The time has come to change up a few things in your home. Thankfully there are a few ways to do this. There is an option of staying in the same home and renovating, or you could go the other route, sell your old home and look for something that better suits your needs. Now you have found yourself wondering: buying new vs. renovating – which is better? We will look into the pros and cons of both to help you make the best decision.
Renovating your old home
Most people feel weary of significant changes in their life. Sure, there are probably things about your home that you would like to change, but that can be done through renovation. We will give the rundown of both the pros and cons of renovating but be mindful that you will want to keep the costs low if you choose this option.
Pros of renovating your home:
- You don’t have to deal with a new neighborhood. Living in the same location pretty much your whole life can be very comforting. You already know where all the shops and services are, and you get to avoid the hassle of learning everything all over again.
- Just change the things you don’t like. You bought your old home for a reason. There must be plenty of things you love about living there. By renovating, you get to add your personal touch and redo the things you don’t like, and keep the rest. Tweak a few things here and there on the house you already love, and you have created the perfect home that is welcoming and cozy.
- Renovating can be cheaper. If you aren’t going to be changing too much about your old home, the process of renovating doesn’t have to be too costly. For example, if you plan to keep the basic floor plan the same and only want to redo a few areas of the house – you don’t necessarily need to spend a lot of money.
- Renovate to increase the value of your home. Even if you have chosen to renovate instead of buying a new house, chances are that you will eventually end up selling at some point further down the line. Make sure you have a good idea of what the current trends are. There are also some necessary repairs you can do to your home. Consult with a real estate agent to make sure the renovations you are doing actually go towards increasing the value of your current home.
Cons of renovating your old home:
- How will you finance the renovations? Financing a new home by selling your old one is a fairly obvious solution. What are your funding options for renovations on your existing home? If you don’t have some money saved up, you might need to inquire about a home equity loan.
- Planning everything is hard. Figuring out the timeline for the work, as well as where all of your possessions will go while the renovations are taking place, can be a logistical nightmare.
- Renovating can be a money sink. It is easy to go over cost, especially if you haven’t done any extensive home repairs before. If you lack experience and you don’t know exactly what to expect, it is probably best if you leave room for additional expenses. Plan for a large contingency budget to cover unforeseen complications.
- Some things can’t be changed by renovations. No amount of home renovations will change how close you are to your office or school. When deciding if you should be buying new or renovating you need to know what your priorities are.
Buying a new home
Buying a new home can be an exciting experience. Renovating your old home can fix some of the issues you might have, but it’s still that same old house. Of course, there are pros and cons here as well, so it’s up to you to decide if buying new or renovating is better for you.
Pros of buying a new home
- You get to avoid the hassle of renovating. You don’t need to go through the trouble of obtaining all of the permits and checking the paperwork. Let’s not even get into the topic of all the messy work that renovation requires. No one wants to live on a construction site. All of this is someone else’s problem. You get to walk into a home that is fully set up.
- What you see is what you get. Have you outgrown your old home and need some extra space? The solution is relatively easy; just find one that has a few additional rooms. Or perhaps you are looking for a house that has a specific style. You can tell your realtor about it, and they will help you select the appropriate listings. Then you get to choose from houses that have the specific features that you are interested in.
- Buying new can be cheaper than renovating. Depending on the number of changes you are interested in making, it could be easier to buy a new house that better matches your vision of a dream home. Try to calculate the cost of your wanted renovations. Weigh that against the cost of buying a new home to see what makes more sense.
- You get a fresh start. You probably have a good idea of what your perfect home layout looks like, and you get to set up your new home exactly how you want. However, you need to avoid some common mistakes since the layout is something that you should choose carefully.
Cons of buying a new home
- You need to sell your old home first. Going through the process of selling your house is no easy feat. There are things you can do to prepare your home for sale and make your property more appealing to buyers. You won’t know exactly how much money you will get until you are able to negotiate a final price for the sale.
- Potential unknown problems with your new home. There is no such thing as a perfect house. A home inspection will reveal at least some issues, even with newly build homes. Sometimes it’s better sticking to the devil you know and just fixing up your old property.
As you can see, the question of which is better: buying new or renovating your old home is not an easy one to answer. We have listed the pros and cons of both, and now it is up to you to figure out the scope of renovations you would need to do in your old home versus what you would be gaining by moving to a new house.