Should I renovate my home or move?
To renovate your current house or to move - this can be a very difficult decision to make. Regardless of the length of time you live in the house, at some point your house needs to be upgraded as family situations constantly change. It could be for a new family member, for your new occupation, or a new hobby.
Both options, renovating and moving, bring a lot of hassle. However, do you know why you should still consider renovating your home instead of moving?
A loss of capital
In most cases, selling one house and buying another costs you about 10% of the price of the new home. For example, if you buy a new home for $800,000, you will probably spend $80,000 in expenses such as commission, stamp duty, legal fees, loan fees, taxes, etc.
Additionally, you will also need to pay for moving expenses. Based on The American Moving and Storage Association, the average cost of an interstate household move is about $4,300 and the average cost of an intrastate move is about $2,300. And it even gets more expensive if you have a piano or a car to move. Plus, if you haven't already closed on your new home by the time yours sells, you might need to move twice and spend more money on renting a temporarily place.
Hidden issues in your new house
Purchasing a new home is great and exciting, however you may be inheriting the previous owner's problems in the house if there are hidden issues which sometimes don't show up on your new home's inspection report. If the home seller is not making repairs, you might need to spend more money fixing these issues. Even if they did fix any issues before selling it to you, they might have hired cheap or unlicensed contractors to save money.
Long periods of debt
If you move in to your new home before your existing home sells, you’ll need to face a bad financial situation- covering two mortgages for an undetermined period of time. Since you can't control the date of a sale, you can't assume you will carry two mortgages for only a brief period. If you can't afford two mortgages in the end, it will become a financial nightmare.
The housing market is still not that great
While the housing market is slowly improving, house values are still not yet back to 2006 levels. Compared with moving and selling your home, an extra room addition, a bathroom remodel, or a kitchen remodel, may be your most cost effective option. Therefore, you might want to consider holding onto your home until the market rebounds, since it may make more financial sense.
Home remodeling is a good investment
The right home renovation project which produces the greatest impact on the market value can actually be a solid investment. The money you put into a home renovation project is not going to be a 1:1 investment in your home's future price tag. According to a national survey, you are likely to recoup about 65% of the cost for a kitchen remodeling and more than 80% of the cost for a siding replacement. In Atlanta, a 20-by-30-foot basement remodeling project, which has an entertainment area with a bar, a sink, a refrigerator, and a small bathroom, can recoup 70% of the cost. Even more, for a midrange fiberglass insulation in the attic, the ROI is about 123% in the South Atlantic. If you want to learn more, we have 5 reasons why home remodeling is a good investment.
Plus, if you replace appliances and light fixtures in your house with energy efficient ones, you will also save a lot of money in the long run from those utility bills you receive every month.
Keep in mind that you're also investing in the relations and well-being of your family. This is not a traditional investment like a stock or mutual fund where you will see numbers growing in your bank account. After all, you can't enjoy your stock or mutual fund as much as your renovated house every day after a hard day's work.
A comfortable home matters
After having lived in so many uncomfortable houses, I have found that to have a house that you can enjoy, relax, and feel rested is very vital. You can't do anything well if you're not feeling well rested, let alone have good performance at work. Home design is a big part of it, for example, the right interior color choice of your house helps you feel relaxed and regulate your moods.
Also, your lifestyle is severely influenced by your house. For instance, if you have a fully equipped kitchen, you're more likely to prepare food at home, which is probably a healthier and cheaper option.
A dilemma faced by many
To move or to remodel or renovate is a hard decision, and the best option for every case is different. Are you frustrated with the lack of cooking space? Does your house need more functional storage and a pantry? Do you want to increase the comfort of your working space or have one more bathroom at home? Our professional team can help you frame the costs and benefits of the each decision, and walk you through the process from design to implementation. Please give us a ring at (770) 777 0100 or send us an email, we would love to hear from you.