Are those creaking floors getting overly annoying? Embarrassed of your dated kitchen? Tired of looking at those cracked bathroom tiles? Sounds like you are looking for a change! Now the question stands – how much of a change are you really looking for?
Let’s help you determine what is the best option for you and your family!
Here are some things to consider before you decide:
Why Am I Considering A Move or Remodel?
There is a reason you are asking yourself “should I stay, or should I go?” and maybe you already pinpointed exactly why a change is needed. However, if you are still unsure let’s consider some factors that can help you understand which decision is right for you:
Space – is your home sufficient for your family? Perhaps you’re a growing family with a need for a spare bedroom or maybe you work from home and lack a dedicated work area.
Convenience – Whether it is your commute to work, your favorite grocery store or your children’s school district – there are so many things to consider that may make it easier for you to choose remodeling vs moving or vice versa.
Current Issues – Is the entire home outdated or just certain areas? Establishing a list of issues in your current home is the first step. Prioritize the items on your list by importance and need. This will help you see how much work you are up against and if you want to take it on.
Overall Costs
Both renovating and moving will incur costs, but what makes sense to you might not make sense to others, so you have to consider your specific cost factors:
What is the scale of your renovation? Is it just a couple of rooms or a whole home renovation? In the Chicago land area, the average whole-home renovation cost ranges between $70 to $150 per square foot. A complete gut renovation typically costs $100 to $200 per square foot.
If you move, will the new home be move-in ready? You have to consider that even moving to a new home may require some renovation. In a recent survey, 60% of home shoppers expect to renovate their newly purchased homes.
What is your current financial standing? You will need to consider where you are at with your current mortgage and how much you have in your savings. Remodeling typically involves immediate, out-of-pocket expenses, whereas moving may not cost as much upfront but may cost you a lot more down the road.
The Market
“Is it a good time to sell?” and “Is a good time to buy?” should be your top two questions. Perhaps it is less costly for you to move as opposed to renovating, but will you be getting the most out of your investment? To answer these questions, you will need to dive deep into the market and research.
What are the current mortgage interest rates? Contact your local bank or financial institution to check on current market rates and consider the overall standing of the economy.
Is my current home quickly sellable in its current state? Talk to your real estate agent and see what your current home could potentially sell for and if they would recommend any changes in order to sell faster. Check comparable properties in your area, their prices, and their condition.
What can you purchase at this time? Check local listings or talk to a local real estate agent to see what homes are on the market and what average home prices are.
Emotional Attachment
Are you ready to say goodbye to the home that’s been the location for so many memories? Maybe this was the first home you’ve purchased, the place where your child took its first steps, or perhaps it’s your childhood home that you inherited. Forget the math and logistics for a moment, take a trip down memory lane and consider whether you are emotionally ready to leave the home that’s housed much more than just your belongings.
Pros & Cons
The easiest way to compare moving to remodeling is to make a list of the Pros and Cons of each option and determine whether the Pros outweigh the Cons. Here are some Pros and Cons we found:
Final Thoughts
Your home is likely one of your largest assets. So, it’s very important that it meets your and your family’s lifestyle needs. If it does not, carefully weigh the pros and cons and determine whether you want to invest in renovations or start fresh by moving. Remember – there is no right or wrong answer here. It all depends on what is most important to you and what makes sense for you financially, emotionally, and all otherwise.
