Home Remodel Ideas

Is it better to buy a house or remodel?

Table of Contents
    Add a header to begin generating the table of contents

    If you feel as though you've outgrown your current home, moving might be something you want to look into doing. It is also the busiest time of year for house hunting because housing markets across the country are heating up along with the weather.

    What should you do, however, if the prospect of moving gives you anxiety? What are your options if you like the house you live in, but not the yard or the neighbourhood? In that case, you might want to think about selecting a different course of action to pursue. After all, moving isn't the only way to acquire a larger home or improve the quality of the living space you currently have. You could also remodel what you already have, a move that is becoming increasingly popular as housing prices continue to rise and available inventory remains surprisingly low. Remodeling what you already have is a move that has become increasingly popular as housing prices continue to rise.

    You've spent some time in your house, and despite some weariness, you continue to take pleasure in living there. However, it is not any longer exactly what you require or what you want.

    Should you put the house up for sale and relocate, or should you invest in some home improvements and stay put for the foreseeable future?

    In order to provide an appropriate response to this question, you will need to consider the degree to which you are emotionally attached to the property, the likelihood that the renovations will result in a satisfactory return on investment, and the financial means at your disposal to purchase a new house. Your decision will be aided, in part, by these and other considerations.

    The following is a rundown of what many industry professionals consider to be the most important factors to consider when deciding whether to buy a new home and relocate or to remodel the one you already own and live in. Are you considering giving your home a facelift? No need to look any further! We at Hitch Property Constructions are here to assist you in the remodelling of your home.

    Home Repair FAQs

    Fixing up a house can be profitable, but investing a few hundred dollars in repairs and upgrades may not add thousands of dollars of value to your home. In fact, the average return on your remodeling investment is 20 percent or 30 percent less than you spend.

    However, the difference between repair and maintenance work is that repairs aim to restore functionality while maintenance looks to preserve functionality. Put simply, repairs are done after downtime to minimize losses, while maintenance is done to prevent unexpected asset downtime.

    What are the steps in repair aspect? Finding the deterioration • Determining the cause • Evaluating the strength of existing building or structure • Evaluating the need of repair • Selecting and implementing a repair procedure.

    One of the most common new construction Home defects is overlooked paint. You may find that some areas of a newly-built home have not been properly painted, such as basement areas, utility closets, and other out-of-the-way areas. Touch up paint is also done at the very end of construction.

    A repair is maintenance that takes place to restore a typecertificated product to "condition for safe operation." And, an alteration is maintenance that is performed that adds to and/or removes from the type-certificated product's configuration..

    The Benefit of Renovating and Staying Put

    Renovating a home can be a hassle; however, moving can be just as much of a hassle, if not more. When you buy a new house, you are committing to moving out of your current residence and into the new one that you have purchased. And there are repercussions that come with acting in this manner.

    Living in a new neighbourhood can be less convenient for a number of reasons, including the fact that you won't be as familiar with the area, the stores won't be the same, and the process of adjusting could take some time. Moving also requires you to say goodbye to the friendly neighbours you have formed relationships with as well as the school district in which your children are enrolled. That is a significant point.

    Home Renovation Ideas

    One more compelling argument in favour of remodelling: You will have a home that is customised to meet all of your individual requirements. Let's say you're fed up with the look of your old kitchen and want to give it a makeover. You might be able to find a house that has a brand new kitchen, but the colour of the cabinetry might not be to your liking. When you stay in the house you own and make improvements, you get to determine what kinds of upgrades are made.

    In addition, you might discover that remodelling is a better financial decision than moving to a new home. You are required to pay a commision to the real estate agent who helps you sell your home in exchange for the services they provide in facilitating the sale. After that, when you move, you are responsible for the costs associated with moving, in addition to paying the closing costs on your new mortgage. Renovating, on the other hand, is something that you can do on a budget quite easily if you have equity in your home. This is because having equity in your home makes it possible for you to get a home equity loan or credit line, which gives you access to the funds you need to make the improvements.

    Also, the right renovations to your existing house could give you a great return on investment, which means that when the time comes to sell it, you will be able to command top dollar for it, and in the meantime, you will be able to enjoy those updates yourself. Also, depending on the circumstances, home improvements might make it possible for you to turn your house into a source of income. For instance, if you finish a basement and turn it into liveable space, you might be able to rent it out to a tenant.

