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What to Consider When Deciding to Renovate or Buy

It’s not always easy to decide if you should stay in your current property and spend money on renovations, or move into a new house with shiny upgrades you didn’t have to do yourself. Families grow, priorities change, family members move in and out, and once-desirable neighborhoods are no longer ideal.

There could be many reasons to start discussing whether to renovate your old home or bite the bullet and move, but let’s take a look at the cost of renovating your home vs. buying something new to help you decide what to do.

Rising Renovation Costs

You may consider finishing a few home improvement projects next year, but you’re worried you won’t have enough money for them. Between inflation and supply shortages, we have seen the prices of building supplies surge.

Homeowners invested an average of $8,484 on home improvement projects in 2022. Despite rising interest rates, 50% of people anticipate maintaining their level of spending in 2023, with 28% expecting to do so and 22% anticipating doing so.

Although lumber prices decreased in the second half of 2022, they are still higher on average than they have been since 2020. The price of timber had significantly increased once more by the end of November 2022 and is now sitting around 429.4 USD per thousand board feet.

What to Consider When Deciding to Renovate or Buy

Your Budget

Being realistic about your budget is crucial when deciding whether to renovate your current home or buy a new one. Unexpected problems like rotten floor joists or out-of-code electrical can cause renovation costs to exceed the initial budget.

It is necessary to fix these problems, but doing so might cost more than you had planned for a new bathroom and pot lighting. Finding a new home might be the better option if your budget is limited.

Your Time

It can take a lot of time to remodel a home; a full kitchen renovation may take three to six months to complete. If your family needs to add a second bedroom in order to remain in their current home, that project may take a month or two to complete.

Your Space

Consider the reasons you feel the need to remodel or change your home. Is the space just too small for a growing family, even with a bedroom addition? Is the area noisy, or is the street extremely busy (in a bad way)?

If there are outside forces causing you to want to move, pay attention to them and start looking at home listings.

You may find that moving is the best choice for you or your family. Or you might come to the conclusion that making do with what you already have by remodeling or adding an addition is the better course of action. Keep in mind that there is no right or wrong answer. It depends on your priorities and what you’re looking for.

However, if you no longer wish to renovate your home, you will need to list it with a reputable realtor, such as Lauren Michaels Real Estate Partners. Contact us today to start the process of listing your current home and finding your new dream home.