Renovate Or Move Homeowners Expert Advice
Renovate or Move? Expert Advice for Homeowners
Deciding whether to renovate your current home or embark on the journey of finding a new one is a common dilemma for many homeowners. After all, few people find their "dream home" right away, often settling for a space with potential rather than perfection. But as years pass and life gets busy, those renovation dreams can feel overwhelming, leading to the crucial question: Is it easier to renovate or simply move?
Navigating Your Home Dilemma: What Real Estate Experts Say
If you're stuck between improving your beloved home and starting fresh somewhere new, you're not alone. Real estate professionals weigh in on the factors that should guide your decision, from market conditions to your personal lifestyle and financial outlook.
Consider the Current Housing Market Inventory
The first step is to assess the current housing market. If you live in a highly competitive area where properties are scarce or bidding wars are common, finding a new home that perfectly meets your needs can be a challenging and time-consuming endeavor. In such a market, investing in your current property might be a more practical path.
Is Your Location Ideal?
Beyond the house itself, consider your lifestyle and community ties. Do you love your neighborhood? Are the schools excellent, and are your friends and family nearby? David Kent, a realtor and owner of Charleston Home, emphasizes factoring in your community's role in your daily life. He chose to renovate to keep his teenage daughters in the same school, highlighting that the disruption of moving wasn't worth the benefits of a new house further away. If your location is a significant asset, renovating allows you to preserve that.
Calculating the Costs: Renovation vs. Moving
Financially, moving costs are often bundled into a new mortgage, making them seem more manageable. Renovations, however, typically come with out-of-pocket expenses that require careful financing. Kent warns against dipping into retirement or college funds and points out that renovations often exceed their initial budget by 10 to 15 percent due to unforeseen problems (like opening a wall to discover unexpected issues).
For major renovations, you’ll need to factor in not just construction costs, but also designer fees, engineering costs, and permitting fees. These can add up quickly. Smaller projects like painting or updating a kitchen are usually more manageable, but extensive structural changes might even require you to find temporary housing, adding to the overall expense and inconvenience.
Living Through Construction: A Reality Check
David Kent offers a blunt but realistic perspective on renovations: "It costs more, takes longer, and is more cumbersome than you think." While minor updates might cause temporary inconvenience, large-scale projects involving structural changes, moving walls, or adding extensions can be significantly disruptive. You'll need to research municipal zoning requirements to ensure your dream renovation is even possible. For truly undersized homes requiring substantial additions, moving might simply be more practical and less stressful.
Understanding Your Return on Investment (ROI)
When clients ask whether to renovate or move, realtor Drew Coleman, founder of Opt Real Estate, turns to data. He uses a Cost vs. Value Index to determine if a renovation will actually add value to the home in the long run. This index shows which improvements, like a mid-range kitchen remodel, are likely to recoup their cost upon sale, and which might not significantly boost your equity, even if they improve your enjoyment of the home. Sellers are often surprised by regional data that reveals which upgrades truly impact marketability and value.
Prioritizing Your Quality of Life
Ultimately, if moving isn't a viable option, renovating offers a unique benefit: an improved quality of life. Even if a renovation doesn't provide a huge financial ROI, it can significantly enhance your daily happiness and the functionality of your home. As Coleman puts it, "If your kitchen were laid out differently and it would take half as long to prepare your meals, that’s a value add to your life. There's a value in finding peace and enjoying your home more."
Renovate vs. Move: A Quick Comparison
| Factor | Renovate | Move |
|---|---|---|
| Location | Stay in a cherished neighborhood and community. | Opportunity for a new area, but may mean leaving familiar ties. |
| Costs | Out-of-pocket expenses, potential overruns (10-15%), permits, design fees. | Often rolled into a mortgage; closing costs, moving expenses. |
| Disruption | Living through construction, potential temporary relocation, ongoing decisions. | Intense short-term disruption of packing and relocating, then a fresh start. |
| Equity/ROI | Varies by project; check Cost vs. Value Index for regional data. | Buying into existing value; potential for future appreciation in a new market. |
| Time & Effort | Can take longer than expected, requires active management and decision-making. | Finding a new home, selling current home, complex logistics. |
Frequently Asked Questions
- Is it generally cheaper to renovate or move?
Moving costs, like a new mortgage, can seem simpler to calculate. Renovations often involve significant out-of-pocket expenses and frequently run over budget due to unforeseen issues. - How can I estimate renovation costs accurately?
To get a realistic estimate, hire a designer or architect to plan your vision on paper, which allows contractors to provide a more accurate cost breakdown. Always budget an additional 10-15% for unexpected problems. - Will all renovations increase my home's resale value?
Not necessarily. While some improvements, like kitchen remodels, can significantly boost market value, others might primarily enhance your personal enjoyment without a strong financial return. Consult a Cost vs. Value Index or real estate experts for guidance. - What kind of renovations might require me to move out temporarily?
Large-scale structural changes, such as moving walls or adding an extension, are highly disruptive and may necessitate temporary living arrangements. Smaller projects like painting or floor refinishing are generally more manageable to live through. - Why is location so important in this decision?
If you're happy with your community, schools, and proximity to friends and amenities, renovating allows you to capitalize on those established benefits without the lifestyle disruption of relocating.
Ultimately, the choice between renovating and moving is deeply personal, intertwining financial realities with emotional attachments and lifestyle aspirations. By carefully evaluating market conditions, your location's importance, the true costs involved, and the potential impact on your daily life, you can make the most informed decision for your home and your happiness.
Renovate Or Move Homeowners Expert Advice
