There are many reasons why we start to outgrow our current homes. Some people start families without enough bedrooms or living space. Some homeowners buy their homes even though there aren’t dedicated spaces for certain utilities, such as a laundry room or pantry. Other homeowners find their home layout was never to their liking. Whatever the reason, there are two solutions: remodel or move.
Choosing to remodel or move are two big decisions, not only because they require a lot of time and effort but also because they require the funds to do so. There are many things to consider when choosing to remodel or move. You need to consider if you’re ready for a remodel or move and what you have the budget for.
What Does it Cost to Remodel or Move?
The cost of remodeling or moving is a huge factor any homeowner contemplates before deciding. In some cases, the price alone is the only deciding factor homeowners need to choose.
The Cost to Move
Selling your current home and moving into a new one is a long process, but it can also be costly. You need to consider the cost of selling your home, the cost of buying a new home, the cost of moving, and even the cost of a mortgage.
Selling your home comes with its own small list of expenses. You could accrue repair costs and real estate agent commission fees when you sell your home. These fees typically are 5% of the sale price. There are also repair fees you might have to worry about. Minor repairs could be a few hundred dollars, but major repairs can reach the thousands.
Once homeowners have found a new home, they will have to worry about closing costs, which could be 3%-6% of their mortgage. There is also the cost of furnishing the house and buying new appliances, which on average costs $8,000. Moving costs are also a point of contention. If you have decided to move to another state, moving companies tend to charge $2,000-$5,000. A local move could only cost a couple of hundred dollars, depending on how the moving company calculates its prices.
Lastly, homeowners must consider their mortgages. A more expensive house means a larger down payment and higher interest rates. Furthermore, a move could mean higher property taxes.
The Cost to Remodel
HomeAdvisor approximates that the average cost of renovating a home is $46,788. The average range is $18,372-$77,016. This number is dependent on several factors, including what homeowners get remodeled, where they live, and the costs of materials, among other things. A simple kitchen remodel could mean replacing floors, countertops, cabinets, and backsplashes, but an extensive kitchen remodel could mean relocating appliances, knocking down walls to create a larger kitchen, and replacing floors, countertops, and cabinets with custom finishes. On top of the costs of remodeling your home, consider higher property taxes and utility bills.
When you remodel your home, get estimates from multiple contracting companies. Explore your options not only to see which company does the best work but also which one offers the best price for your budget. Check out our blog post about planning a home remodeling project here.
Are You Prepared to Remodel or Move?
Finances aside, the biggest question you’ll have to ask yourself is if you’re ready to remodel or move? This can become an emotional question compared to the logistical question of whether you have the funds to remodel or move.
Moving: A Fresh Start
A new environment is a huge plus for homeowners who decide to move than remodel. The frustrations of your original home, such as limited space or aggravating layouts, are no longer an issue when you choose to move to a new home. You have the freedom to decorate in new ways and enjoy a space that is more to your aesthetic liking. Furthermore, perhaps the new neighborhood you moved to is better than your last.
However, you will need to remember the costs of relocating and leaving behind the memories of your old home. For some homeowners, this is a deal-breaker. If you have lived in your home for a long time, the thought of leaving your current home and its many memories behind may mean a remodeling is the better option for you.
If you love your home but have a problem with space or its architecture, remodeling your home is the better option. When you remodel your home, you get to hang onto the memories while transforming the space to better suit your needs. If you have a growing family, remodeling your living room could be incredibly beneficial. You can customize your home to your needs instead of finding another house that may not fit your needs in a few years.
Furthermore, you may be thinking towards the future when you remodel. One day you might need to move, and by remodeling your home now, you guarantee your home’s value for the future. Remodeling is one of the best ways to improve your home value, according to The Zebra, an independent insurance comparison site.
The one major drawback of home remodeling projects is that you will need to live in a construction zone for a while. You may not be able to use certain home facilities for a bit, such as your kitchen or a bathroom, which could mean you may not be able to live in your home for a while. Depending on your comfortability and the extent of your home remodeling project will dictate if you can live in your home or need to relocate for a time.
Your Hometown Team
At BetterBuilt Builders, we have been operating for 15+ years in the Greater San Jose, CA area. Our years of experience have prepared us for any home remodeling project. Contact us at (408) 752-1069 or get a free estimate today. Choose BetterBuilt Builders.