We hear these questions all the time: Should I remodel my home or buy a new one? If I’m selling, should I remodel first? And if I do, will I get my money back? The answers depend on your plans, your home and your local market. Here’s how to think it through.
Start With Your Timeline
A good rule of thumb: if you plan to stay in your home five years or more, remodel for yourself. Make it the home you love, because you’ll be the one enjoying it.
If you might sell within five years, be strategic. Find out what buyers in your area are looking for, what they’re passing on, and what the local market is doing. That way your remodeling dollars go toward projects you’ll enjoy now and that buyers will value later. We’re happy to come out, look at your home and talk through your situation.
Remodel or Move? Questions to Ask Yourself
Many homeowners face this choice. One partner wants a bigger, newer home, and the other wants to expand and update the home they already have. There’s no universal answer, but breaking it into two parts helps.
The lifestyle questions
- How important is your current location to you and your family, including the neighborhood, schools and commute?
- How do you feel about any changes coming to the area?
- Does your home’s size and layout work for you now? Will it still work in 10 years?
- If you need more space or a different layout, can your home and lot accommodate it?
- Does your home have most of your “must-haves”?
- Can you handle the time, disruption and stress of a major remodel?
- If you moved, are you confident you could find the same feeling, or better, somewhere else?
The financial questions
To compare the two options, you’ll need a few numbers:
- What your home is worth today, as is. We can prepare a free market analysis.
- What it costs to sell: preparing the home, moving costs, commissions and possible taxes
- What it costs to buy: loan costs, closing costs, prepaid taxes and insurance, and any additional down payment
- What the remodel will cost, and if you’re financing it, the cost of borrowing through a cash-out refinance, home equity line or contractor financing
- What’s for sale that already has the updates you’re thinking about
Then ask:
- Is it more expensive to remodel, or to sell and buy?
- How would a new mortgage payment, or a payment on the remodel, affect your budget and your future?
- Would a new home be a better long-term investment than your updated current home?
- How much would the remodel actually increase your home’s value? (Most projects don’t return their full cost.)
- What’s the outlook for home values in your area over the next few years?
It’s also wise to talk with your tax advisor and a lender. Your situation may make one option clearly better than the other.
Remodeling to Sell? What Pays Off and What Doesn’t
Some projects are simply necessary to make a home sellable. Others, if they don’t match what today’s buyers want, can actually cost you at resale. Keep these in mind:
- Most remodels don’t return 100% of their cost. The annual Cost vs. Value report from Remodeling magazine tracks typical returns, and exterior projects like new garage doors and entry doors often rank near the top.
- The best returns are usually the least expensive. Cleaning, decluttering, fresh paint and staging consistently deliver the biggest bang for your buck.
Renovations that can hurt your value
- Bold, personal finishes. Brightly colored tile or other flashy features can turn off buyers who don’t want to start their ownership by redoing them.
- Risky paint colors. Paint is one of the best updates, as long as you stick to neutrals that make the home feel bright and let its best features shine.
- Squeezing in an extra bedroom. Carving a small extra bedroom out of a larger room often doesn’t add the value you’d expect. It’s usually better to play up the features your home already has.
Planning a Kitchen Remodel? Ask These 3 Questions First
The kitchen is one of the most popular rooms to remodel.
1. What does your dream kitchen look like? List everything you’d want, from floors and countertops to appliances, fixtures and backsplash. Collect ideas online and in design magazines.
2. What can you afford? Kitchen projects generally fall into three levels:
- A cosmetic refresh: the layout stays the same, with new paint, hardware, fixtures and possibly appliances
- A mid-range renovation: adds new cabinets, countertops and flooring
- A major remodel: changes the footprint, like moving walls or appliances, and replaces everything
Costs vary widely with materials and current pricing, so get detailed estimates before you commit.
3. Do you need a professional? Many homeowners can handle small cosmetic updates themselves, but bigger jobs are best left to the pros. See our guide, How to Hire the Right Contractor in Massachusetts, for tips on finding the right one.
Not sure which way to go? Give us a call. We’ll help you look at your home, your options and the local market so you can make a confident decision.
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