How To Decide Between Remodeling Your Home Or Relocating
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Need Help On Deciding Whether To Remodel or Move?
The situation has finally presented itself. You've begun to realize that you want or need more space or perhaps a different layout in your home living environment. By now, you've begun to wonder whether you should remodel or move. Keep reading because you'll discover important considerations for making your choice.
The Need To Make A Change
For my wife and I, we were living in a cozy, older ranch-style house. The rooms were small, and the layout & flow were just off when it came to positioning couches, TV placement, etc. The kitchen was small, and there was only room in our house for a kitchen table or dining room table - but, not both.
Then, our baby arrived on-scene. Not too long afterwards, we started tripping over the large plastic toys that were multiplying seemingly weekly. That's when we realized it was time for a change.
What's Driving Your Change?
So, what is it that's driving YOUR desire to change your living environment? Is it a new child? Do you want a bigger kitchen? Want a master suite & bathroom? A room addition? Or, do you want to change everything?
It's just a fact of life - things change over time. Most of us tend to collect things along the way, and we find places to store them in our homes. Children are born. Sometimes, our jobs provide nice financial bonuses along the way. Sometimes it's because we've gotten ideas from a home remodeling ideas show or website.
OK, so you've got ideas on want you want to change. Now, what are your options to get what you desire?
The Options To Remodel or Move
Renovating your home - or moving to another house - is a big step in life. And, there are a number of things to consider in making your decision.
One of the initial things to assess is how the economy in general is doing - and more specifically how the economy in your local area is doing. Are the overall - and local - markets in an uptrend or a downtrend? Is the job market strong - or, is it a little dicey? Are homes in your area - or the ones in another area that you may be interested in - increasing in price or decreasing? Does it seem to be a good time to make a big change - or would it make more sense to you to just stand pat for now?
If things are generally looking good - or you happen to have the financial wherewithal to proceed, let's take a look at the option to remodel your home.
Naturally, an initial plus for remodeling your home is that won't have deal with the hassle of moving elsewhere - at least on a permanent basis. And, if you happen to really like you're current neighborhood and/or location, you get to remain there.
Also, you'll be able to have bigger spaces, a better layout, that kitchen for entertaining, etc. - all while living in the same neighborhood. This is the option my wife and I chose.
Let's take a look at the pros and cons.
Tip - Check with one or more Real Estate Agents that you trust to get their opinion on the home remodeling you have in mind for your house. Find out what they think about your project specifics, and ask them about estimated resale value for your neighborhood.
~ Don Roberts
Tip - I've heard from multiple General Contractors that homeowners typically end up spending 25% more on a home remodel project than they had expected to. On my home renovation, we shot well past 25%.
~ Don Roberts
Moving is a great big step. For some people, moving is no big deal. But, if you've comfortably settled into your current neighborhood over the years, it can be stressful to move. Be sure to have a clear understanding of the pros and cons of your situation. Here are some to consider:
Tip - Do you want more room - or do you want more rooms? Asked another way, "Do you want to have more space in a given room, or do you actually want more rooms in your house?"
~ Don Roberts
How To Determine Whether To Renovate Or Relocate
The following questions will help you determine whether to renovate or relocate:
Do You Love Where You Live?
If you love the area you live in, have an easy commute to work, love your neighbors, and/or want to keep your children in the same school district, then you may decide to simply stay put. If you don’t like your neighbors, have unbearable traffic and/or crime in your current neighborhood, and the neighborhood you are moving to is in a better school district - and it is nearer to your place of work, then relocation may be the best option.
Do You Want to Change Everything or Just Some Things?
If all you need is a little more space, such as a larger kitchen, a nice master bath, or an added family room, then renovation may be a much better alternative than relocation. It does not make much sense to spend a lot of time, energy, and money moving to a different house while you can make a few home improvements to your existing house to make it your dream house.
Is Renovating Economically Sensible?
You need to consider several different factors when it comes to this question. It's not just about the cost of renovation, but rather associated costs such as temporary accommodation while the property is being renovated. It does not make economic sense to renovate if it will lead to a significant increase in the value of your property relative to neighboring properties. In other words, it's probably not a good idea to over-build in your neighborhood and have a house that is worth 2x the value of the other houses in your neighborhood.
What About the Taxes?
Numerous tax laws affect the calculation of taxes upon the sale of a property and the purchase of its replacement. It is possible for a married couple to exclude up to $500,000 in gain from the initial house and tax credits might be available depending on when you buy the property. And, there may be specific state or local tax situations to consider. For example, in California, with some recent changes, you may or may not lose out on the special treatment that Proposition 13 affords homeowners. That would be a very important consideration to take into account.
Seek professional advice to learn more about the tax implications of selling a property and buying a new one.
The Decision Is Yours
It's easy to tell when you need a new configuration or additional space in your home. The question is in how best you can achieve it. Remodeling and renovation are both used to accomplish the objective, and each can be effective and satisfying if you do it with the information presented above.
Making the right decision for your specific situation can help reduce your stress and ensure many years of good living for you and your family.