If you need a change for your home, you can choose to renovate or relocate. This can be a tough decision to make, and the best choice relies on a variety of factors. This article will guide you on how to think about this decision.
Consider Location When Deciding to Renovate or Relocate
When it comes to real estate, one of the most important aspects is the location. If you don’t love your neighborhood, you might be better off relocating. On the other hand, if you’re in an area that fits your needs but your home needs some improvement, renovating may be best. If homes in your area are gaining in value rapidly, you might want to hold on to your property for a few years. Your location is a key factor when deciding whether to renovate or relocate.
Costs of Moving
There are many expenses associated with moving. You’ll also have to pay closing costs on your new home. You may choose to hire professional movers or at least rent a truck. Depending upon the distance of your move, you could wind up paying thousands just to move, not even counting your closing costs. If you decide to move and then have trouble selling your home, you might have to pay two mortgages for a period of time. In this case, you may not be able to afford your new home.
Costs of Renovation
The costs of renovating a home can easily exceed the costs of moving, depending on the size and scope of the project. However, you can also make impactful home improvements while spending very little money. You might be able to perform much of the work on your own, but you’ll still have to buy the materials that will go into the renovation. If you add an addition to the home, it could cost hundreds of thousands of dollars. Take bids from multiple contractors to minimize your costs. However, you’ll want to get references for each contractor who bids on your job. Sometimes the lowest-priced contractor does not deliver the highest-quality work.
After comparing the relative costs associated with renovating your home and moving, you’ll have a better idea of whether it makes more sense to renovate or relocate. The neighborhood you currently live in will be an important consideration. If you want to downsize, moving is probably the more practical choice. On the other hand, if you’re relatively happy with your location and a few changes will turn your current home into the home of your dreams, staying put can make a great deal of sense.
Deciding to renovate or relocate is a big decision. Considering cost and location will help you make the best choice for your situation.