What works with your budget?
Whether you remodel or relocate, there are plenty of expenses to consider. Depending on the scope of the renovation, you may be dealing with the cost of the contractor, the architect, building materials or the possible rise in your homeowner taxes. Upgrade to a larger home, and you’ll pay more for your mortgage and taxes. That’s in addition to closing costs and moving costs, real estate commissions and finance charges.
Do you love the neighborhood?
Your neighborhood is almost as important as the house you live in, so consider all it has to offer. If it’s in a desirable location, has the amenities you need, has good schools for the kids and friendly neighbors, you should probably think twice before leaving the area.
Can you put up with the renovation process?
Having a bunch of workers disrupt your home for weeks or months at a time can be quite unsettling. Dust, fumes, noise, piles of materials and lack of privacy are just some of the things that can come with a renovation. You have to be willing to stick it out and put up with all the inconveniences until the project is completed. Or, stay somewhere else if you can afford it.
Which makes financial sense?
If you own one of the most expensive homes on the block, putting money into a renovation probably wouldn’t pay off in the long run. People are not usually willing to pay much more than what other homes in the neighborhood are going for. However, if it’s an average-priced home for the area, it may pay to remodel your current property. Renovations such as remodeling a bathroom or the kitchen usually return about 80 cents on the dollar, according to Remodeling Online’s latest cost versus value report.
How will moving affect your family?
Moving to a new home can be exciting, but it can also have drawbacks. Changing schools can be tough on your kids as they’ll have to make a whole new set of friends. Your social life can suffer too, if you’re leaving friends and family behind. You have to decide if making a big change is best for your family.
Are you listening to your heart?
Your home and the surrounding neighborhood play a vital role in your lifestyle. Think about your current home and its location. If your home was upgraded or remodeled, would you and your family be happy to stay? If renovating still wouldn’t address your family’s needs and you can afford a bigger place, it may be time to make a move.