Americans rank moving as the third most stressful life event. Homeowners dissatisfied with their present residence have two choices: remodel or relocate. When making this choice, there are several factors to consider besides your mental health.
76% of Americans stated they would choose to update their present house over making a down payment on a new one if given a chance. However, remodeling is not always the best course of action, either. There are clear advantages and disadvantages to remodeling and moving, including financial expense and time cost. Whether to purchase a new house or schedule a home improvement project depends on various economic and emotional considerations for you and your family.
Most Americans dislike moving, but it can be your best choice if you’re prepared for a significant shift. There are many reasons to contemplate selling your house, whether you’ve outgrown your existing residence, see a good sales opportunity, or believe the grass looks greener. But before you do, look at the benefits and drawbacks.
Benefits of Moving
If you have equity in your present house, selling it and buying a new one might be a terrific way to update your portfolio. It can be wise to sell your home if its current value exceeds your debt. You need to have adequate equity to cover closing fees, pay off your mortgage, pay for moving expenses, and make a new down payment. Moving allows you to choose a home that suits your requirements, within reason.
It will save you the hassle and cost of renovation, too. The average remodeling in the U.S. costs $46,503, and the typical gut and remodel costs $150,000. Downsizing might relieve financial pressure and enable you to pay off more unpaid debt. Over half of Americans had trouble making their mortgage payments last year and reduced their home sizes as a result.
Sometimes a change of scenery is the answer. A view shift could be a chance to broaden your mental and physical welfare. Before you begin your search, note the features you like and dislike about your present area so you can keep them in mind when looking at other homes.
Drawbacks of Moving
Selling your house is a costly undertaking. In addition to the price of the new home you’ll eventually buy, there are many selling and moving expenses to consider. A few charges you can incur after listing your property for sale include movers, home inspection fees, real estate commission, and home repairs. Do you have work or family responsibilities that must come first? Could you balance the strain of relocating with other impending events in your life right now? If not, it could be a good idea to postpone the relocation or consider remodeling.
Finding a new house that satisfies your requirements will take a lot of work. Finding a home in a desirable area that also suits your wants and budget may be quite challenging.
Benefits of Remodeling
The most straightforward approach to living in your ideal home is to take an existing home you love and modify. With remodeling, you can make your present house more personalized without the expense and stress of a significant transfer. One of the most remarkable ways to strategically increase the value of your property is via renovations, which will put more money in your pocket when you decide to sell. Be aware that renovations can entail upfront expenses, but if you have cash saved or are ready to borrow money, these fees are often justified.
Drawbacks of Remodeling
Renovations are always risky since not all home improvements are profitable. Do your homework on the renovations that offer the highest return on investment if you want to renovate merely to raise the value of your property in preparation for a future sale. Major kitchen or master suite renovations often provide significantly lower returns than garage door replacements or modest kitchen remodels, which may recover 80 to 100% of expenses.
Renovations seldom end up costing what the contractor first estimated. During a redesign, structural alterations, adherence to construction rules, and damage from pests and decay are some of the main problems homeowners face. Be cautious when picking a contractor; budget more money than the original price and search for someone whose references use terms like “excellent communicator” and “timely deliverer.”