Purchasing New vs. Remodeling Your Home

At some point many homeowners will consider the option to buy a new home or remodel their existing home.  The current home may be outdated, not large enough, or sometimes too large for the family.

Your Current Neighborhood

neighborhoodOne or more factors contributed to your choosing the home you currently live in:  purchase price of the home, neighboring schools, shopping centers, easy access to major highways, quiet neighborhoods, urban or rural preferences. But these factors may no longer be important to you.  If your children are grown and are no longer in the schools, the proximity of schools is no important.  If you bought your current home because it was in the “country” because you enjoy distancing yourself from city noise and congestion, and the city has grown up all around you, relocating is an option to consider.  If you opt to remodel your home instead, updating the current floor plan may be the best route to take, allowing you to remain in your current home and neighborhood.

Current Home Layout

layoutA professional home builder can assess your current home and work with his/her home plans designer to advise you on remodeling your home.  You may have heard the term “open-concept” layout, but are not familiar with its utility.  This is a floor plan that is designed to function efficiently with family togetherness in mind.  Think of an Italian kitchen where the preparation of meals is done in the same large open area, with a brick oven and butcher block table, where meals are served and family gathers in a sitting area to enjoy one another’s company. The isolated formal dining and living rooms served families’ needs, and may still do, but in the last two decades the transition to an open area is both practical and functional for contemporary living.  This open-concept floor plan ties in the kitchen, the breakfast/dining area, the family room, and possibly a tech work station, into one large open room. It may be that simply removing one or more walls is all that your current home requires to enjoy this family gathering room.

Finances

Undeniably, the major consideration when deciding whether to buy/build new or remodel your home is finances. You may not be able to sell your home for the price you ask.  With the market downturn, home values have declined.  Selling may not be a sensible option, and you may decide to remain in your current home.  Although low mortgage loan rates currently available are attractive (compared to 13.5% in 1980 when I purchased my first used home!), the thought of a new mortgage may not be appealing. Keep in mind too the costs associated with the selling and/or buying, such as closing costs, Realtor commission, and moving expenses.  Remodeling may be the more attractive option.