Move or Renovate? 3 Factors to Consider when Making the Decision

Many home owners are faced with the question of whether they should move or renovate. This can be one of the toughest decisions you will ever have to make as a homeowner. You are attached to your current house, but you want to get out and experience a change as well. Making the wrong decision could cost you a lot of money and a lot of problems in the long run. Here are a few factors to consider when making the decision to move or renovate.

1. Current Mortgage 

One thing that you will want to look at first is the situation you are in with your current mortgage. There are many factors involved in the process, but until you determine where you are, you can not decide where you should go. If you recently bought your house and the mortgage is new, it may not be to your financial advantage to move. There may be prepayment penalties involved that could cost you thousands of dollars if you were to sell. 

2. Cost to Renovate

Another thing that you should consider is the severity of the repairs needed on your house and how much it will cost to implement them. You should go through your house and determine what it is that you want to change. Make a list of the upgrades and repairs and get some estimates. If you are planning on doing the work yourself, sit down and crunch the numbers. Figure out exactly what it will cost to do what you want to do. If your house is in bad shape, it might seem like too much of a project to fix everything.

3. Housing Market

If you are thinking that you would like to move instead of renovate, you need to take a good look at the housing market. See what new homes are selling for. Could you afford the home you want? You will undoubtedly need to sell your existing house first. In order to determine if you can sell your home in a timely manner, you should seek the experience of a real estate broker. They will give you a free comparative market analysis. This will tell you exactly what you could sell your home for in the current market and about how long it could take to sell. All of this information is based on what has been going on in the market.

Once you have the information that you need from the real estate broker, your decision should be a little more clear. You can determine whether it would be smarter to renovate and stay in your home, or sell it and get a new house.