Remodel or Move: Which is Best?

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Move vs. Remodel: Everything You Need to Know

Are you trying to decide between remodeling or moving?

There are plenty of reasons to remodel a home – from dated designs to changes in lifestyle.

However, if you have considered remodeling, you may also have considered buying another home.

Depending on the current market conditions, selling your current residence and purchasing another could look better and better.

All of this makes deciding whether to remodel or move a bit of a challenge, but it is possible to make a final decision you are comfortable with.

You need to get clear on what you want and need.

Deciding whether to remodel your house or move is a process that many homeowners go through. Whether to move or improve can be a tough decision.

Take a look at some of the considerations you should be thinking about when making what could be a life-changing plan.

Five Essential Considerations When Deciding to Remodel or Move

Everyone has different reasons for either renovating or moving. However, some of the most common are the following:

The cost of remodeling vs. moving
Your current mortgage interest rate vs. what it will be if you sell and move.
Property tax considerations
Location considerations
Adequate space to grow
Lifestyle considerations

What is Missing From Your Home

Over the thirty-seven years I have been selling real estate, the question “should I remodel my house or move” has been asked several times! The first thing I recommend is to take a long hard look at your current home and list where it falls short.

Where are the areas where your house misses the mark? Your kitchen may be too small and dated, or your bathroom may miss some key components you have always wanted.

The carpet could be worn and stained, or the yard may be so uninviting you never set foot on it.

Many of these issues can be resolved with a home remodel, and often the cost will be less than pursuing a new construction home.

Granted, if everything in your home is wrong, it could be prohibitively expensive to gut the entire thing and start from scratch. If the cabinets in your kitchen are the biggest complaint, a remodel is much more reasonable.

Sometimes The Floor Plan Can’t Be Changed

Floor plan problems may or may not be fixable without spending too much money. You will likely find this to be one of the most significant factors in your decision.

The size of your rooms can usually be altered to fit your current lifestyle better. The way the space in your home is used may not be the most efficient, and this can begin to make you feel a bit claustrophobic.

Why is there a wall between your kitchen and your dining room? Why is the master bathroom so small and the master bedroom uselessly large? A remodel can change these dimensions and make you feel like you are living in an entirely new house.

Remodel or Move: Cost vs. Practicality

When deciding whether it makes more sense to move or add an addition to your home, the cost vs. the practicality of what you want to do needs to be considered.

The thought process on cost vs. practicality should lead you to think about a few things, including the following:

Will I Be Priced Out of The Neighborhood?

Does the addition and improvements I want to make price me out of the neighborhood?

In other words, will I get my money back by investing it into the property when it comes time to sell?

Being the most expensive property in the neighborhood typically doesn’t work out from a return on investment standpoint.

Over-improving a property is something real estate agents encounter pretty frequently.

Will Renovating Solve All My Problems?

Does the addition solve all of my problems? For example, you might need a 4th bedroom and have the space to accommodate one.

The problem, however, could be that you only have 1.5 baths; by adding a 4th bedroom, you should also have a 2nd full bath.

What if you don’t have the space for a 2nd full bath without spending additional money? A four-bedroom, 1.5-bath home could be a detriment when selling because of that lack of a 2nd full bath.

You have additional money invested into the home that may not get the proper return. A few years ago, I met with a homeowner in Franklin, Massachusetts, dealing with this exact situation.

She ended up staying in the home and putting on the addition she wanted. Unfortunately, I think the money she re-coups with is less than stellar because there are still only 1.5 baths in a home that should have 2.5.

Will You Accomplish Some Goals But Not Others By Not Moving?

Maybe you can accomplish one of your goals but not another. The backyard may be big enough to handle the significant family room addition, but your sideline setbacks don’t allow for the garage you want.

Sometimes, making the home too large and not having a garage could be a monetary mistake.

Does Your Remodeling Budget Only Allow For Some Projects?

Are you over-improving one area and leaving another area untouched?

You would be surprised how often I see people spending thousands on a kitchen remodel, and the rest of their home looks like it belongs in the 70s.

If you are going to make a significant investment in your kitchen leaving the shag carpet, green toilets, and peeling wallpaper is a mistake. Do it all, or don’t do it at all.

Consider Functional Obsolescence

The term functional obsolescence is lost on many people until it is explained by a real estate professional. Function obsolescence is a design flaw that impacts the property’s market value.

Here are a couple of examples of functional obsolescence:

All the bedrooms in the home are on the second floor, and the only bath is on the first floor.
You must walk through a formal dining room to get to the master bedroom.
The need to walk through one bedroom to get to another.
You have to walk through a formal room to get to a garage.
Too much square footage is allocated to one area of the home and not the rest – for example, all of the bedrooms are tiny, but the rest of the house is immense.

These are all excellent examples of functional obsolescence in a home. If you have one of these things in your current home, will the remodeling plan remedy the problem?

If not, you could be digging yourself into a deeper hole. The more money you sink into a home with a functional obsolescence problem, the more you lose!

Is Your Location an Issue?

While remodeling can significantly fix the look and feel of your home, there are some problems it cannot fix.

Where your home is located significantly affects what it is like to live there.

While its current location may have been fine when you first bought it, either because the price was right or your life circumstances were different, now that location may cause a variety of frustrations.

Knowing how to pick a neighborhood you will enjoy is one thing I am constantly bringing up to first-time buyers.

It can go in one ear and out the other due to an emotional attachment to a particular home.

This is a mistake that many people don’t realize until years later when life’s circumstances change.

