Many homeowners blame an expensive housing marketing for their choice to remodel— instead of starting fresh with a newer, or custom-built home.
But shortage in labor and rising prices of materials have contributed to raised remodeling costs, and no matter what state you live in, it may be worth considering the benefits of building or purchasing a new home instead of upgrading your current space.
Let’s look at the downside of remodeling, and why it may be a better investment to purchase a new home:
1. Remodeling almost always costs more than planned.
Remodeling costs nearly always add up to more than initially expected— and this happens for a few reasons.
Firstly, it’s easy as a homeowner to simply underestimate the extent of the costs. Many people go years without needing repairs or home revisions, and when the time comes, they aren’t accustomed to the current market and price tag. Think of how shocked someone who bought gas five years ago would be at today’s prices at the pump.
Remodeling often uncovers further issues as well, which dip further into your wallet. For example, ripping up your flooring to add hardwood may undercover some foundational problems or mold, rot, etc. In order to move forward with your project, you now have another laundry list of repairs that take priority.
You might think that choosing the cheapest labor could help you save, but working with ameteur or unreliable professionals can also drag your project out, in some instances, adding more costs to cover extended labor. This may end up being more expensive and time-consuming than hiring a trusted source from the start.
Custom homes may be costly, but with the right builder, your investment will match what you were originally quoted.
2. Remodeling can drag on for months, or even years.
“The majority of the remodelers on Houzz tell us that once a construction project starts, there is significant delay in the timeline for the completion,” Nino Sitchinava, principal economist at Houzz, shared with CNBC. And it’s not just the 40 million monthly unique users on Houzz. This can happen to any homeowner.
Issues that weren’t apparent present themselves during a remodel. Replacing your wallpaper turns into a scavenger hunt for the source of the water damage that was revealed— and another week is tacked on to the project (not to mention again, costs).
Sometimes these revealed fixes aren’t “optional” either. While renovating your bathroom, you could discover a need for new plumbing. If your house isn’t up to code, you could face issues with a building inspector, or in some cases, even jeopardize your family’s safety.
Even if it’s not something that needs immediate attention, small projects that turn into large endeavors are easy to push off. The overwhelm turns into the neglect, and it becomes easier to shut the door to your space room for a few months (or longer) until you can afford to fix it.
Depending on the floor plan and add-ons, a custom home could be fully designed and constructed within a matter of months. With a trusted builder, you will know your exact timeline and move in when promised.
3. Remodeling often disrupts your current living space.
If you are remodeling a high traffic area, say your kitchen, construction disrupts your everyday lifestyle. A few days ordering take-out while your cabinets are ripped apart is reasonable, but a few months of fast food can start to take its toll on your wallet and your family’s health.
Sure, if you decide to purchase a new home, that’s disruptive too. Waiting for the final build can take months, but at least you can prepare and elect to stay in a functional space while you wait. Remodels take over your current living space. You’re essentially living the chaos verses hiding it behind the curtain.
4. Remodeling restricts your design capabilities.
Consider the old saying “you can put lipstick on a pig, but it’s still a pig.” Of course, we’re not saying your home is like a pigsty, but there are only so many ways you can improve something that already exists.
You can try to modernize an older home, but if the bones are aged and the entire design outdated, it’s never going to look or function quite the same as a new space. Cost plays a huge role here too. As US News pointed out, putting a $100,000 kitchen into a $150,000 home doesn’t really make sense.
Consider your home’s basic structural state. Not all houses can physically support a second story— or if you want to move walls, you may need new support beams or concrete footers.
A new home allows for customization. From the layout to the small details, you are in control of the design.
5. Remodeling limits your ability to “go green” or improve efficiency.
There are certainly things you can do to create an eco-friendly home, like turn off your lights when not present and close your blinds to avoid Florida’s heat, but some older houses will just never be as efficient as newer homes.
With a remodel, you could add better windows or replace outdated appliances, but your walls might not be as well insulated, you may not have the roof space for solar panels or your home’s orientation isn’t ideal for efficient cooling quite like a newer home.
For those who care about the environment and see the long-term return of energy savings, a new home may be your best solution.
It Might be Time to Invest in a New, Custom Home
Remodeling can certainly improve your investment, but a new home will almost certainly hold more market value, allow for greater customization and increase your energy efficiency.
Buying a new home doesn’t have to seem daunting. Regardless of whether you build or buy, you have options no matter what you budget allows.
Download our Cape Coral New Home Buying Guide by clicking on the image below. You’ll discover money saving tips and recommendations on how to choose your own builder, pick the best spots to break ground and more. No pressure to buy, just professional advice.