Should I Renovate or Build?

After helping many clients work through renovations and going through one recently myself, (actually still ongoing) I thought this was a timely post.  Are you thinking about renovating an existing home or going with new build?  Here are some things to ponder.

 

 

Budget

I know I am always bringing this up.  But this is where people’s expectation of what they want and what things cost often differ.  I recommend to clients that are looking to renovate to get bids from contractors.  This gives you a more accurate estimate of what is going to cost.  In addition to that, I suggest adding a contingency to that budget.  For example, our roof needed more work than what was initially bid, which will cost us more.  There are websites that can help guesstimate the cost as well.

Depending on where you live, you can research to find out the median remodeling square footage cost.  Had we hired a General Contractor for the entire build, we could have used the $100 sf cost for our estimating.  This cost does not include the cost of the existing structure.  It also gives you an idea if you really want to invest that amount into an existing home, or find a new build and save yourself the headache.

 

Neighborhood

Can you build a new home in your desired location?  This is a big determining factor.  Realtors will tell you, “location, location, location”.  In our desired school district, while we were house hunting, there were only a handful of vacant lots.

 

source (photo by: Jessica Curtin)

 

When we found the house we are currently remodeling, I knew it was the house because the views were the best from any home we had seen previously.  We could make the house work, because the views and location made up for it.

That is not to say that I did not look at new build.  I found a really nice home with a large backyard.  But the restrictions that normally come with new build took it out of the running.  For example, it had a community pool, and the HOA prohibited you from installing your own.  A pool was # 2 on our list after location.  Not to mention this house was not in our desired location.

Depending on how far you want to take a renovation, you can make an existing house essentially a new build.  We took this house down to the studs and concrete and replaced almost all of the systems (plumbing electrical and HVAC).  It is essentially new.

 

 

source

 

Are you a new home person?

I had a realtor ask us that once.  I thought it was a silly question.  But, after our search with her and thinking about it, I really think she is right.  Personally, I like new houses with old house charm.  Given the choice, I will go new almost every time.  I like the fact that everything is new, most times it comes with a warranty, and I don’t have to deal with previous owners “fixes” and what 30 years of unknown bring.

The moral of the story is if you are a new home person, don’t fight it!  Just accept that you prefer to live in a new house.  If you really have no preference, then your realtor might just hate you!  Ha, I’m only kidding.  It definitely will open up your possibilities in the house search.

 

Not constricted by location?

If you prefer new build and are not restricted to a certain area due to commutes or school districts, you can search outside of a popular area (higher priced).  We had found a house that we loved, but found out that it would most likely be an hour plus drive for work for my husband.  I still wish we could have somehow built my him a hover craft or something!  We have much more invested into this house, than we would have had in that one.

New build can be less expensive than a whole house renovation.  Usually, the only additional charges are potential upgrades and changes to the original plan, which the builder will most likely charge you a “change order” for.  To eliminate any surprises, go through your desired changes with the builder to determine the final cost prior to finalizing a contract.

As you can see there are many more unknowns when it comes to renovating a house.  If you are in a house that you love and it just needs some updating, it may be wise to stay put and live through those updates, versus selling and buying a new home.  Hopefully, these tips have helped you if you are in the house hunting process and trying to decide between a whole house renovation vs buying new.

So what do you think, renovate or build?  What has your experience been with renovating vs buying new or building?  Are you an “old” house or “new” house kind of person?  Why?

 

Still thinking about remodeling?  Here are 10 tips for renovating.