Should You Renovate or Move?

Verani Realty

couple moving into new homeNo home is perfect, though you may be browsing and think there are a few out there that fit your needs and desires better than your current home. It can be hard to decide whether your current house should undergo some renovations to make it what you want, or if you should simply sell and buy one that is turn-key ready.

Here are five things to consider when weighing whether to renovate or to move:

  • Market conditions and home values. Chances are these are pretty good for sellers around the state of New Hampshire, but each community is different. There are some areas where the market is not as robust as others. Check with your local real estate agent to get details on both home prices and the movement of inventory in your area.

  • Analyze the issues you have with your current house. If they are easily fixable, like you want a deck, or you need a garage, or your kitchen is outdated, it might be worth the time and money it will take to complete the project. But if you find all your closets are too small, there is not enough backyard space, and you need another bathroom, then selling and moving may be the simpler solution.

  • Renovating can be less expensive than purchasing a new home. However, the task is not without its own set of challenges. In order to remodel or renovate you will need the capital to do it. Typically homeowners must take out a home equity loan or line of credit in order to complete their project, which in turn creates new debt. Look at the cost of the project versus the value it will add to your home. Adding smart home appliances, energy-efficient windows, and lighting are the most common renovations that almost always provide a good return.

  • Can you afford that new “ideal” home? Although you have equity in your current house, you should research and determine what that new home purchase would cost you in mortgage payments. Would buying this “better” home be affordable for you? Would it fit your budget? This is where your mortgage lender and your real estate agent come in to give you advice.

  • Are you prepared for living with renovation work? Renovations and remodels can take time and often leave you living in a construction zone for a while. If this is not something you are willing to deal with, a fresh start in a new home might be the right move.

Only you and your family can determine if it is time to renovate or time to move, but talking to your real estate agent can help you make an educated decision.

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