When you bought your home, it was right for your needs. Years have passed, and now your needs have changed. Maybe your home is too small, or perhaps its interior is starting to look dated.
Do you put the home on the market, or make upgrades to stay for the long run? To answer that, you’ll have to consider a few factors: do you have an emotional attachment to your home? Will renovating add value to your home for a return on investment? And finally, can you afford a new home? You’ll have to answer these questions before making a decision. Many factors contribute to the decision of renovating or moving, ultimately it depends on how you feel about your home.
Is Your Budget Realistic?
Budget planning is a key factor when deciding to move or update your current home. If you’re looking into renovating, make a list of rooms that you plan to update. One of the main reasons renovations don’t work out is because the homeowners did not have a set plan in place.
- Make a list of priorities, including must-haves and nice-to-haves.
- Meet with contractors to get bids for repair. Ask and call for references.
- Contact lenders to discuss financing options.
Once you know how much you can expect to spend on your home remodel, you can compare the cost of remodeling to the cost of buying a new home. On average a remodel goes over by 15%, plan your budget accordingly.
Are You Attached to Your Home?
Think about your area, neighbors, and location. Some homeowners decide not to move when they realize that they could not replicate the life they have in their current home with any new home they could buy. Satisfaction with the current school district, commute and access to local amenities could be the deciding factor for homeowners who are content where they are. If you feel a strong connection to your home, then a renovation may be the answer for you. If you do not feel too attached, then moving and finding a fresh start might feel right.
How Long will a Renovation Take?
When making their decision, many people overlook the length of time that remodeling projects can take. A kitchen remodel can last anywhere from three to six months. Any plumbing, wiring, or ductwork could take longer. If you’re remodeling more than one room at a time, you could find yourself remodeling your home for a year or more.
Ask yourself if you have the patience that these projects will require, as renovations are very disruptive to everyday life. Remodeling-related noise and dust, combined with the inconvenience of not being able to use a room, are all reasons that some homeowners choose not to remodel.
If I Decide to Renovate, What Loan Options Are Available?
Refinancing your current mortgage to take cash out to fund the remodel may be an option if you have equity in your home. If you do not have enough equity to fund the remodel a construction loan may be an option. Another possibility is a stand-alone second mortgage. Make an appointment with a Mid America Mortgage loan officer to give you the best options.
Make Your Decision
So, should you renovate or move? It depends. Home renovations can outweigh the hassle of moving. But, moving can get you everything you may want in a new home – an already updated home and perhaps more space. Before making any decisions, think about your current home and how you would feel if you had to leave it. Do you see yourself there for five to ten more years? If not, it may be time to move.
Either way, if you find yourself looking for a home loan, contact Mid America Mortgage. We can help you get the loan you need to buy or renovate your new home.