Is it worth doing work on your current home or shopping around for a home that has the features you need?
I LOVED this article by Susan Meyer on The Zebra comparing the pros and cons of selling a home and purchasing a new one vs renovating a home. If you want a synopsis, keep scrolling down!
Pros of relocating Purchase a new investment Selling your current home and purchasing a new one can be a great opportunity to upgrade your portfolio if you’ve got equity on your side. If your home is now worth more than what you owe, it may be a good time to sell. Or maybe your current investment is no longer affordable, and you are looking to downsize. If so, you’re not alone. A study found that 53% of Americans have struggled to make housing payments and have been forced to make trade-offs to make ends meet. Downsizing can help alleviate financial strains and let you kick outstanding debts to the curb. Gain a new perspective Are you feeling stuck or complacent in your current home? Sometimes the grass really is greener on a new lawn.
Jot down a list of things you like and don’t like about your current neighborhood, so when you do start looking at new houses you can be mindful of amenities you’ll enjoy. Avoid the stress of renovations Moving allows you to get a house that fits the needs of your lifestyle or growing family without requiring you to live in a construction zone. With the average renovation in the U.S. costing $46,503 and the average gut and remodel a whopping $150,000, moving could save you a headache — and save your wallet. Cons of relocating Pay for moving costs While selling your home helps build equity and can improve your investment portfolio, it isn’t free by any means. There are selling and moving costs to consider on top of the cost of the new house you will ultimately purchase.
Add stress to your search Six out of 10 people find moving to be a stressful life event. You should take this added stress into consideration if you’re still on the fence about moving. Compromise or spend more time looking Just because you want to move out of your current home doesn’t mean it’s going to be easy to find a new one that meets all of your standards. It can be incredibly difficult to find a house that is in a desired location that also fits your budget and needs.
Pros of remodeling Customize to fit your needs If you already have a house that you love, doing a remodel is the simplest way to live in a house that fits your needs. Increase the value of your home Renovating is one of the best ways to strategically improve your home value, which means more money in your pocket when you eventually sell. Grow your house’s worth with smart projects and additions, and your net profit could skyrocket down the line.
Save money on moving Moving is stressful — and it’s expensive upfront. The cost of moving is especially wasteful if you are only gaining minimal equity from your home sale. Cons of remodeling Risk losing money on your investment Spending money on construction is always a risk because not all home renovations pay off. If you are renovating solely to increase your home’s worth for an eventual sale, do your research on what renovations have the biggest return on investment. Face hidden costs or delays Renovations rarely cost what the contractor originally quoted you. Structural changes, building codes, and pest and rot damage are some of the common issues homeowners run into during a remodel. Live in a construction zone Much like hidden costs, the time renovations take often lasts longer than what’s initially expected. During this time, you’ll be living in a construction zone, or possibly living offsite (which costs even more.) You may also be boarding pets, eating takeout, and sharing bedrooms with family members as the remodel takes place.
Most people who purchased 3-5 years ago have a lot of equity in their homes, but it's still a difficult decision to make when you have to choose do I love it or do I leave it?
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