Does your current home no longer serve your needs?
If so, you may be torn between relocating to a new home or renovating your existing one. This can be a difficult choice, and there’s a lot to consider—including potential costs, long-term financial implications, and quality of life.
Please enjoy the video then continue reading on! Oh, and when you’re ready let’s book a visit. As an example, we will consider home renovations or relocating to Colorado.
![Should I Renovate or Relocate My House in Denver Colorado? [BLOG ARTICLE]](https://i.ytimg.com/vi/nP96TRnL5bI/maxresdefault.jpg)
Carrying out a large-scale renovation and remodel of your home is a major commitment, maybe just a notch below buying a home. You have to give your full attention to it, from managing a budget to buying materials and selecting contractors to do the job for you. This does not include the hassles of shifting to a temporary residence during the tenure of the construction.
On the other hand, if you think “I want to move to Colorado” it is not an easy decision to make. Viewing or buying a new home is often a once-in-a-lifetime project and notoriously taxing.
So, which is the better option for you?
1. What Are Your Motivations for Making a Change?
One of the points that will help you make a decision of whether to renovate or take help in moving to Colorado is the state of your current home. Some limitations can be addressed with repairs and renovations while others will need relocation.
Renovate
If your house has gone through years of sustained living and has dated kitchens and bathrooms, a complete overhaul will bring it up to sleek modern interiors. Or if you are cramped for space with new additions to your family, making changes like adding an extra bedroom or bathroom is not a big deal provided you have the budget for it. Having an additional accessory dwelling unit or extension can accommodate a multi-generational family.
In fact, many Americans have remodeled their homes to meet changing needs since the start of the pandemic. According to the National Association of the Remodeling Industry, 90% of their members reported increased demand for renovations starting in 2020, and 60% reported that the scale of remodeling projects has grown.
However, keep in mind that renovation is not only about building extensions at will. There are several complexities that you have to face. The changes must be permitted by the local authorities and zoning plans must be followed. Hence, discuss your needs with a local and experienced contractor or architect who can explain the requirements to you. Get in touch with us at Just Livin Realty and we will refer you to one of our trusted partners.
Relocate
Rebuilding your home is not always the ideal solution, there are many reasons why relocating is the only option. You might have switched jobs and are now required to relocate to Colorado. Or you might also want to be near your aged parents.
Post-Covid-19, about 5 million Americans have seized the opportunity offered by remote work to move to the locale of their choice. A 2022 study shows that 14 million more Americans have shown a desire to relocate due to remote work facilities.
It is not always that you will be reaching for a moving to Colorado guide because you are unhappy with your current geographic location. You might be living on a busy street and need a quieter place, or your house might be far from the grocery store. Relocating to Colorado will appear attractive too if you simply want a change of neighborhood.
2. Which Option Makes the Most Financial Sense?
There are costs involved in both renovation and moving to Colorado, and you should analyze each separately before arriving at a conclusion as to which is better for you.
Renovate
Before seeking help in moving to Colorado, consider the costs of renovation. To arrive at a fairly accurate estimate, take the help of established contractors to estimate how much it will cost to set up your dream home.
Take into account all the potential points of expenditure – materials, labor costs, overhauling plumbing and electrical systems, getting permits for the work, and more. Even though you might be a DIY person, get contractors to do the job for you if you want to live in the house peacefully for years without recurring maintenance. Most importantly, keep a reserve of 20% of your budget on unexpected expenses.
It is not the costs of construction that make up renovation expenses. When you build extensions or change the plan, additional home insurance is a possibility. During the renovation, you might have to stay in a hotel or temporary rental till your house is ready. Since you will not have access to the appliances, dining out and laundry expenses must be considered. All these possibilities can add up to a tidy sum for you, apart from the actual renovation work.
Remodeling choices can also impact the long-term value of your home. Some projects may increase your home’s value enough to outweigh your investment, while others could actually hurt your home’s resale potential.
For example, although you may enjoy the additional living space, garage conversions aren’t typically popular with buyers.5 Refinishing hardwood floors, on the other hand, brings an average return of 147% at resale.2 The specific impact of a renovation will depend on a number of factors, including the quality of work, choice of materials, and buyer preferences in your area. We can help you assess how a planned project is likely to affect the value of your home.
Relocate
The cost of a new home, of course, will vary significantly depending on the features you’re seeking. However, you may find that it’s cheaper to move to a home that has everything you want than it is to make major changes to your existing one.