    The Benefit of Buying New

    On the other hand, there are a lot of compelling arguments in favour of purchasing a new house rather than undergoing renovations. To begin, you won't have to worry about being forced to reside in an annoying construction zone for an extended period of time. You won't have to worry about the administrative aspects of the renovation project either, such as obtaining permits and familiarising yourself with the requirements of the building code.

    In addition, if the total cost of your renovation is going to be quite high, you might find that it is in your best financial interest to look for a new house instead. In spite of the fact that you will have to submit an application for a new mortgage, interest rates are currently at historically low levels. If you have good credit, there is a good chance that you will be approved for an affordable mortgage.

    Last but not least, moving to a new residence provides you with the opportunity to take advantage of a wider variety of amenities, some of which may not be offered in your current neighbourhood. In addition, if you discover a location that has an excellent educational system, you might find that relocating is beneficial for your children after all.

    At Hitch Property Constructions, we offer a wide range of home renovations.

    Relocating

    The process of selling your old place before beginning to look for a new one can be a lengthy and involved one, but the end result can be very exciting. And if you don't approach it in the right way, it can be difficult and stressful at the same time. The following are some of the benefits and drawbacks of the process that should be taken into consideration:

    Advantages

    • You get to start over in a new place, whether it's just down the street or in a new neighbourhood, city, or state, and you get to start over with your family and all of your belongings. This is a new beginning. You will have the opportunity to interact with new people, to customise your new abode, and to become accustomed to a new environment.
    • Alternatives for financing: After you've been through the process of purchasing a home once, going through the paperwork and making the purchase will be much simpler the second and third time around. Your real estate agent will assist you in obtaining the title, obtaining insurance and taxes, and locating a reputable lender who can assist you in purchasing the house.
    • Income taxes: Because of the capital gains exemption, which can be up to $250,000 for single taxpayers and up to $500,000 for married taxpayers, the sale of your old home could result in additional cash in your pocket without the need to pay additional taxes. This is dependent on the laws of your state. In addition, there are tax credits related to the environment that may be available to you if your new house meets the requirements. It is recommended that you check with both your tax preparer and your real estate agent.
    • Exorbitant prices: When you sell your home, you are responsible for paying your real estate agent and any other applicable fees throughout the selling process. In order to purchase your new home, you need to be prepared to endure a process that is not only lengthy but also complicated and expensive.
    • Moving is a stressful process that can be made more difficult by the fact that you always find things in your old place that you had forgotten about. This leads to sorting through everything, getting rid of unnecessary items, and attempting to pack everything within a limited amount of time. It's an additional stress that, at times, can feel completely overwhelming.

    Disadvantages

    • Selling your home comes at a high cost because you will need to pay your real estate agent and possibly other fees throughout the process. In order to purchase your new home, you need to be prepared to endure a process that is not only lengthy but also complicated and expensive.
    • Moving is a stressful process that can be made more difficult by the fact that you always find things in your old place that you had forgotten about. This leads to sorting through everything, getting rid of unnecessary items, and attempting to pack everything within a limited amount of time. It's an additional stress that, at times, can feel completely overwhelming.

    Remodelling

    Remodeling the space in your current home gives you the opportunity to create new spaces, update its function to better meet your requirements, and create the ideal home for you and your family, subject to the constraints of your financial resources. Having said that, there are a lot of drawbacks associated with it, and the investment may or may not be worth it.

    Hitch Property Constructions has the best range of renovations services to help you create your dream house.

    Advantages

    • Because remodelling is done on a room-by-room basis, the overall cost of the project is significantly lower than the cost of purchasing a new home. You do not have to completely redo everything in your house, which means that your spending plan can adapt to the other things you have to take care of. In addition, there are ways to cut costs during the remodelling project, which will allow you to end up with a fantastic end result without spending a fortune.
    • An individual touch: When compared to buying a new home, which might have some of the features you want but not all of them, renovating gives you the ability to change your current home so that it fulfils all of your requirements and wishes. Why spend hundreds of thousands of dollars on a new house and then update it when you can keep your current home and gradually improve it?

