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Should You Remodel or Move?

There are many factors to consider when deciding whether it is time for a homeowner to remodel their current home or move into a new one. As our lives change, it would be nice if our living space adapted to those changes, but it’s not always that easy.  

When it comes to deciding which option is better for you, it’s important to know that they both have benefits and drawbacks, and there are some questions that should be considered before making the decision.  

If you’ve found yourself wondering which option is better for you, then be sure to keep reading on. This post will cover what you need to know in order to make an informed decision about whether or not it is time for your family to remodel your current house, or if it’s best for everyone involved if you move into a new home.

You Should List Your Home for Sale

According to a survey put out by Property Wire, 76% of American’s said they would rather upgrade their current home than move into a new one. The driving force behind so many American’s choosing to stay in their current house is the emotional attachment to it. However, emotions aren’t something you can take to the bank. Here are a few reasons you should consider moving over remodeling.

Abundance of Equity

The number one reason for owning a home is to generate wealth. As the value of your property goes up, the more equity you have in your home which allows you to use that money as a down payment toward another home.

According to Black Knight, a longstanding real estate and mortgage analytics company, annual home price growth has seen a 25-year average of 3.9%. Recent data shows that between the years 2010 and 2020, borrowers gained over 6 trillion in equity.

No Wealth Outside of Equity

If you are strapped for cash, then saving up to remodel your house may take a long time. But borrowing against equity is not the best option because of the risk of losing all your home’s equity.

The amount of money you need to remodel an existing home depends on the level of work required. The average room addition costs between $20,000-$70,000. That’s why homeowners who are looking for more space often decide to move instead.

Stay Put and Plan a Remodel

If you’re looking for a house that allows you to customize to your taste, a home renovation is most likely the better route for you to take. Here are some signs that you’re better off staying put.

Location of Your Home

If you truly love where you live, and there are no homes available in your town that would be able to provide you with what you’re needing in a house, you’re better off remodeling. In 2019, the Federal Reserve Bank of New York conducted a study and learned that 47% of respondents identified themselves as being attached to their towns.

Lack of Resources

When you sell a house, you want to make sure you’re able to afford a new one. The same study from the Federal Reserve Bank of New York learned that 15% of respondents felt like they were “stuck” or didn’t have the resources they needed to make move. 

Lack of Time

If you’re a busy person, like many are these days, then the prospect of moving may not be the best idea for you. With so many buyers in the market today, finding a new house could take a lot of time. If you don’t have the time needed to tour houses, or the thought of entering the market right now stresses you out, remodeling is going to be the better route.

Making the Decision

When it comes down to make the decision, only you can decide what works best for you and your family; but it’s smart to have all the facts upfront.  That way, you can make an informed decision. If time is a concern of yours then remodeling may be your best bet; but if not, and you’re feeling stuck in your current home, it might be worth considering new beginnings with a move to something completely different! Take some time to explore all the possibilities before making any decisions on what’s going to work for you and your family.