It’s simply a part of life: Realizing that home you bought years ago is no longer serving your needs. Whether you’d like more space to accommodate your growing family or have your heart set on a different style of living entirely, recognizing the gap between the home you have and the home you want is the first step. But once you identify the problem, the question becomes: Should you renovate or sell?

Keep reading for the most important factors to keep in mind when finding or reimagining the home of your dreams today.

#1 Your Emotional Connection: Even though real estate decisions often come down to the bottom line, the truth is, your emotional connection to your current home is an undeniable factor. Some questions to consider: How do you feel about your neighborhood? What about your neighbors? Is there a strong sense of community? Can you envision living out the rest of your days there or passing the home onto your children when the time comes? If your answers to these questions is a resounding yes, renovating might be the right move after all.

#2 Budget: According to HomeAdvisor, the cost of home renovations last year ranged between $17,942-$78,263 for an average of $48,002 — though of course there’s enormous variation, depending on what you’re doing and how you’re doing it (DIY vs a professional contractor). For example, remodeling a bathroom typically costs anywhere from $3,000 to $25,000, while upgrading your kitchen may cost anywhere from $5,000 to $65,000. On top of that, the current state of the economy means that construction prices are ever on the rise. To that end, you can expect to see long delays, steep expenses, and high demand for virtually any remodeling service under the sun.

#3 Smarter Design: Many homeowners base their decision to sell on the need for more space. However, a smarter layout that adds one more room but not more square footage can help some homeowners avoid the disruption and hassle of moving. Our advice? Book a consultation today to see whether reconfiguring your existing home could be the right option for you.

➤ Discover more home-selling resources with these blogs next:

• How Much Does it Cost to Sell Your Home?
• Tips for Selling an Older Home
• An Elevated Approach to Listing Homes Today

#4 The Expense Of Moving: Just because you’ve decided that moving is the right decision doesn’t mean it’s always one you can afford. For homeowners in this boat, a downward rather than an upward move may be necessary. Either way, it’s important to remember that moving is far from free. Buying a home has plenty of hidden costs, such as escrow, transfer taxes, and moving expenses (to name just a few).

Not to mention that it’s actually a good idea to stay in your house as long as possible to gain the most equity you can and recoup the closing costs of buying your current house. Many Realtors recommend following the “five year rule” to ensure the equity you have built in your home will more than cover any selling and moving expenses.

#5 The Burden Of Renovation: Patience is a virtue that anyone embarking on a renovation project will need lots of. Case in point: A major kitchen remodel involving new countertops, cabinets, appliances, and floors typically lasts as long as four months. If ductwork, plumbing or wiring has to be addressed, the job could take longer. A bathroom remodel can require two or three months, while a room addition can take a month or two.

#6 Return On Investment: Before opting to remodel or sell, we advise sizing up what return on investment you’ll see with either route. In the world of remodeling, certain upgrades are more likely to help you earn back what you pay. For example, the National Association of Realtors’ 2022 “Remodeling Impact Report” found that the cost recovered for a refinished hardwood floor was 147 percent. The cost recovered for insulation upgrades was 100 percent. But there was typically a lower amount returned for things like kitchen remodels (67 percent) or adding a bathroom (63 percent).

On the other hand, if you’re thinking of listing your current home and buying another one somewhere else, ask yourself whether you’ll be in the new place long enough to recoup the costs of taking out a new mortgage and moving. Keep in mind that it typically takes between five and seven years to earn back those upfront costs!

#7 The State Of The Housing Market: While making a house purchase solely based on current real estate trends doesn’t always make sense, understanding the local housing market can certainly help with your decision to move or renovate. Here are some factors to consider:

• Are mortgage interest rates trending high or low?
• How is the inventory of single-family homes?
• Is it a buyer’s market or a seller’s market?
• What’s the pace of sales — how long are listings remaining active?
• How does the cost of buying a house in your town compare to labor costs?
• Are there any gentrifying neighborhoods where good deals might be found?

Feeling more uncertain than ever? We’re here to help. Book a consultation with us here or reach out to our team below.