You've finally come to that point. That point in time when you look around the house and, instead of seeing joy you see things needing updates. The kitchen has a countertop you absolutely hate, the bathroom looks like it's from an entirely different time period, and even the bedrooms don't have the kind of flair you'd really like to have. What should you do? Should you wave your hands in disgust and call your real estate agent to start looking for new places? Or, should you begin renovating?
On the surface it may seem like a simple question, but as you dig deeper into it you'll discover it isn't. There are a number of variables to consider, both for the buying of a new home and for a remodel. And you may even be asking yourself, "should I remodel before selling?" That adds an entirely new layer to the question. But before you can even start to address that, you first need to determine whether it is better to remodel or buy a new home?
Is It Cheaper To Renovate Or Move?
Houses in Alachua County and around the country are going for near-record prices right now. But for argument’s sake, let's say you're able to sell your property and then find a new one. The higher selling prices will offset, which means you're just trading one for another, right?
Not at all. If you buy a house that is fully updated in the way you want, the house will probably cost more than what your current property is going for. On top of that, you need to consider all the moving costs. There's the paying movers to box everything up, there's the rental truck costs, all the boxes and material you need to buy, not to mention the time off work you might need to take. There are all kinds of hidden costs associated with moving. According to Zillow, you're probably looking at spending $5,000 at least just for the moving help and the truck. You'll quickly pay five times that amount for a larger move and with all the moving supplies. That's a large price tag to be inconvenienced to move across town.
On the flip side, when looking at the remodeling side of the buy new home or remodel question, you won't be tossing this $5,000-$25,000 of moving costs away. You can take this cash and put it right back into your property. You might be able to pay for a new roof, or new windows, with that.
The cost of a full Gainesville home remodel or addition will depend on what all you're looking to do. Maybe you only want surface cosmetic changes, like fixtures and counters and floors. That will be less expensive than ripping out everything that's there and installing something new.
What Renovation Adds The Most Value
The beauty with remodeling vs buying new Alachua County home properties is you can space out the upgrades. Maybe this year you upgrade the kitchen and next year you upgrade the master bathroom. It helps spread out the expenses. Plus, you can decide what to renovate based on what adds the most value. New roofs tend to add significant value, as does a new bathroom. This will depend on the exact neighborhood and the renovations you make, but when you renovate your home you will be pumping up the property value.
Is It Worth It To Renovate A Home?
First, you need to answer a few questions. Start out with how long you picture yourself living there. If your plans are to stay put then yes, it is worth it to renovate a home. This is because it gives you time to not only enjoy the renovations, but to recoup what you put into it. However, if you're considering a remodel or move and you don't think you'll still be living there in a few years, it's best to keep upgrades to a minimum, as you won't experience the maximum return on investment.
Second, consider your neighborhood. What do the other homes in your neighborhood look like? There is such a thing as over renovating your property based on the neighborhood. If your neighbors have smaller, less impressive homes, potential buyers will not want to spend the kind of money to purchase your house and not have neighbors that follow suit. In this instance, when looking at whether you should stay or move, it's better to move and find a neighborhood that has the features you like.
It's Up To You
There are plenty of benefits in updating your current home when it comes to a remodel vs. new construction. However, the decision ultimately comes down to you. If you love your property you should renovate it. If you've grown to detest the property it might be time to move on. You'll need to make the right decision for yourself, your family, and your finances. Consider the amount of money it might cost to renovate and the return on investment you'll receive over time. As long as you intend on remaining in your home for more than a few years it may be an excellent opportunity to remodel. To help you with your remodeling questions and to get the project started, our team is just a phone call away.