Costs to Renovate or Relocate
When determining whether you should move or renovate your current home, one of the main factors will likely be money. To help with the decision, make a list of the costs associated with each option.
Moving into a new home will require closing costs, a down payment, the home inspection, deposits for utility companies, and the cost of the moving company. Plus, you may have to make some repairs to get your current property ready to put on the market.
If you choose to remodel, you’ll need to budget for materials, the contractor, permitting fees, and possibly a storage unit and short-term rental, depending on the work that needs to be done. There may also be hidden costs like unexpected repairs. For example, if the kitchen floor joists are water-damaged and rotting, structural repairs will have to be made before new flooring can be installed.
Attachment to Your Home
A major factor in deciding whether to buy a new house or upgrade your current one is your family’s attachment to the community. If the property is in a great location, near your child’s school, and convenient to doctors, dentists, parks, and shopping, you may want to stay in the home. Your kids may have friends nearby and you might enjoy having cookouts with the neighbors across the street.
On the other hand, if your children are now in college and your favorite neighbors have moved away, you might feel less attached to your current location. Look at properties in other areas to see if the amenities are appealing.
The Real Estate Market Can Help You Decide to Renovate or Relocate
Talk to a real estate agent about the current market. If properties are in high demand, you could make a significant profit if you sell your house. But if you’re staying in the same area, it might be difficult to find a new home with higher prices and limited inventory.
When considering renovations, it’s helpful to look at properties nearby. What is the maximum value for homes in your area? While renovations can boost property value, spending too much on upgrades means you won’t get a good return on your investment if you decide to sell later.