As a homeowner, you may eventually ask yourself whether you should buy a new home or remodel the one you already have. It’s ultimately up to you to choose which way to go but we’ve compiled some tools to assist you with this multifaceted decision. 

According to Drew and Jonathan Scott of HGTV’s Property Brothers, there are some tell-tale signs to look for when deciding whether to buy a new house or remodel. According to them, the questions to ask yourself include:

With these questions in mind, now it’s time to dig deeper and help you decide whether remodeling or buying a new home is the right move for you. 

Advantages of Buying a New Home

Homes tend to increase in value over time – and when you buy a new home, you are investing in your future. Whether you plan on retiring at your current home or selling it in a few years for profit, you will be in the driver’s seat of your future as you build equity. So if you need to tap into equity later to achieve another financial milestone, the value will be there in your home.

Another key advantage of buying a new home is checking off all the missing boxes from your previous residence. If your last home didn’t have an ideal location, for example, you can use that experience to find something better during your new home search. The shortcomings of your previous home will allow you to have more flexibility and help you decide what really matters. 

If you buy a new construction home, on the other hand, you can select a floor plan that works best for you and your lifestyle. In this case, you will move into a home that is live-in ready. You won’t need to deal with the headaches of a fixer-upper or lose sleep about old appliances or outdated plumbing, for example. 

Advantages of Remodeling

The key advantage of remodeling your home is that you don’t need to make any major lifestyle changes. You can even improve your lifestyle without needing to change everything. In addition, you decide which renovations to make and where to invest accordingly. If your kitchen isn’t meeting your needs or you could use another bathroom, you can customize those areas based on your family’s needs.

Did you know that Total Mortgage has loan products to help you with the costs of remodeling? We have loan experts standing by around the country to assist you in finding the best loan product for your remodeling.

Disadvantages of Buying a New Home

It is a very exciting time when you decide to buy a new home. However, you should be aware of some drawbacks associated with buying a new home. 

Even though you are choosing your new home’s location, you might need to compromise on a few features. If you’re moving into your dream neighborhood, for example, your new home might be farther away from the office, creating a longer (and less convenient) commute. Alternatively, you might be moving into a different district that requires your kids to change schools. Even if you’re just moving further away from friends and family, all of these things are worth considering when purchasing a new home.

Remember that when you leave your home, you will also leave memories behind. Whether it’s those notches in the wall representing how fast and tall your children were growing or the living space where you gathered as a family before, these things will not be coming with you. The bright side is that you will have a clean slate to create new memories in your next home. 

Disadvantages of Remodeling 

Remodeling has some pitfalls too. If you’re doing a major overhaul like adding square footage, you might need to think about requesting construction permits for your property. Applying for the necessary clearance takes time and money. In this case, you might also need to hire an architect to submit your expansion plans to the town. If these extra steps are worth staying in your current home, then remodeling may be the right choice for you. 

Keep in mind that remodeling projects involving electrical or plumbing will likely require the necessary permits. If your neighborhood has an HOA, you may be limited in the aesthetic changes you can make to the exterior of your home, whether it’s the paint color or landscaping, for example. 

Buying Costs 

In the current real estate market, home prices are declining. This means you may be able to afford a home that you otherwise wouldn’t have. However, you may be unable to list your current house for the price you want. In this market cycle, you might need to compromise on the listing price to attract potential buyers. 

Below is a list of some of the buying costs associated with purchasing a new home: 

Remodeling Costs

Remodeling isn’t cheap! HomeGuide.com says the average cost for remodeling ranges between $15 and $60 per square foot.

While homes come in many different shapes and sizes, the average remodeling price tag is between $19,800 and $73,200. Here is a breakdown of remodeling costs to help you decide if it’s better to remodel or move: 

Explore Financing Options With Total Mortgage 

Whether you buy a new house or remodel the one you currently live in, Total Mortgage offers financing options for both. If you’re looking to pay off your mortgage fast through a 15-year fixed loan or go with the popular 30-year fixed rate, Total Mortgage has the loan to fit your needs. 

If you decide that remodeling is the better option, Total Mortgage can make this expense more affordable. For example, a homestyle renovation loan allows you to roll your renovations into your mortgage. It is excellent for fixer-upper properties or sticking to a budget with renovations. You will find minimal out-of-pocket expenses and greater term flexibility than other loan products. 

In addition, consider refinancing your current mortgage to help pay for the renovation costs. Reach out to a Total Mortgage expert in your neck of the woods to get started on your home renovations.