Have you have been in your home for a few years and are wondering if it's time to move or just remodel? Especially with the way the real estate market currently is, you're probably weighing the pros and cons of each.
Let's take a look at 2 key factors and weigh the pros and cons to see which option is the right choice for you and your family.
Cost
If you're considering the selling and purchasing option, you'll want to make sure to add in real estate commission (around 5% - 6% of the sale price), title insurance (around .5% - 1% of the sale price), closing costs (around 3% - 6% of the loan amount), and any repairs you may need to make. In addition, physically moving comes at a cost as well, regardless if you do it yourself or hire professional movers.
Remodeling obviously isn't cheap, either. According to the September 2022 data from Home Advisor, the U.S. average home renovation costs $47,922. Two of the most popular rooms to remodel, the kitchen and bathrooms, are the most expensive. Remodeling a kitchen can be anywhere from $5,000 to $65,000+, and bathrooms are anywhere from $4,190 to $55,800.
Timing
Selling your home could take anywhere from a few days to a few months. During the time when your home is active on the market, you have to make time to keep it clean and ready for showings and open houses. Once the home goes under contract, inspections are usually scheduled, which is more time you will need to be out of the home. Finding a new home could take just as long or even longer because you want to make sure you find the right one.
Once your current home closes and you find a new home, you're not done yet! You have to pack and move, which we all know can take so much time!
Remodeling is no walk in the park either. You'll be living in a constant mess until it's completed, and who knows how long it may take with potential shortages and delays.
Pros and Cons of Moving
Pros:
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You get the home you want.
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You'll have more space and a new floor plan.
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You can explore a new area.
Cons:
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Leaving behind memories from your old home.
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Potentially longer commutes to work, school, etc.
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Costs to sell/buy and move.
Pros and Cons of Remodeling
Pros:
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Your lifestyle and commutes stay the same.
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You can make the home exactly what you want.
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Increased ROI.
Cons:
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Living in a constant mess.
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No guarantee of an increased ROI.
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Can cause lots of stress.
If you're thinking about moving or remodeling in the next year or so, take some time to look at these factors and weigh the pros and cons of each option. If you need any help or recommendations, reach out to me! I'm always happy to help.
