Build or Remodel: Should You Stay or Should You Go?

If you are like most Americans, there’s a good chance that you are choosing to stay in your current home or find a new home to create the perfect space you have been wanting. In our humble opinion, the answer to whether you should build a new home or remodel your existing home is yes! We’re not really hedging our bets by saying build or remodel. The fact of the matter is that one answer isn’t right for everyone. As for the timing, there are several things that make this a good time to build or remodel.

How much do you love your current home?

If you mostly love your current home, then definitely remodel. To find a home almost exactly like your current one with a few modifications would be tough. It would be best to just make the needed modifications to your home that you would like to see. You can start collecting home remodel ideas using Pinterest, Houzz, or scraping together your own collection, whichever works best for you. However, if you are looking for something completely different, it may be time to look at a new home. Find exactly what you are looking for in a home. Take a look at multiple floor plans, download a few to find out what you want in your next new home.

Financial Reasons

Knowing how much either building a new home or remodeling will cost is also a major factor to look into. Also, looking into what it will cost today versus down the road. Your cost to borrow the money will probably increase as well as interest rates may increase. And just a few percentage points difference in your mortgage rate can add up to thousands of dollars in just one year. 

Are the financial markets going to improve and stabilize? We’re not financial experts (and those who claim to be aren’t looking so smart at the moment!), so we won’t venture a guess on that.But if you want to invest in something that historically has paid exceptional dividends—and will provide you with years of comfort and enjoyment—now is a good time to build the home of your dreams, or to turn your existing home into the home you’ve always wanted it to be.

Many homeowners are turning toremodeling as a way to meet their changing needs now (need for more space, more functionality, improved energy efficiency) as well as positioning themselves to sell their home when the market improves (an updated home is easier to sell). And not only will these updated homes be easier to sell, they will also command a higher price—if the homeowners are smart about how they remodel. So what does that mean for you? If you decide to stay in your home and update it to meet your needs, which renovation projects will pay off if and when you decide to sell?

Here are a few suggestions from the National Association of the Remodeling Industry (NARI) to help homeowners get the most out of their remodeling projects:

Don’t neglect curb appeal

It can be easy to overlook the exterior of your home. You see it every day. But your roof, your siding, and your windows and doors are continually subjected to the elements. That means they generally need to be replaced after a few years. You’ll be amazed at how a “face-lift” like this will improve your house (and how you feel about it). And in terms of re-sale value, an updated exterior gives you an edge. First impressions are important to buyers, and the outside of your house is the first thing they see. It’s probably what makes them stop in the first place.

Think About Energy Efficiency

According to Energy Star heating and cooling account for 50 percent of a home’s energy consumption. If your system is more than 10 years old, it is probably time to replace it. The good news is that new, energy-efficient systems are not only more cost-effective but are also better quality. You get more comfort at a lower rate. And energy efficiency is something buyers are increasingly aware of.

Increase Insulation and Sealant in Your Home

Any home will benefit from increased insulation and sealing—regardless of climate. Older homes are often under-insulated, so if you’re in an older home, that is definitely something to look into. Recent insulation innovations such as spray foam or cellulose provide even more effective insulation efficiency. And proper insulation evens out temperature variations and reduces energy consumption.

The Kitchen is Still King

Kitchen and bath renovations remain the most popular room renovations—for good reason. Homeowners continue to see a high return on money invested in updating these two highly used areas of the home. In addition to increasing your own enjoyment of your home, these two rooms are critical in resale.