    Disadvantages

    • A remodel is not the right choice if you want to completely redo your home; in that case, you should look into other options. When you consider that you could buy a new house that already has all of the modern updates, it is clear that it is not a wise financial decision to spend thousands of dollars remodelling each and every room in your current home. It would be more cost effective to redo just a few rooms in your house rather than the entire thing. It is also not worth the money to remodel your house if you are attempting to reduce the size of your living space.
    • Problems with financing: A homeowner loan, a family loan, payments to the contractor, or vendor loans might all be required for remodelling. Because you need to have equity in your home, it may be challenging to get approved if you haven't lived in the house for a significant amount of time.
    • Construction: Remodeling will leave your home in disarray for several days to weeks while the updated room is being constructed. You have the option of staying at home, which will save you some money, or staying in a hotel, which will cost you some additional money. It can be noisy and stressful at times, and it requires patience, which is a quality that not all homeowners possess.

    Other Issues to Think Through

    In addition to the factors that have been discussed thus far, there are also financial repercussions associated with either option. Borodin recommends doing the math to determine how much equity you have in your current home, the price point of what a new house will cost, and whether or not one of the options will leave you in a better financial position than the other.

    It is also important to consider whether you were able to purchase your current residence at a reasonable price or not. You may not want to start over with a larger house and a larger mortgage if you purchased your home when prices were low and housing prices are currently high in the area in which you live. You might have a lot of equity in your current home, but if you sell it and buy a home with a significantly higher sales price, you'll wipe out all of that equity.

    On the other hand, there are times when you don't have a lot of options available to you in terms of what actions to take. Vickery notes that remodelling isn't always an option because there are times when even a complete remodelling project won't address the biggest problems with your home. This is one of the reasons why remodelling isn't always an option. For instance, if you currently reside in a condominium, it is highly unlikely that you will be able to merely construct an additional room.

    Last but not least, do not overlook the possibility that moving could have tax consequences, which could either be favourable or unfavourable. Because of this, it might be a good idea to discuss the possibility of selling your home or moving with your financial planner or your accountant so that you can get a better idea of how these decisions might affect your bottom line.

    Ways to Know Whether to Remodel Your Home or Move

    Is Your Home in Your Heart?

    Whether you stay or go will largely depend on how you feel about the situation.

    "Consider your feelings about your location and the area around you, as well as your relationship with your neighbours, and think about these things in an honest way. Renovating your home could be the best option for you if you feel an emotional attachment to the location as well as a strong connection to the community around you.

    Seventy percent of homeowners who are faced with the dilemma of whether or not to move ultimately choose to remain in their current home while making improvements to it.

    A residential architect can see possibilities for home improvements that you might miss, and they can also assist you in extracting the most value and utility from the structure you already own. You could take a loan against the equity in your home to pay for the renovations.

    Can You Budget Realistically?

    When deciding whether to complete the currently assigned homework or look for new homework, it is essential to do realistic budget planning first.

    If you do choose to renovate your home, it is imperative that you create an accurate budget.

    An agent with Keller Williams Realty in Chicago named Prashanth Pathy says that a significant number of homeowners do not have a clear idea of what it is that they want. "Let's say that they have $50,000, and the contractor tells them that he can complete the work for that amount. But then they change their minds, want different materials, and it doesn't turn out how they imagined it would, and that's where the budget gets blown up."

    More Room or More Rooms?

    The desire for additional living space is a major factor in the decision-making process for many homeowners. Some homeowners, however, might be able to avoid moving entirely by redesigning their floor plan in such a way that they gain one additional room but not additional square footage.

    It is not uncommon for a roomy home with three bedrooms to be converted into a home with four bedrooms, providing a family with the opportunity to have a more functional layout without having to uproot from the house they adore. We strongly suggest that you work with a designer to lay out your floor plan and examine whether or not a different arrangement might make more sense. Moving is typically a lot more disruptive and expensive than doing this, but it could solve all of your problems."

    If you are unable to locate a suitable location for a new room?"

    Perhaps now is the right time to sell.

    Will Only a Move Be Enough?

    Is there something that you consider to be a major issue with the house that you currently live in? It could be neighbours that you can't stand, a school district that isn't all that great, or a physically constrained setting, including your home and yard, that will never be able to satisfy the requirements of your expanding family.

