Should I Purchase a New home or Renovate Mine?

by | Last updated Mar 25, 2019 | Published on Mar 22, 2019 | Residential

Main Image Home Renovation

Moving into a new home is always exciting. But after a few months, you may start to wonder if it’s the place you want to call home forever.

Or, maybe you’ve lived in a specific area for a long time and love your neighbours, but need more space at home. This is a dilemma that many growing families face.

Performing a home renovation is a pretty typical home ownership cost that most people expect to encounter at some point. But how do you choose between buying a new home or fixing up your current one?

Check out the seven factors to consider when deciding if you should sell or renovate your home below.

1. Your Financial Situation

The first thing you need to consider is whether or not you can afford to buy a new house or fix up the one you have. Take a long, hard look at your financial situation and see how much you have to budget for a change.

Keep in mind that selling your home does not just mean buying a new one. It also means hiring a realtor to help you sell and opening your home up to strangers while advertising it.

Then you need to pay closing costs, realtor fees, etc. You must hire movers and pack up your house and unpack it all again. This often costs more than you may have planned for.

Renovating a home, on the other hand, often costs much less than that. The national average of a full house remodel sits closer to half that amount, around $40,000 to $50,000.

Of course, that home ownership cost varies depending on the size of your home and the extent of your renovations. It also gives you the option to spread those costs out over a few months or years rather than needing to pay them all at once.

2. What Kind of Space do You Need?

Another factor to consider is whether you need more bedrooms or more room overall. Is it closet space your after or are you trying to squeeze in a whole extra bathroom?

Check with a knowledgeable contractor before you completely write off your current home, even if you need extra rooms. You can often gut a spacious house and redesign it to give you the additional rooms you need.

3. Legality and Ability

Every city and municipality has its own rules regarding building and renovations. They regulate if you can build up, down, or around your property.

Most major renovations require a specific permit for legal approval. Requesting a permit for renovation means an inspection of your home. If the inspector finds outdated elements like electrical wiring, they may demand you fix those issues at the same time.

You also need to consider if your home can support an additional story or if you can move certain walls. A qualified contractor can let you know what’s possible and what’s not.

4. Length of Renovation

When deciding between buying a home and renovating, you need to determine how long you can tolerate each process.

Most home renovations take at least a few weeks, if not several months. Consider if you can handle the disruption and how long you can tolerate it.

If you prefer to put your home on the market, remember that’s a gamble as well. You never know how long it will take to find a buyer, or if you can find a new home around the same time.

Secondary Image Home Renovation

5. Risk of Over-Improving

Even if you believe you’ll stay at your current home forever, you still should consider a future where you may need to move. Renovating your home puts you at risk of “over-improving” when comparing it to other houses in your neighbourhood.

So if you do plan to sell eventually, the higher price tag on your house versus the other homes in your area puts you at a disadvantage. Buyers looking in the lower price range won’t necessarily want to pay more for extras they don’t need and can’t afford.

6. Effect on Property Taxes

You should also consider whether or not any renovations will affect your property taxes. The government bases your property taxes on your home’s value.

An increase in your home’s value, therefore, can trigger an increase in your property taxes.

7. How Much You Love Your Current Home

Finally, take a look around your home right now. How does it make you feel?

Think about the last time you pulled up into your driveway and walked towards your door. Did you feel proud of walking in? Were you happy to open the door and step inside?

How you feel about your current home plays a huge role in whether you should sell or renovate. If there are only certain aspects of your home that you don’t like, but you love it overall, then you should probably start budgeting to fix up things.

If you can’t envision any changes that would make you love the house rather than just like it, then you may want to start talking to a realtor. You could also speak to a contractor or architect to see if they recognize some possibilities that you missed.

Minimize Home Ownership Cost: Hire a Quality Contractor

Now you can see how renovating your home rather than moving costs less while still letting you adjust things to your particular tastes. You also save yourself the hassle of putting your home on the market, trying to find a new one, and then packing and moving.

Did you know certain renovations can even cut down your home ownership cost on things like heating and pest control?

Hiring an experienced contractor like Kon-Strux Developments in Calgary, Alberta will help you transform your current home into your dream home. Contact them today to see how easy it will be to upgrade your kitchen or revamp an outdoor living space within your budget!

How you feel about your current home plays a huge role in whether you should sell or renovate. If there are only certain aspects of your home that you don’t like, but you love it overall, then you should probably start budgeting to fix up things.

If you can’t envision any changes that would make you love the house rather than just like it, then you may want to start talking to a realtor. You could also speak to a contractor or architect to see if they recognize some possibilities that you missed.

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