Whether you have outgrown your current space or want a more updated, modern home, it may be time for a big change. If you’re considering purchasing a new construction home or remodeling your own, you need to weigh the pros and cons.
It is wise to start by crunching the numbers to determine whether a remodel or a new construction would be more cost effective. This will include determining how each decision could affect your mortgage and property taxes, and how each option aligns with your long-term plans. For example, if you plan to have a large family, purchasing a new construction home or building from scratch may make more sense than remodeling your three-bedroom house. In addition, the quality of your existing home is a factor. If you live in an older home with a charm you love, think about how much the materials will cost to match that charm and whether it will be more cost effective to remodel or build new.
Location is also an important question to consider. If you can’t quite let go of your current address, a remodel may be right for you. Access to schools, work, and your favorite restaurants and weekend activities are important factors. In addition, pay attention to local laws regarding remodeling. Some require you to just leave the exterior structure intact, while others will have more strict definitions, limiting your options in the interior of your home. Real estate agents also advise that your home value should be no more than 10 to 15 percent higher than other homes in your area. If a remodel will cause your home value to exceed that, resale will be difficult.
Remodeling allows you to create a new look within the same space. You don’t have to deal with the hassle of relocating, and you can fully customize the space to your needs and tastes. It may also be more affordable than buying a new home or building a house, because remodels occur on a room-by-room basis. Some rooms may need a simple refresh while others require more extensive renovations.
On the other hand, remodeling can be an inconvenience; consider access to rooms you use often such as kitchens and bathrooms. Workers will be there daily to work, and you will not be able to use your home the way you’re accustomed to for the duration of the remodel. Remodeling can be noisy and quite messy, adding stress to your daily routine. Some people opt to stay in a hotel during a remodel, which increases both cost and inconvenience.
Remodels also require your contractor to remove walls before replacing them, while building a new construction home allows you to build from the ground up, reimagining your home in its entirety rather than as a refresh of existing space.
We suggest remodeling if:
- You love your neighborhood
- Property values are increasing in your area
- Your home value is not at the top of similar homes in your area
- Your existing structure is suitable for our long-term plans
We suggest buying a new construction home if:
- There is an ideal lot available in your desired neighborhood
- Remodeling your home will increase its value beyond that of comparable homes
- Your desired changes cannot be made to your existing home
Whatever you decide, be sure to work with the experts, from realtors to architectural and interior designers. Take your time to make the decision that is right for you.