Have you been looking around your house and wishing for more space? For many homeowners, there comes a time when more space is a must. The reasons include a broad array of life events such as separate rooms for older kids, baby on the way, a home office, a hobby room, moving in an elderly parent, finally getting that bigger kitchen, adding a bathroom, or maybe you just want more room in shared living areas.
The desire for more space often sparks a classic debate in homeowners: do we buy a new home or do we build an addition? Both options have their advantages, yet the right answer is unique for each homeowner. Considerations range from budgets, taxes, and emotional factors.
To help you decide, we’ve put together quick and easy guide on when to build, and when to buy. Remember, there is no one right or wrong answer and what works for you and your family may differ from what works for others.
Buy a New Home When:
- The idea of finding, interviewing, and managing a General Contractor is more than you can bear.
- The ROI (return-on-investment) for a remodel isn’t there. You won’t regain your investment and/or you will overprice your home in your current neighborhood.
- You can’t fathom the thought of living through a remodeling process that may last weeks or months.
- The idea of house hunting is exciting to you and your family.
- The market conditions are right for you to sell your home, the tax implications are favorable, and you and your family are emotionally prepared to leave your current home.
- You have consulted with a qualified real estate agent and understand the local market conditions and the average home price of houses that have all the features you want in a home.
- You have consulted with a qualified mortgage broker are a pre-qualified for a loan amount that you can afford and is aligned with the prices of homes with the features you want.
- If keeping your existing home and buy a second home, you understand relevant tax laws and are prepared to carry both mortgages.
Build an Addition or Remodel Your Existing Home When
- Permitting and building codes in your area allow you to make your desired changes to your home.
- You have the interior and/or exterior space on your property to transform your home the way you want it.
- You have very specific wants and needs and you want it done your way.
- You have access to qualified and licensed contractors and you enjoy managing projects, including dealing with emergencies and managing overruns.
- The project makes sense financially and you have access to non-emergency savings or a home equity loan that more than covers the project budget.
- You and your family can comfortably live through an extended remodeling project that may include limited access to parts of your home and times without power or water.
- The project can be done in a manner that is sensitive to your neighbors and mindful of their property and quiet times.
Deciding to Buy or Build
It can be so exciting to shop for a new home, yet it can be equally thrilling to see the home you already love being transformed bit-by-bit every day during a remodel. Ultimately, what you decide to do needs to make sense financially, emotionally, and practically. The good news is that regardless of which path you take, you end up living in a space that is better suited for you and your loved ones.