Home ownership is truly part of the American Dream, and millions of people achieve this each year.
While homeownership is a great thing, it also provides plenty of challenges and issues that can from changes in life. This can include having more kids, increased income, or even having your kids move out as they grow up, resulting in a spacious home that now may be a little too spacious and difficult to maintain on your own.
Changes to the home market may affect you as well. Currently, we are experiencing what many experts refer to as a “buyer’s market,” meaning that many homes are cheaper to buy, and that includes your own if you are looking to sell.
The issue of deciding on relocating or remodeling your home is a daunting one, and each choice has its advantages and disadvantages. Let’s examine each one to give you a better idea on which route to take.
Relocating
Selling your home and moving can be an exciting endeavor, but it can also be a stressful one. If you are running out of space or need to be nearer to your job, relocating may be the way to go.
Advantages
Moving and purchasing a new home can give you plenty of positives that are certainly worth noting.
- Fresh Start: Staying in your old home for many years can sometimes lead to a rather stagnant feeling, especially if you were never a big fan of the layout or area it’s in. Purchasing a new home elsewhere gives you a new start, which may be just what you need.
- Downsizing or Upsizing: Did you have a kid or two over the last few years? Your starter home that you purchased beforehand may no longer be adequate. A newer, bigger home can be the remedy to a whole host of problems.
On the other hand, maybe the family in your home has gotten smaller, and having a larger home that’s more empty is unnecessary and creating some newer issues due to unused space. If that’s the case, finding a smaller home elsewhere can provide you a more manageable home that is also cheaper, leaving you with excess cash or a lower payment.
Disadvantages
While there are plenty of positive aspects to selling a home, it can also be expensive and stressful.
- Moving Costs: There are plenty of costs to moving, and that doesn’t include all of the real estate fees, commissions, what whatever else. Moving materials and hired help are just a few of the extra expenses you’ll incur during a move.
- Stress: It’s safe to say that nobody really enjoys the moving process. Packing up your home, dealing with all of the paperwork, moving into the new one, the generally disheveled feeling during the entire process — it’s easy to see why so many complain about it.
Remodeling
If you’re looking to avoid the move, remodeling is an attractive option that can address many of the reasons for wanting to move in the first place. To learn more, read our article on, Tips for Home Remodeling.
Advantages
Remodeling provides several advantages over moving if you choose to stay in your home instead.
- Cost: Like we said earlier, moving is expensive, and can actually be to your detriment even more if the market in your area is cheaper, meaning you’ll get less for your home. The $20,000-$30,000 you’d lose on the move could instead be spent on some major improvements to the home, which not only gives you a more desirable space but improves the value instead.
- Stability: If you really like your area for its schools, nearby businesses, and scenery, a remodel may allow you to stay. This may be even more important if you have kids at home.
- Customization: Remodeling allows for you to have a home set to your specific needs. This could include adding another room on if you have more kids, or turning old rooms into different ones, such as converting an unused bedroom into an office or entertainment area.
Disadvantages
There are a few drawbacks to remodeling that are definitely worth noting.
- Hassle: Home remodeling is not some task that takes part of a day. If you are having even moderate changes made, this will include messes around your property, loss of privacy due to all the workers present, noise, and plenty of other things until the job is done.
- Practicality: While remodeling is great if you are wanting to expand a home, it may not be the most logical option when trying to downsize your space. Certain remodels for attempted downsizing may even decrease the value.
- Finance Issues: Home remodeling projects are often more difficult to finance than buying a home outright. This is because the project is usually funded with a homeowner’s loan that requires a second mortgage. This not only results in a higher interest payment but may be unattainable at all due to your credit rating. Properly budgeting for home remodeling can save cost and give you perspective on how much it will take to complete the project.