You could now be located in an area with no easy access to the things you now enjoy the most.

Access to restaurants, shopping, and social gatherings is essential to many people, and your neighborhood may have never developed the way you hoped it would.

On the flip side, your area could have developed in a way you don’t like.

A new shopping center, for example, could create traffic congestion that you don’t want to put up with, even for convenience.

Is Your Lifestyle The Same?

Quite often, when you bought your home, life was different. For example, you may have only considered a single-family home in a neighborhood.

Many things can trigger changes in our lives. Maybe you like your home still but are starting to gravitate towards living in a townhome or condo due to having less maintenance.

Your Life Circumstances Could Have Changed

Maybe you didn’t have kids when you bought the home, and now you do. Over the years, one of the biggest reasons I will see people move is their kid’s education.

First-time buyers without kids will opt for a bigger, less expensive home in an area where the schools may not be entirely up to par as other similar locations.

This can change in an instant and make it necessary to move. How schools can affect home values is not something every buyer will think about when purchasing, especially when they are young and it’s not a priority.

Proximity to friends and family is also another concern. As homeowners get older, being near their loved ones often becomes more important. The big old house you raised a family in may feel empty and very far away from the ones you care about.

The House and Surroundings May Be Problematic

Sometimes the home site itself is the problem. If you have groundwater issues, foundation problems, or other issues to lay at the feet of mother nature, fixing them can be extremely expensive, if not impossible.

You cannot remodel your way out of the wrong view or bad neighbors.

Comparing Your Current Mortgage Interest Rate vs. If You Move

Do you have a desirable mortgage interest rate? Maybe you refinanced when mortgage rates were low, and now they have headed much higher.

If you move to another home, you’ll need to get a new mortgage that will be much more expensive. On the other hand, if mortgage rates have dropped, you may get more bang for your buck by moving to another home.

Interest rates can play a central role in deciding between remodeling or moving.

What Are The Property Taxes in a Remodel vs. Moving?

One of the least desirable aspects of homeownership is paying property taxes. When considering a remodel or move, your property taxes in your existing home vs. where you’ll move should be considered.

Will the tax assessment be higher or lower where you move, and how much? You’ll be at the mercy of the assessed value at the time of your purchase.

Comparing these figures will be crucial to see how they play into your decision to stay or move.

Consider Your Time and Money in Renovating vs. Moving

Knowing how long you plan to stay in your current home is essential when making remodeling decisions. If you see yourself hitting the road in an RV in a few years or moving closer to the kids or a warmer locale, the time and investment of some remodeling jobs may not be worth it.

Before jumping in, you should also understand what your remodeling tasks will cost you. An experienced and reputable company to give you an estimate is a must, even if it requires paying for the professional’s time.

You want to know what you will be spending. The money and time involved in the remodel may lead you to consider shopping for another home. Better to know now in the planning stages than to be surprised later on.

Shop Around With A Realtor

Contact a reputable real estate agent to look at some of your buying options. You might as well know what is out there before you commit to major renovations, and a good agent will know precisely how to find what you are looking for.

They should also have some helpful advice on renovating versus buying in the market as it is right now. Things are constantly changing, and your agent will be the best equipped to explain the present market.

Is it a buyer’s market or a seller’s market? The type of real estate market could play a role in your decisions.

Present Value vs. Future Value With a Remodel

A top-notch agent should also be able to tell you the present value of your home vs. what it will be worth if you go through with the renovation. This should be a significant consideration when deciding whether to move or remodel.

All other things being equal, it could make sense to sell the home and move on. On the flip side, it could make sense from a cost perspective to stay right where you are.

The agent who does this evaluation must not only be skilled but should be someone you trust completely. If you move, the agent stands to make a lot of money. If you stay put, they won’t make a dime.

Given this circumstance, you need to have someone you know who will be completely impartial. This can undoubtedly be hard as there is a lot of money involved.

You’ll want a highly successful Realtor who isn’t worried about their next paycheck. If you stay put, there is no Realtor’s commission earned.

What You Can Sell For vs. What You Can Spend

If you don’t think it will be possible to find an unbiased Realtor, it may make sense to hire a real estate appraiser to look over your current home to give you an idea of what it is worth.

The appraiser can also look at your blueprints and specifications of the remodel and give you an estimate of value once the project is complete.

If you are kicking the tires and haven’t gotten serious yet, check out the remodel or move website, which offers some handy calculators and advice on this subject.

It will also be essential to speak with your lender to determine what you qualify to spend should you decide to purchase instead of remodel.

With these two numbers, you can get a pretty good idea of what could make more sense for you, at least from a financial standpoint. Make sure you look over each with a keen eye.

Will buying a different home give you everything you want?

Will staying put with a remodel be a fiscally responsible decision? Only you can answer these questions.

Do What Will Make You Happy

Each homeowner’s wants and needs are different. Going through all these steps should give you a better idea of why you are looking for a change and what changes are available to you.

Deciding whether renovations or buying is best for you will ultimately come down to what is most essential.

Putting together a checklist can be beneficial for many people. Put the pros and cons of both the remodel and moving on paper. Seeing things in black and white can often make your decision easier.

Additional Helpful Articles on Remodeling and Moving

Should I move or improve my home – Houselogic provides helpful guidance for making a tough decision.

Use these additional resources to help you decide whether to sell your home or remodel it. Staying put or remodeling is not a decision that should be made quickly, as it is a significant life decision.

About the author: The above Real Estate information on remodel or move: which is best, was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for the last 37+ Years.

Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!

I service Real Estate sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton and Uxbridge MA.