Renovate or Move?

Renovate or Move?

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Should You Renovate or Move?

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If you’re a homeowner who is feeling unsettled in your current living situation, you might find yourself daydreaming of a new home to call your own. You don’t necessarily need to start packing your boxes yet, though.

Deciding whether to renovate or move is a personal choice individual to every homeowner, and there are pros and cons to both options.

Right now especially, people are spending more time at home. Use this quiet time to reflect on which option is best for you and your family. While renovating your home does require upfront costs and living in a construction zone, a majority of homeowners find moving to be the most stressful life event, even worse than divorce.

Below, we discuss the pros and cons to both renovating and relocating, and we also have a fun flowchart to help you decide whether to renovate or move!

Questions to Ask Yourself Before You Decide

Should you renovate or move? It’s a question most homeowners will eventually find themselves asking at some point in their buyer’s journey. While you may be leaning towards one option already, it’s important to ask yourself these questions before deciding.

1.    Which option is cheaper?

Renovating and moving both come with their share of expenses. Renovations typically involve more upfront costs, yet depending on your mortgage situation, moving could cost you more in the longterm.

2.    Is your family emotionally ready to move?

Consider your family’s attachment to your current home before you decide to move. This may be the place you have built lasting memories. Are you ready to start building memories somewhere new, or would you rather customize your current home to fit your needs?

3.    Is it a good time to sell?

Will you be getting the most out of your current investment if you sell right now? Before putting your home on the market, it’s a good idea to talk with your realtor and the current market landscape.

Costs and Benefits of Renovating

If you love your current neighborhood but feel like you’ve either outgrown your home or gotten sick of its features, renovating may be the best option for you. After all, renovating lets you expand your current living situation to fit your needs. Renovating can also increase your home’s value, so when you ultimately do sell, you’ll be able to profit off of the changes you make.

Renovations can cost anywhere from $40,000 for a home addition to $150,000 for a full gut and remodel. Adding new features such as a swimming pool often increases your homeowners’ insurance, and hidden costs during construction tend to spring up during a remodel.

Yet these costs and headaches are often worth it if you truly love your neighborhood and find yourself in a great school district to raise your family in.

Costs and Benefits of Relocating

If you don’t love your neighborhood or find your neighbors annoying, or if you are looking to move school districts or score a shorter commute, relocating may be the better choice for you.

Be wary: moving is very stressful, and not just on moving day. The process of selling your home, finding a new one to buy, and moving in will likely take, at the very least, three months, during which time there will be uncertainty, anxiety, and a growing list of todos.

Homeowners decide to relocate for a number of reasons, the top being to upgrade their home (17%). If equity is on your side, meaning your home is now worth more than you owe, moving could be a great opportunity to upgrade your portfolio.

Still, deciding whether you should renovate your home or move? Check out this flowchart from The Zebra to help you choose!