Remodeling vs Moving
Remodeling vs Moving
The Homeowner’s Dilemma:
Should I Add On Or Move On?
Perhaps it was that moment when you realized that avocado green and harvest gold are no longer the "in" colors for today's trendy kitchens. Or maybe you had an epiphany one day as you stood in line to use your own bathroom. Whatever the impetus, the thought has crossed your mind: Maybe it's time to remodel.
If you decide to follow through on that thought, you'll join millions of others who decide to remodel their homes each year. The reasons for remodeling are as varied as the projects we undertake. Some of these include:
- Adding more space.
- Upgrading cabinets, counters, appliances, and fixtures.
- Creating a floor plan that's customized for your lifestyle.
- Improving energy efficiency with new windows, doors, insulation, and climate control systems.
- Increasing the resale value of your home.
Before you head too far down the remodeling path, it's a good idea to think through your wants and needs:
- Decide what changes you want to make.
- Ask yourself and other family members what you like and dislike about the house, then create a prioritized list.
- Look at magazines and collect pictures of what you like.
- Think about traffic patterns, furniture placement, colors, lighting, and how you want to use the remodeled space now and in the future.
If you want to change your home, your other option besides remodeling is to find a new one. But more and more American families are deciding to stay put and improve their existing home. Here are some of the reasons:
- Remodeling allows you to customize your home to meet your needs and desires. The only similar, but much more costly alternative, is to have a brand new custom home designed and built.
- Remodeling means that you don't have to give up a familiar neighborhood and schools.
- Remodeling is a more efficient use of your financial resources. According to the American Homeowner Foundation, selling your home and moving typically costs about 8-10 percent of the value of your current home. And much of this goes into moving expenses, closing costs, and broker commissions - items that have no direct impact on your home's quality.
- Remodeling can be stressful, but few experiences are more stressful than moving.
While there are many reasons that people choose to remodel, the bottom line is that remodeling makes your home a more enjoyable place to live. The "quality of life" value of this pleasure needs to be factored into your decision, along with any resale value you hope to gain.
But there is no doubt that, as far as improving the sale of your home, all remodeling projects are not created equal. The general rule of thumb is that any remodeling project that brings your home up to the level of your neighbors' is a worthy investment. But it does NOT pay to be the most expensive house on the block - real estate experts recommend that a remodeling investment should not raise the value of your house to more than 10 to 15 percent above the median sales price in your neighborhood.
REMEMBER: The principles of progression and regression are always in effect. If you have a modest sized house that is located in a neighborhood of larger homes, the value of your home is going to be influenced and lifted by the value of your neighbors’ homes (Progression). And conversely, if you currently have (or are planning to expand your home to become) the largest home in a neighborhood of smaller homes, the value of your home is also going to be influenced and held back by the value of the smaller homes in your neighborhood (Regression).
Remember that potential buyers will be comparing your home to new construction. Therefore, you'll want to look at the design trends and amenities being built into today's homes. Great rooms (open kitchen/family room arrangements), master bed and bath suites, and higher ceilings are a few of the features sought by today's home buyers.
Each year, Remodeling Magazine conducts its "Cost vs. Value" Report to assess which remodeling projects create the greatest return on investment. Not surprisingly, kitchens and baths regularly come out on top. These are two of the most used rooms in the home, and they receive the most scrutiny from potential buyers.
Related Home Remodeling Articles
- Home Improvements
Can they be considered good investments?
- Remodeling vs Moving
Should I add-on or move-on? (make over or start over?)
- Remodeling Your Home - Where To Begin
- Home Remodeling Survival Guide
Coping with your home as a construction site.
- Choosing The Right Contractor
Your guide to a problem-free experience
- The EPA Lead-Based Paint Renovation, Repair & Painting (RRP) Rule
Renovating pre-1978 homes will be less hazardous ... but probably a little bit more expensive.
- COST vs VALUE Report - Remodeling Magazine
An analysis of the relationship between remodeling costs and resale value for 33 popular remodeling projects
- How To Avoid A Mechanic’s Lien
Making sure EVERYONE gets paid.
- Certificates Of Occupancy
Making sure your home alteration is properly documented
- Universal Design & Aging In Place
Adapting Your Home For Functionality & Accessiblity For All.
- Frequently Asked Questions (FAQs) About The Home Remodeling Process
Answers to forty common home improvement questions
- Trading Up In A Down Market - A Winning Strategy
In a down market, buying a larger house might prove more cost effective than remodeling.