If your home has become dated or you are growing out of it, the thought of moving or remodeling has probably crossed your mind.
Since this is such a huge life changing decision, you should consider the pros and cons of each alternative.
Here are some advantages and disadvantages of each to help you decide whether to purchase a new home or remodel your existing home.
photo courtesy of arnold flickr.com/photos/arnoldmasonryandconcrete/4786160151/sizes/l/in/photostream/Memories
You have memories in your current home.
Perhaps you planted a little seedling in the backyard that is now a huge tree.
Maybe you spent hours making the dining room draperies using your favorite fabric.
You might have charted your children's height each year on one of your walls.
In a new home, you will leave a lot of the memories behind.
Neighbors
You have spent years developing relationships with your neighbors.
You may feel comfortable asking them for a cup of sugar or to watch your home while you are away.
With a new home, you will need to make new relationships, which take time to mature.
In contrast, if your neighborhood is deteriorating and it is not as safe as it once was, moving may be a good option.
Exactly What You Want
With a remodel, you can select exactly what you want in your home.
You can select the flooring, ceilings, paint colors, cabinet style, and everything in between.
Expensive Closing Costs and Moving Expenses
If you remodel, you will not have to pay realtor fees, closing costs, or moving expenses, which can be tens of thousands of dollars.
The cost of those expenses can be 10% of the home's value or more.
Finding a Buyer for Your Existing Home
You may have loved your existing home, but it may be hard to sell.
If you need the money from the sale of your existing home to buy your new home, there may be a lot of stress and time wasted waiting for that one buyer.
Your dream home may have been purchased by another buyer while you are waiting.
Inconvenience
There will be many inconveniences in a large remodel.
You may be without a kitchen for weeks.
Workers will probably be in your home making a lot of noise, creating a lot of dirt, and constantly keeping the exterior door open from 8am until 5pm every day, so you will have very little privacy.
You may have a dumpster in your driveway for months.
You may actually have to move out of your home for a few weeks.
Blown Budget
Remodels almost always go over budget.
Perhaps it is a plumbing leak, a structural problem, the wiring in the home is not up to code, or there are delays due to weather.
Over Improving Your Home
If you spend $50,000 on a remodel, that doesn't necessarily mean that your home will increase in value by at least $50,000.
Neighborhood homes tend to have a maximum price that they sell for, so don't over improve your home.
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