How to Choose Between Buying a New House vs. Renovating

Did you know that the average home cost in the United States is $374,900? Many people decide to move out of their homes every year into a new house, but is it better to buy a new home or renovate your old one? The answer will depend on a variety of factors such as the age of your home, how much money you want to spend, and what you are looking to get out of a home in general.

For example, do you plan on growing your family and want more space? Or do you just want a new place to settle down? Whatever the case, there are many things you will need to think about before you decide to buy a new home or renovate your old one.

Keep reading and learn more about how to choose the right choice for you below.

Think about How Much It Costs to Move

As mentioned before, the cost of buying a new house on average is almost $400,000. If you want to live near a big city or near the coast, you can expect to pay a lot more. But when it comes to deciding between the choice to buy a new home or renovate old one, the cost of the new house itself is not the only cost you’ll need to consider.

You will also need to consider the cost of packing and moving all of your belongings. You might not be too worried about the cost of moving because you’ll get plenty of money once you sell your old home. But how much money will you really get out of your house?

If you sell your house, you will need to give a percentage of the money to your real estate agent. You may also need to repair your home before you sell it, and repair costs can quickly pile up. Even if you don’t need to make any repairs and don’t hire a real estate agent, you will still need to pay the capital gains tax.

This tax can take a large chunk of the money you’ll receive from selling your house. After all of these fees, you will need to pay for the services of professional movers to move your belongings from one place to another. Keep in mind that the cost of professional movers can be very expensive depending on how far you’re moving, especially if you’re moving to another state or across the country.

This is not to mention that you will have to pay for a mortgage for your new house and will need to spend money on furniture. Keep this all in mind before you decide to move or remodel your home.

Think about the Cost to Renovate Your Home

If you want to renovate your home, you won’t have to worry about several costs. There will be no need to pay professional movers, there will be no capital gains tax, and you won’t have to pay for a mortgage for a new house. Instead, you can stay where you are and make your home look new by remodeling it.

Many people decide to leave their homes because they need more space. However, when it comes to the choice to add on to your house or move, adding to your house can still be much cheaper and you will still have plenty of space to work with. You will also have the chance to transform your home into the home you’ve always wanted.

But keep in mind, renovating your home isn’t always easy. You might need to get permits for certain renovations, especially if you plan on changing the structure of your house, the plumbing system, the windows, and so on. If you plan on adding new structures to your home, you will need to hire an architect to ensure that the job gets done the way it’s supposed to.

While you could do a lot of the renovations on your own if you had the skill and the time, many people don’t have this luxury. If this is the case, you will need to hire workers to build the new parts of your home for you. And, of course, the materials needed to build the new parts of the house will cost you.

But if you are doing some simple renovations such as a bedroom renovation, you might not need to worry about the costs so much. The cost all depends on how far you want to take the renovations.

How to Decide

It can be hard to decide whether to buy a new home or renovate the one you already have. On one hand, a new home can move you to an interesting new location and you can get a completely new start. On the other hand, staying in your home and renovating it can save you plenty of money and you can transform it into the house you’ve always wanted.

Whatever decision you make, you will need to spend a large chunk of money on different services. For that reason, you will want to go over your budget several times before making any kind of decision. If your budget is not an issue, you will need to consider what decision feels best for you.

If you feel that it’s time to move out of your old house and into a new one, feel free to do so.

Is It Better to Buy a New Home or Renovate?

Is it better to buy a new home or renovate your old one? At the end of the day, it all depends on your budget and what you personally want. While buying a new house could be expensive, it can give you more space and the opportunity to start fresh.

While remodeling can also cost you, it tends to be cheaper and you can turn your home into the home you’ve always wanted. To learn more, explore more of our website.