Should I Renovate or Buy New?

Answer: It depends!

By Luisa Murray Carrasco, Your Town Properties, Your Town Construction

Full remodel of a 1950’s style kitchen. Photo courtesy of Your Town Construction

On what? Well, say you like where you live, but you love the open concept architectural styles of today or your house isn’t meeting your current needs. The question becomes, should I renovate or buy a new home? The answer to that question is very personal as many of us become emotionally attached to our homes and we each have our own financial standing. Personal indeed! Let’s explore these and other factors to aid you in the decision making process.

Since this process is very personal, a good idea is to start with a wish list of the items you want in a home and circling the wishes that renovation can fulfill. If you’ve got most of the items on your wish list circled by the end, move on to the financial considerations. If you don’t, you probably need a different house, according to Christy Biberich, who appears on the HGTV show “Property Brothers” and owns a design firm in Los Angeles.

Financial experts agree that there are several points to consider in making your decision. Some of these include “Will the renovation make sense for your home’s value?” (investment vs. value of your home). You don’t want to spend $100,000 to renovate a kitchen if the value of the house is $150,000. “How long will the renovation process affect me and my family?” “How long do I plan to live in the house?”. Experts recommend, if you are going to do a major renovation you want to be there for 7-10 years more.

Run a credit report on yourself. Take the time to clear any errors on the report that may be affecting you overall score adversely. Whether you will apply for a home improvement or mortgage loan, having the best score possible allows you to get better interest rates.

The decision to renovate or buy a new house is unique to each individual and requires some introspection and analysis. Whatever you decide is right for you, it’s best to develop an attitude as if you’re going on a challenging adventure to win an amazingly beautiful outcome, in the end!