What to consider when deciding whether to renovate your house—or buy one that’s new to you
In 2017, 11 percent of the U.S. population moved—with 62 percent staying in the same county. That same year, American homeowners spent $316 billion on home remodeling.
Whether you need extra space for a growing family or you want more home amenities, making the choice to buy a different house or to update the home you’re currently living in is a combination of considerations, including your budget, your location, and whether or not the desired changes to your home are possible.
The advantages of staying in your current home
Before looking at new homes and dreaming of a larger yard or an extra bathroom, consider what you already have. Do you like your neighbors? Are you in a good school district? Is your mortgage paid off, or nearly paid off? Buying a new house comes with a long list of unknowns that can be avoided by staying in your current home.
From a budget perspective, fixing up a house is frequently the more cost-effective choice. If you’re considering repairs, upgrades or a major remodeling project, we can help. Ask us about a home equity loan or home equity line of credit to finance your home projects.
The disadvantages of staying in your home
While home renovations are generally going to be less expensive than purchasing a new-to-you house, some fixes simply aren’t possible. If you’re a recent empty-nester and you want to downsize, the most you’ll likely be able to do is to a remove some walls from your home and turn two rooms into one. Expanding your home won’t be possible if your property is too small to accommodate an addition, or your house isn’t designed to have an added second story
It’s also worth considering the renovations will add value to your home. Chances are good that the cost of your renovation won’t increase the value of your home at the same rate should you decide to sell it in the future. Also, renovations often end up costing more than you had planned.
Finally, determine whether you’re prepared to live in your home during renovations, which can take weeks or months.
Advantages of moving to a new (to you) house
The process of buying a new house may be less intimidating than hiring contractors, getting estimates and living through construction. A new home can also provide you with a fresh start, if you’re currently dealing with difficult neighbors or other neighborhood problems.
Ready to purchase a new home? We can help you with a mortgage loan!
Disadvantages of moving to a new house
While purchasing a new home can prevent you from construction headaches, it can also leave you with a variety of added costs that might have forgotten about since the last time you purchased a home, including closing costs, home inspections, moving costs and changes to your utility and home maintenance costs.
And while the average time it takes to sell a house is three weeks as of 2017, your old house may not sell immediately. If you decide to move ahead with buying your next house, you may be left with two mortgages to pay.
Need More Help?
Do you have more questions about fixing up a house or buying a different one? We can help you determine what is best for your budget, whether you need a home equity loan for renovations or a mortgage loan to purchase a new house. Contact us and we’ll walk you through the options that will work best!