When you’re ready to make a change in your living situation, you have two options: renovate your current space or move to a new one.
There’s no one-size-fits-all answer to this dilemma. Instead, you need to consider your own circumstances to make the right decision for you and your family. Here are five questions you should ask yourself to aid in making your final decision.
1. Which One Will Benefit My Household More?
When making a huge decision to renovate or move, you need to consider the advantages and disadvantages. For example, maybe it would be more advantageous to move to another house for a shorter commute or a better job opportunity, among other common reasons one might move. On the other hand, it might be better to keep your current home and renovate it to stay in a great school district.
Write out a list outlining the pros and cons of moving and renovating with your loved ones to help create a visual to guide your decision.
Think about how each might affect the family emotionally and mentally. Are you ready for the inconveniences that either will bring?
Additionally, consider the costs associated with each to see which one would be more expensive. It may be cheaper for you to move and sell your house or just the opposite. This will be important in reaching your long-term financial goals.
2. What Does the Market Look Like?
The real estate market fluctuates and very seldom remains the same. Before you decide to move out and list your home, you need to know if you’ll make a profit from the sale. The best time to sell your house is when the market is booming and places are selling quickly. You’re more likely to make a quick sale and receive more for your home than you originally paid.
On the other hand, it’s not such a great idea to sell when the market is slow and houses are not selling. If the market is not moving at a good pace, you might need to reconsider selling your house. It may be more beneficial for you to wait and renovate it. Do not sell your home if you have to put it on the market for less than you paid.
3. Will Renovating Add Value to Your House?
Most people assume that they’ll automatically make a profit by renovating their homes. This is not always true.
Another misconception is that renovations will always be cheaper than moving — but this will depend on each situation. The national average for home renovations costs about $46,748 but may increase with additional unforeseen home issues. You won’t know how much remodeling will cost you until you start the process, especially with older homes. In most cases, the price will be higher than your contractor’s quote.
Most homeowners cannot afford to pay for the remodeling out of pocket and look for reasonable loan options to help them cover the costs.
Once you shell out all the money, you still may not make a return on your investment. Some renovations will earn you more profits while others may not. Always do your research to find out which one will benefit you in the long run before jumping the gun.
4. Will You Be Able to Find an Affordable Home with What You Need?
Finding the right place to move to is far from easy. Consider how difficult it would be to purchase a home after selling yours.
When the market favors sellers, it doesn’t typically favor buyers. Therefore, buying a house for a reasonable price might be more challenging. Not to mention the time crunch you’ll find yourself in to secure another home. It typically takes around four to six months to find a new house.
You may find a great house that meets all your needs, but you may find yourself in bidding wars in a competitive market. You may lose the bidding for the home you desired and have to go back to the drawing board, or you may pay double what you originally planned. Constantly getting your hopes up to have them dashed to pieces can take a toll on your family mentally and emotionally. However, it’s one of the compromises you’ll have to make when moving.
5. Are You Willing to Live in a Construction Zone?
Renovating your house takes time and often longer than what you planned. You’ll probably have to stay in your home during the remodeling. Living in a house under construction is not ideal, and you might have to make some lifestyle changes.
If you’re planning a significant renovation, you can’t always remain in your home because it’s unsafe. In this case, you’ll have to seek another place to live until everything is finished. If you’re not fortunate enough to have family or friends to stay with, you’ll have to stay at a hotel. Hotels can cost you more money on top of the remodel.
Living with friends or family can strain relationships and cause issues. It often takes away your privacy and forces you into smaller living arrangements.
A hotel is usually small and may not accommodate your family with one room. You might have to get an additional hotel room to allow everyone to be comfortable, which will cost you more. If you’re not thrilled about any of this, moving might be a better option for you.
Need to Sell Your Home or Money for Renovations? Contact The Associates Home Loan of Florida
Choosing to renovate or move is tough. However, taking all of the above information into consideration should help make it easier to decide. Think about your specific situation, do your research, and shop around to find the most cost-effective and convenient solution.
At Associates Home Loan of Florida, we can help you with whatever you decide. We provide loans for new homes and renovations, so you can rest assured that we have you covered. Contact us today at Associates Home Loan to learn more about financing your decision, whether you renovate or move.