    If this is the case, then you have only one option left: to relocate.

    However, it's possible that the issue is that you essentially can't afford the home that you currently have, in which case a move down, rather than up, is required to solve the problem.

    This happens quite frequently. According to the findings of the 2016 "How Housing Matters" survey conducted by the John D. and Catherine T. MacArthur Foundation, more than half (53%) of American households struggle to make their monthly housing payments and have been forced to make concessions or alternatives in order to pay for their homes.

    How Long Will a Renovation Take?

    A great number of individuals tend to ignore the fact that remodelling requires "a serious and extensive commitment, both in terms of time and effort, over the long term. They need to wrap their heads around the process, with time being the primary and most important factor to take into account.

    A complete remodel of a kitchen that includes new flooring, countertops, cabinets, and appliances can take anywhere from three to six months to complete. It is possible that the job will take longer if the ductwork, plumbing, or wiring needs to be addressed. Comparatively, adding a room can take as little as one month or as long as three, while remodelling a bathroom can take anywhere from one to three months.

    You should get ready to exercise a lot of patience. Living in a space that is undergoing renovations can be an extremely challenging experience."

    Will You Earn Back the Upfront Costs?

    Try to estimate the return on investment you'll get from either selling or remodelling your home before making a decision between the two.

    When it comes to upgrades, "What is the typical return on investment for the home improvements you are contemplating?"

    The majority of improvements made to a house do not result in a return on investment in the form of a higher final selling price. While some renovations are able to recoup up to 90 percent of their initial investment, others don't even come close to covering their initial investment.

    Ask yourself whether you'll be in the new place long enough to recoup the costs of taking out a new mortgage and moving it has traditionally taken seven years to earn back those initial costs. If you're thinking of selling your current home and buying another one somewhere else, ask yourself whether you'll be there long enough to earn back those costs.

    Would You Be ‘Over-Improving’?

    The possibility that you will "over-improve" your house in comparison to the homes of your neighbours is an argument that can be made against remodelling.

    A home that has been overimproved will not fetch the same price in its current location as it would in a neighbourhood that contains homes that are comparable to it.

    "When you are in a neighbourhood that has starter homes and smaller homes, adding a large addition or doing an extensive renovation may not yield the return one would expect to see as a result of their investment.

    With one of Lawton's listings, the sellers had upgraded the first floor to include a spacious and tasteful suite that would function as the fifth bedroom. Even after the sellers knocked $30,000 off the asking price, prospective buyers opted for other, more compact homes located within the same development. As a result, the house remained on the market for an extended period of time.

    Move or Stay Put? Here's How to Decide

    Realtor Don Cramer of Urban Nest Realty in Las Vegas says that there are a lot of questions that you can ask yourself that will help you decide whether or not you should sell your home or stay put. Although there are no rules that can be followed to determine whether or not you should sell your home,

    Your first order of business should be to determine what your plans are regarding housing in the subsequent five to ten years. If you are happy in your home and it meets the needs of both your career and your family, then it might make sense to remodel it and make the most of the space you already have. On the other hand, if you are planning to relocate within the next few years regardless, you might want to think twice about renovating your current home and give serious consideration to staying put instead. Because it is unlikely that you will get all of your money back out of a remodel when you sell, spending a tonne of cash on a huge project may not make financial sense given the nature of the situation.

    According to Cramer, you should also think about how your lifestyle will impact your finances, both now and in the future. Are the children now adults who have graduated college and begun their own families? If they are or will be soon, you may not need a larger home at all and could instead benefit from a straightforward remodelling project to improve the flow of your home or make it more comfortable.

    Also, consider your finances. Both moving and remodelling have the potential to be very expensive endeavours. Make sure that whichever choice you make is within your financial means before making the decision. You will eventually be responsible for repaying any money that you borrow, so you should be prepared to make payments on the house of your dreams for a considerable amount of time.

    As a homeowner, what course of action would be most beneficial to you? Is it time to move into a new home, or does the one you have just need a few fixes before you can call it a home? No matter which option you go with, you will need to prepare the necessary paperwork, finances, and professionals in advance of your procedure.

    Scroll to Top