You’ve lived in your house for a while, and your lifestyle has changed over the years. As much as you love your home, it just doesn’t cater to your needs as well as it used to. This brings you to a very common dilemma for long-time homeowners: Should you buy a completely new home, or renovate to better suit your lifestyle? 

To assist your decision, here are a few key factors that can tell you whether it makes more sense – both financially and emotionally – to buy or renovate. 

What Does the Local Real Estate Market Look Like? 

If you’re not sure if buying a home is a good idea, one of the first things you should consider is the state of the local real estate market. Assuming you have a Homestead Exemption capping the growth of your home’s property taxes, if you’re sitting on unrealized gains, moving could up your property tax bill significantly. 

Say you bought the home for $500,000 and it’s now worth $1,000,000. If you sold your home for the $1,000,000 and wanted to stay in the area, you’d spend the $1,000,000 to get the new home – and would still have to spend $200,000 to renovate it…and then have a higher property tax bill every year to boot. 

In that scenario, the alternative is to keep your home, spend the same $200,000, keep your tax bill based on your original purchase price, and have a home worth more than $1,000,000 to boot. 

Do You Like Your Location? 

You’ve heard it before and you’re about to hear it again: real estate is all about location, location, location. If you love your location, the math will likely lean towards renovating over buying. If you’re a ‘meh’ on the location, the math will likely lean towards buying in a location you love. 

We can make this way more complicated, but this is what it boils down to. 

Do You Have a Connection to Your Home? 

On that note, renovating also makes sense if you have a real connection to your home. And we get it – a house is a home when you love where you live. If you have that connection, how can you transfer that to a new property?

It’s important to remember that major renovations are a commitment to staying in the same house – and the same neighborhood – for the foreseeable future. Instead of getting the excitement that comes with moving to a new neighborhood, you’re getting the joy of watching that oak – you know, the one you planted with your kids when they were little – grow majestically. 

Buying vs. Renovating: Which Will Cost You More? 

From a financial perspective, the decision of buying vs. renovating comes down to the state of the local real estate market and the condition of your home. The only other thing that could possibly trump these two factors is your emotional connection to your home or your neighborhood. 

Whichever direction you’re leaning towards, a great first step is contacting an architect. At Debowsky Design Group, we can help you identify the biggest costs or logistical obstacles your project presents, so you have an idea of what you’re getting into. By clarifying these details early on, you’ll minimize the likelihood of unforeseen expenses or delays and ensure your project goes as smoothly as possible. Get in touch today, let’s work together!