To renovate or to relocate – that is the question! But before you make the decision, serious consideration should be given! Why? You might be shocked at the actual costs of doing a renovation, and the costs of hiring contractors and building material etc.
In addition, managing a renovation or addition can be a full time job in itself!
What you need to consider:
- Costs – estimate from contractors, supplies costs etc.
- Budget – what is your budget for the project, what if you go over?
- Management – hiring contractors, overseeing the project and timelines
- Time and inconvenience – your time is valuable, do you have the time to oversee such a project?
- End value of your home after completion
If you are in a neighbourhood where your home conforms to the average price, then you want to ensure that you don't over improve and become the best and most expensive home in the neighbourhood.
Let's look at this example:
The current value of your home is $450,000.
The cost of an addition and renovation is $200,000.
This brings your new cost (home value) to $650,000.
But the average value of homes in your neighbourhood are $500,000.
At that point, it will likely be a lot harder to sell, so it may be time to look at upgrading into a larger or updated home in a neighbourhood where the values conform.
It is always best to consult with a professional on the end value of your renovations and the impact those upgrades before contracting. Whether deciding to renovate to relocate – it’s always best to be fully informed!
Renovation Tip: Always remember to always budget 25% more than what you expect for "extras". Many people start renovations, and before the project is complete, they run out of money. There is nothing worse than having to live in a half-complete renovated home!
If you have any questions about renovating (home value before and after) or if you are thinking about relocating, I would be more than happy to provide you with a FREE home evaluation and answer all the questions that you may have!