Should You Sell Your House and Buy Another One, or Stay and Renovate the Current One? Deciding whether to sell your house and buy another or stay and renovate isn’t a straightforward decision for many people right now.
Consider the following:
Mortgage Interest Rates: If your current mortgage has a lower interest rate than the current rates, you might hesitate to trade it for a higher one.
House Prices: With house prices still at all-time highs in many areas, you might feel you’d overpay for a new home, even though you could get a premium for your current one.
Housing Shortage: The shortage of houses for sale in many areas might make it challenging to find a suitable option. Even if you do, you could face fierce competition from other buyers.
These concerns are valid if you’ve considered selling your house and buying another one.
Consider Staying and Renovating
Staying in your current house and making improvements using the equity you’ve likely built up isn’t a wrong decision—if you plan on staying put for many years to come.
What’s Causing You to Consider Moving?
People move for various reasons, some of which can be resolved by renovating the current home, such as upgrading to a nicer, more updated home or increasing living space. However, some issues can only be solved by moving:
Relocation for Career: If you need to relocate for your career or a better commute.
Downsizing: Reducing your home’s size wouldn’t make much sense.
Divorce: Living with an ex-spouse after a divorce is usually not ideal.
Better Schools: Moving to a district with better programs for your children is wiser than waiting for current schools to change.
Location Issues: You can’t change that without moving if you live on a main road or near train tracks.
If selling your house has been on your mind, consider the underlying reasons and whether they will resurface if you decide to stay and renovate.
Consider Renovation Costs and Returns
If you decide to renovate, remember that not all improvements will raise your home’s value enough to cover the costs. According to the 2024 Cost vs. Value Report, only three home improvement projects offer a positive return on investment:
New Garage Door: This produces an average profit of $4,238.
Changing Your Front Door to a New Steel Door: This results in an average profit of $2,075.
Replacing Siding with Stone Veneer: This adds $6,634 to your net profit.
Other renovations, like major kitchen and bath upgrades or home additions, might increase your home’s value but not enough to recoup the costs.
If you plan to stay in your house for years, it doesn’t matter as much if you can afford the projects and will enjoy living in the home more. However, if there’s a chance you’ll still want to move when market conditions improve, avoid major renovations.
Get Professional Advice
Before deciding, consider consulting a local real estate agent for insights and advice. While general home improvement statistics apply broadly, they may vary in your local area and price range. An experienced agent can help you make an educated decision based on the current market and your situation.
We moved instead of renovating for another reason. We wanted a one story home instead of our two story. Now we can comfortably age in place without the perils of stairs that many of our relatives have struggled with