Has your family outgrown your home? Do you need more space? If you are facing issues with your current housing arrangement, you may be tossing ideas around to find the best fit for your family, budget and schedule. Building a new home is an excellent option if you need more square footage and have the time and finances to invest in construction while you and your family live elsewhere. Renovating your current home is a cost-effective solution to modernize your space and make better use of your existing square footage.
Benefits of Remodeling
Remodeling your home offers the most flexibility and affordability. Often, homeowners truly like their house, neighborhood and neighbors, so upgrading or adding on is an excellent way to stay put while creating the home you desire within the walls you already own. Here are several reasons to opt for a remodel over building:
- Stay in the home you’ve lived in for years, filled with memories.
- Remain in a neighborhood or school zone that you prefer.
- Renovation resets the clock on age to an extent.
- Most remodeling projects allow you to stay in your home as work is completed, unlike building which requires living elsewhere.
- “Green upgrades” make your home more energy efficient and environmentally-friendly
- Finance your improvements with home equity.
- Projects can be completed individually to fit your life, schedule and finances.
- Well-executed projects increase home values.
- Permitting process is less expensive and quicker than new construction.
In some states, strict rules may govern your remodeling abilities if you own a heritage or historic home. Check local and state laws before attempting to make any changes.
Home Renovations That Add Value
Whether preparing your home for the real estate market, updating the function and appearance or adding more square footage, knowing if the reward is worth the effort is essential. Here are several home improvement projects to potentially increase your home’s value:
Kitchen Upgrade – According to Money.com, a kitchen renovation project, new cabinets, appliances and fixtures, can deliver up to 75% of its return on investment (ROI). Remodeling transforms your kitchen layout and is ultimately a more significant transformation than a renovation.
Renovate a Bathroom – Like remodeled kitchens, updated bathrooms are a significant selling point. The New York Times advises homeowners may see up to a 60% ROI on bathroom remodels.
Add On – Home additions increase both your square footage and your home’s value. The ROI depends on the addition itself: a new kitchen, bedroom, bathroom, or extending an existing space.
Replace HVAC System – A new air conditioner saves on cooling costs and increases the saleability of your home. The ROI of a new HVAC installation may be between 35-50%, especially if you live in a region that relies on air conditioning year-round.
Cost of Building a New House VS Home Renovation
In terms of cost, building a new house will always be more expensive than remodeling. Remember to factor in expenses such as purchasing the land to build on, moving and storage, and permitting and maintaining an alternative residence while your home is constructed. While we can’t offer a concise price difference, remodeling costs vary as much as new construction. Like building, remodeling costs depend on the extent of the work, square footage and quality of materials and appliances but won’t exceed the new construction price tag. If your home is structurally sound and hasn’t sustained severe water damage, remodeling will allow you to customize your home without the hassle, expense and time commitment of new construction.