For most people our first homes are known in the market place as a “starter home”. The home was most likely chosen primarily for financial considerations. It probably lacked some of the features that we would have wanted if our budget had been unlimited at the time. Now that your income has grown, and possibly the size of your family it is time to consider either moving or investing in your current property to add additional features and living space.
Although the decision on whether to stay and remodel or relocate has affected all of us, the decision is usually based on emotion rather than fact or situation. Before you decide on whether to remodel or relocate you should consider the following points:
- Return On Investment: Most of us are concerned that any investment we make, and doing a major remodel to a home is definitely an investment, will eventually provide us with a payback or at worst case we won’t loose any money. In order to determine if an investment in your current property is likely to have a financial benefit it is important to look at the other homes on your street and in your area. If your home is the same size as the majority of other homes, it is most likely that if you add an addition to your home it will become the most expensive home in the neighborhood. From an investment standpoint, one does not want to have the most expensive home in the neighborhood. On the other hand, if your home is currently smaller than the majority of homes, it may be a very smart investment to add an addition to expand the livable floor space. This should have the effect of increasing your home value by more than the investment.
- Architecture: The cost of adding additional floor space is usually determined by the size of the lot and current building codes for that lot. Would adding additional floor space mean adding a second floor or is their room on the lot to add to the main floor level. Don’t forget that by adding to the main floor level you will be eliminating some of the home’s outdoor space. It is also important to realize that with some homes, depending on how the original Foundation was installed, adding a second story may mean adding to the strength of the footings. This alone could mean that the project is not economically feasible. Whether you are considering a second story or an addition on the main level, try to visualize what the finished home will look like. If in your mind you are satisfied that what you want to do will be visually acceptable it is probably time to call in an architect to discuss what can and can’t be done with your property.
- Budget: Although construction costs vary from city to city and state to state you should allow a minimum of $200 per square foot for the addition of basic living space, providing the addition does not include a kitchen or bathroom. Your architect will be able to give you a budgetary number for finished construction cost based on the city and state where you are located. Higher quality finishing materials such as hardwood flooring, and natural stone tiles such as marble or granite can easily double the per square foot cost. Once you have a detailed set of Building Plans, you will be able to obtain firm prices from the contractors in your area. For budgeting purposes, it is always wise to add an extra 10% to the costs, as there are generally changes and modifications during the construction phase.
- Sweat Equity: One major advantage to a remodel rather than a relocation is that a remodel allows you to put some sweat equity into your property. Depending on one’s capabilities, a lot of the remodel work, especially items that are labor intensive, can be accomplished by a reasonably competent homeowner. These include simplistic items such as wallpapering, painting, installing light fixtures, and window coverings. For the more experience home handyman, installing finished flooring, doors and trim can provide cost savings and increased equity. Landscaping and gardening are two other areas that can become family projects and increase the home’s value. However, if you do decide to relocate rather than renovate you may find that you are doing all of the aforementioned items at your new home!
- Inconvenience: Living through a construction project, especially if involves bathrooms and/or kitchens can be a very trying experience. If you haven’t been through a major remodel, it can mean the loss of utilities for periods of time, continuous noise, dust, dirt, and a parade of workman marching through your home. The concept of having peaceful enjoyment of your home is lost completely. Relocation is not necessarily a project without heartache. There is the packing and unpacking phase, new schools, changing utilities, changing all addresses on personal documents, credit cards, and other companies that you do business with. Let us not forget the new neighbors and the loss of the old and our children’s friends and classmates.
Want biased advise on whether you should renovate or relocate, it’s available from most real estate brokers. Remember that a real estate broker makes a living when people buy and sell homes, not when they renovate. They do not receive any benefit from you deciding to stay where you are and to remodel your current property.
As with most home improvement or remodel projects, planning is the key to success!
For additional information on remodeling your home or other home improvement projects, including landscaping and gardening visit Renovation Headquarters.
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