Are you debating whether you should remodel your current home or sell it and but a new one? Here is a list of financial reasons why you should consider remodeling your home.
The newer the house the more a buyer will pay in square footage. You will always spend more money buying new than remodeling old. Remodeling adds value to your home. So not only do you save money by renovating but you also add equity in your home by updating it.
Remodeling saves the money you would have spent on a down payment and realter fees. Consider the cost of all the fees you pay in buying a house. You will spend thousands and thousands of dollars on closing cost and realter fees. That’s money you could invest in your home and grow your home’s worth.
If a homeowner has enough cash in the bank to pay their remodel project without having to take out a loan, they don’t have to worry about higher monthly payments or rising interest rates. For older homeowners who have ample savings, an improved home with no additional debt this is a great advantage.
Also moving is costly when you consider in the cost to make updates, place your house on the market, pay closing costs and then pay for a move. The cost of moving can be very expensive. If you plan on contracting full-service movers, it can get pricey. Expect to pay at least $1,000 for just a moving van rental. Especially if you’re expecting a modest net profit on your house, the additional cost to relocate may not be worth it.
Instead, you can improve your home with projects that can grow its value. A new roof, a master suite addition or a kitchen renovation can all be key changes that will make your house more desirable down the road.
So, before you throw up a for sale sign in your front yard consider the cost of moving versus remodeling. There’s a good chance you can save a lot of money by staying!