In today’s hot real estate market, many homeowners ask if they should renovate their current home or move into a newer home. The answer could depend on what you desire in a home or your financial situation. There are some questions you can ask yourself that might help answer the question of should I renovate or sell my home.
Why Would You Want to Buy a New Home?
Before making this big decision, figure out what your current home lacks that you would want in a new home. Some of the reasons for moving into a new home include:
- You want a bigger yard or more garden space
- You want a home office
- You want more flexible space or multipurpose rooms
- You want an in-law or au pair suite
- You want an exercise room
- You want an open kitchen
- Or some other reason
If you can make these renovations in your current home, it might be better to stay in your home. If what you want cannot be accomplished by renovating, moving would be the better option.
Buying a New Home
In the current real estate market, buying a new home might not be easy. There is currently a shortage of available homes on the market. You might have a hard time finding the home you want, or it could be priced out of your budget.
You could probably sell your home today quickly and for a good price, but you could then end up not being able to find a new home exactly as you want.
It might not be possible to make the renovations you want in your current home. In this case, buying a new home would be the best decision. Or the decision could come down to the cost of renovating versus the cost of purchasing a new home.
Renovating takes planning and money. Estimates for certain renovations include:
- A mid-range kitchen remodel can cost $23,000
- A full kitchen remodel costs $66,000
- Adding a new bathroom can cost $48,000
- A master-suite remodel can cost as much as $130,000
And there are more modest renovations you can have done, like knocking out a wall to have an open kitchen or hiring a landscaper to redo your yard.
You might have the money for these renovations in your home equity. Homeowners today have a record amount of equity in their homes, and this equity can be used to renovate your current home.
To determine your equity, you need to know the current mortgage balance and the current value of your home.
To find the current value of your home, you can spend hundreds of dollars for an appraisal, or you can get it from a real estate agent. You can ask a real estate agent in Central Florida or wherever you live to give you a professional equity assessment report at no cost.
If your home can be renovated, it might be better to use your home equity to pay for renovations in your current home. If your home cannot be renovated the way you want, buying a new home would be the best decision for you.