can afford even if interest rates are down. The ideal home might be too expensive for the family budget. Some of the advantages of remodeling include the following.
- You can remodel the home you live in to meet your individual needs.
- You may be able to pull equity out of your home to pay for the renovations you want. Or, you could use your home as collateral for a home renovation loan.
- You get to remain in the neighborhood you have ties to. The kids get to keep on attending the school they are used to and playing with existing friends. You stay in a neighborhood that has all the amenities you are used to and like.
- It is expensive to move and purchase a new home. Selling the existing house costs money, the moving company costs money, and the purchase of a new home has costs in addition to the mortgage. Once you have the new house, you may need to spend money to get it exactly as you want it. These costs all add up.
Some problems that may occur with remodeling include the following
- When the remodeling is in process, additional problems can come to light, such as plumbing or electrical issues, foundation problems, or structural issues. This may mean added expenses. It is important to have an additional contingency fund in addition to the original remodeling budget.
- Remodeling can mean inconveniences for the family. It is not easy living in a construction zone. It can be stressful for everyone. It may be necessary to move out of the home during the worst of the remodeling process. There is stress involved in making all the remodeling decisions during the process and picking the products and finishes to be used.
- Homeowners should not plan on getting all their money back from remodeling when they sell the house. Remodeling should be undergone to make a home function better for the family, not make a profit.
Moving to a New Home
For many families, the considerations about moving come down to time, convenience, and cost. Can you afford to move? If everything is a go for relocating, there are advantages and disadvantages to consider.
- Moving can give a family a fresh start. Maybe there are problems with the old neighborhood that a family wants to leave behind. A family might be searching for better schools and amenities. This move might mean living in a better neighborhood closer to work and school.
- The new home and neighborhood could be good for family relationships. This new adventure could build family closeness and cooperation.
- Some families actually see financial benefits from moving to a new home. There may be tax advantages to buying a new home.
Disadvantages must be considered
- Moving to a new home has hidden costs that must be considered. Movers are expensive, selling the home and buying the new home come with a Realtor and closing costs that really add up.
- Moving a whole household and family can be a real nightmare logistically. What do you keep, sell, or give away? Moving takes time and effort. Belongings can be damaged or lost in a move. Then, the closing of the existing home and the closing on the new home might not line up correctly. What if you need to be out of the old house two weeks before you can move into the new house?
- Once the family is moved into the new home, everything will be unfamiliar in the house and in the neighborhood.
Each family must decide whether moving or remodeling will work out the best to meet their family’s needs.