For example, adding a downstairs bedroom suite or opening up a closed floor plan could cost you more than it would to buy a home that already has those features. On the other hand, simpler changes and updates probably won’t outweigh the expense of a relocation.
If you’re considering a move, speak with a real estate agent early in the process. We can assess your current home’s value and estimate the price of a new home that meets your needs. This will help you set an appropriate budget and expectations.
It’s important to remember that the cost of buying a new home doesn’t end with the purchase price. You’ll also need to account for additional expenditures, including closing and moving costs and the fees involved with selling your current home. And don’t forget to compare current mortgage rates to your existing one to understand how a different rate could impact your monthly payment.
However, keep in mind that the interest rate on a mortgage is typically lower than the rate on other loan types—so you could pay less interest on a new home purchase than you would on remodel.6 We’re happy to refer you to a lending professional who can help you explore your financing options.
3. Which Option Will Be the Least Disruptive to Your Life?
A final—but critical—consideration is the time and hassle involved with each option since both renovating and relocating involve a significant amount of each.
Renovate
Don’t underestimate the time and effort involved in a large-scale renovation, even if you choose to hire a general contractor. You will still need to consider and make a number of decisions. For example, even a fairly basic kitchen remodel can involve a seemingly-endless selection of cabinets, tile, countertops, paint colors, fixtures, hardware, and appliances.
And don’t assume that you will get out of packing and unpacking if you stay in your current home. Most renovations—from kitchens to bathrooms to flooring replacement—require you to remove your belongings during the construction process.
The time frame for a remodel is another consideration. High demand for contractors and ongoing material shortages can mean a long wait to get started. And once the project is in progress, you can expect that it will take a couple of weeks to several months to complete.7
Contemplate whether you will be able to live in your home while it’s being renovated and how that would impact your routine. For example, being without a functional kitchen for months can be frustrating, inconvenient, and expensive (since you’ll need to purchase prepared food). Remember that delays are inevitable with construction, and consider what additional challenges they could present.
Relocate
Of course, finding a new home and selling your current one also takes a significant amount of time and energy. According to the National Association of Realtors’ 2022 Profile of Home Buyers and Sellers, the average buyer searched for 10 weeks and toured a median of five homes.8
However, in many cases, the timeline can still be shorter than a major renovation. Once you find a home that works for you, it typically takes between 30 and 60 days to close if you’re taking on a mortgage—and the process is even faster if you’re paying with cash.9 Plus, you can look for your dream home without the inconvenience of living in a construction zone.
However, a move comes with its own stress and disruptions. If you’re selling your current home, you’ll need to prep it for the market and keep it ready and available for showings. Once you’ve found a place, the packing and moving process takes time and work, as does settling into a new home—especially if it’s in a different neighborhood.
Fortunately, we are here to help make the moving process as easy as possible, if you choose to pursue that route. We can help you find a property that meets all your needs, sell your current one for top dollar, and refer you to some excellent moving companies that can help pack and transport your belongings.
WHATEVER YOU DECIDE, WE CAN HELP
The decision to renovate or relocate can be overwhelming—but this choice also presents a powerful opportunity to improve your quality of life.
There’s a lot to consider, from how renovations could impact your home’s resale value down the road to your neighborhood’s current market dynamics. We’re happy to help you think through your options. Get in touch for a free consultation!
The above references an opinion and is for informational purposes only. It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.
Sources:
- HousingWire –
https://www.housingwire.com/articles/46384-americans-say-buying-a-home-is-most-stressful-event-in-modern-life/ - National Association of the Remodeling Industry –
https://cdn.nar.realtor//sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf?_gl=1*3pfs0m*_gcl_au*NTU2MDQ0MzAyLjE2ODMyMzgzMTY - Business Insider –
https://www.businessinsider.com/5-million-people-moved-because-of-remote-work-since-2020-2022-3 - Forbes –
https://www.forbes.com/home-improvement/contractor/home-renovation-costs/ - U.S. News & World Report –
https://realestate.usnews.com/real-estate/articles/10-home-renovations-that-can-decrease-the-value-of-your-home - Bankrate –
https://www.bankrate.com/mortgages/mortgage-vs-home-equity-loan/#differences - House Beautiful –
https://www.housebeautiful.com/home-remodeling/a25588459/home-renovation-timeline/ - National Association of Realtors –
https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers - Forbes –
https://www.forbes.com/advisor/mortgages/how-long-does-it-take-to-close-on-a-house/