After living in the same home for years, you may find that you’re ready for a change. For many people, that change involves selling their current home and purchasing a new one. However, other homeowners may get the reset that they need by renovating their current home.
If you want to upgrade your home in South Florida, you can consider renovating your current home or purchasing a new home. This article will outline the pros and cons of each so that you can make the right decision for your household.
The key difference between renovating your home and purchasing a new home is cost. In the case of purchasing a new home, selling your current home will provide funds that you can put towards the new property. However, there are also expenses associated with selling a home that you’ll need to pay upfront. These include:
Repairs and home preparations
There may also be costs associated with purchasing your new home, including closing costs, home appraisals, purchasing appliances and/or furniture, and remodeling the new home, if needed. Additionally, if your current mortgage overlaps with the new mortgage, you’ll have to cover the cost of the overlap. If the new mortgage is more expensive than your current mortgage, you’ll also have to budget for the higher monthly mortgage payments.
With that said, renovating your current home is also a lofty investment. The cost of remodeling a home can fluctuate greatly depending on the room(s) that you choose to work on, the materials that you choose, and labor costs. For perspective, the average 2,500-square-foot home costs anywhere between $15,000 and $200,000 to renovate, according to Home Advisor. Know that the money spent on renovations now will boost the value of your home and allow you to charge a higher asking price if you sell your home in the future.
If moving to a new neighborhood is important to you, purchasing a new home is preferable to renovating. When you shop for a new home, you’ll have the opportunity to find a neighborhood that ticks every box. On the other hand, if you’re happy with the neighborhood that you’re in, renovating your current home can provide the upgrade that you want without relocating your family. There is, of course, always the option of purchasing a different home in the same neighborhood, too.
If you’re going to invest in renovating your current home, it’s wise to plan on living in it for many more years. This will make the investment worthwhile. For example, if you’re currently in what you consider your “forever home”, but just want to upgrade a few elements of it, renovating is likely the best choice. But, if you’re currently living in a two-bedroom home and plan to have multiple children in the future, you’ll need to move eventually whether you renovate now or not. In this case, the wiser choice would likely be to save the money that you would spend on renovations to put towards the eventual move.
If you’re interested in buying or selling real estate in South Florida, contact the experienced team at Great Florida Homes today.
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