Remodel or Move: Is It Better to Renovate or Relocate?

Should I remodel or move? If you’re asking yourself this question, then you’re a homeowner who isn’t happy with their current living situation. You don’t necessarily have to move (it’s not like you’re starting a job in another city or anything), but there is something about your place that you don’t like and moving into a new home sounds like a good idea.

Moving house, however, is a difficult, expensive, and stressful process – so, you may not be really thrilled with the prospect of relocating. Especially considering that you have another good option – remodeling your current house or apartment to turn it into your dream home.

Remodeling, though, is not an easy project either – it involves a lot of hassle, inconvenience, and hard work. And it isn’t cheap at all. Besides, renovating your home may not solve all the issues you have with your living arrangements.

How to decide whether to move or renovate, then? Consider all the relevant factors – from your practical needs and personal preferences to your financial situation and emotional attachments – and find out the pros and cons of both options, so you can make the right choice for you and your family.

Determine Whether Renovating or Relocating Is More Cost-Effective

Moving is expensive. Remodeling isn’t cheap either. To find out which option will make more financial sense for you, you need to consider all potential costs:

Costs of moving to a new home

If you decide to move to a new place, you need to account for the costs of selling your current house or apartment, buying a new property, and moving your belongings to the new home:

Costs of selling your home

If you’re moving to a new home, you will probably want to sell your old one. In such a case, you should not forget about the expenses related to selling a property:

• Home improvement and staging – to get your home ready to list and increase its chances to sell quickly and at a profit, you’ll likely need to do some touch-up (minor repairs, painting, carpet cleaning, adding curb appeal, etc.) – and pay for it. (See also: How to prepare your house for sale before a move);
• Real estate agent commissions;
• Appraisal costs and transfer taxes.

Costs of buying a new home and getting it ready to move in

When purchasing a property, you will not only have to make a down payment on your new home, but will also need to pay for:

• Realtor commissions and closing costs;
• Stamp duty and other legal fees;
• Any necessary repairs and desired upgrades to the new home;
• New furnishings.

Relocation costs

When moving house, you need to budget for:

• Packing supplies or professional packing services;
• Movers’ charges or truck rental fees;
• Moving insurance.

If you’re wondering whether to move house or renovate, you’re most likely thinking about moving locally (if you intend to move out of state, you won’t be even considering renovating instead of relocating). According to the American Moving and Storage Association, the average cost of a local move is about $2,000, so you need to be prepared to spend at least that much on relocation-related expenses. (See also: What is the average cost of moving)

Keep in mind that when moving from one house to another, you will also incur some expenses for transferring utilities, updating documents, etc.

The costs of selling your current home and moving to a new one add up quickly and the final figure can be quite high.

Costs of remodeling

Renovation costs depend on the scale of the project and the specific circumstances in your case. When remodeling your home, you need to account for:

• Permits and architectural plans (if required) – If your home remodel involves making structural changes, adding square footage, or updating the plumbing or electrical system, you will need a permit and will have to submit architectural plans to the city;
• Materials – In order to improve your home, you’re going to need quality materials – and high quality materials come at high prices;
• Labor – You cannot complete a big renovation project on your own – you’re going to need professional help and it will cost you;
• Temporary living accommodations and storage for your items (if needed) – If you’re making a major renovation, you won’t be able to live in your home while the project is under way. You will need to find temporary living accommodations for you and your family and a temporary storage solution for your items – and pay for them.

So, is it cheaper to move or renovate? Research the real estate market in your current area and the area you want to move to, assess how much renovation your current home needs, and calculate your approximate moving costs – you will get a good idea of your likely expenses in both scenarios and will be able to make a financially sound decision.

Think About Your Location

Location is extremely important – oftentimes as important as the home itself. So, when asking yourself “Should I renovate my house or move?”, first you need to decide if you want to stay in your current location or move to another area:

• Is your current location convenient? – Do you live close to your workplace, your kids’ school, and the other places and institutions you need to visit on a regular bases? Are there stores, restaurants, healthcare centers, recreational facilities, cultural venues, entertainment locales, parks, and other amenities you enjoy and services you need within easy reach? Do you live close to family and/or friends?
• Do you like your neighborhood? – Is your neighborhood safe? Is it prosperous (thriving local businesses, new developments, well-kept homes, well maintained streets, etc.)? Are there a lot of green areas? Do you get along with your neighbors?
• Is your current area good for your kids? – Do you live in a desirable school district? Are there activities your kids enjoy nearby? Do your children have friends in the neighborhood?

If the answer to more than a couple of the above questions is “no”, it may be better to sell your current home and move to a more convenient location in a more desirable area. (See also: Moving to a new neighborhood)

If, on the other hand, your current location works for you and you love your neighborhood, moving house doesn’t make much sense – as long as your current home can be remodeled to suit your needs and preferences.

Consider Your Emotional Ties to Your Home and Your Community

In addition to the practical side of things (location & costs), when wondering whether to renovate or move, you need to evaluate your emotional attachments too:

• Your current house may have been in your family for generations, may be full of heirlooms and memories, and you may not want to leave it;
• You may love your home, may have many happy memories in it, and may not want to move out;
• You may like your neighbors and have good rapport with the community, so you may not want to uproot yourself and your family;
• You may have family and/or close friends nearby and may not want to move away from them.

If you’re emotionally attached to your current home (and your location serves your needs), moving house is not a good idea – you should try renovating your place to fix whatever issues you’re having with your living space.

If you don’t like your house or apartment but have put down roots in your area and don’t want to leave it, your best option may be to move to a new home in the same neighborhood – especially if there is a suitable property at an affordable price just around the corner.

Find Out if It Is Feasible to Turn Your Current Home Into Your Dream Home   

So, you don’t really have to move and want to remain in your current area, but your home doesn’t meet your needs or you just don’t like it. In this case, your next step is to determine whether your place can be adapted to your needs and requirements or not – and if remodeling will be worth it.

If only a part of the house needs renovation – the bathroom or kitchen is outdated, you need a home office or your kids need separate bedrooms, etc. – it won’t be very difficult or very expensive to make the required adjustments. You can upgrade the bathroom or kitchen, put up new walls in a large living room to carve an office, turn the attic into a bedroom, etc. The renovation project will take some time, effort, and money, of course, but you’ll be able to reconfigure the layout and functionality of your home to make it perfect for you and your family.

If there aren’t enough rooms in your home, however, or you live in an upstairs apartment but want a yard and a garage, home remodeling won’t fix the problem. Additions may be impossible (if you live in an apartment) and even if they are (your lot is big enough and you get a permit), adding square footage to your home will be very difficult, time-consuming, and expensive.

If you need a bigger home or a different type of home, it may be better to move.

Bonus tip: When deciding whether to renovate or move, think about your future needs too:

• Is your family likely to grow? If yes, you will need a larger space – if your current home is small, investing in it is not a good idea. You’d better move to a bigger place than renovate;
• Do you have teenagers who are likely to move out in a few years? If yes, you may want to downsize after they leave the family nest. In such a case, moving house now will make little sense – you should try to solve the issues you have with your home by renovating it instead. Just be sure to aim for a high return on investment when remodeling, as you’ll probably put your house for sale in the near future;
• Do you expect to start a new job in a new area in the next several years (or to have another reason to relocate anytime soon)? If yes, it will be financially unwise to move now (as you’ll have to move twice within a few years) or to invest into a major remodel (as you won’t have time to enjoy the changes to your home). Try to improve your current place with small upgrades and modifications;
• Are you going to retire soon? If yes, you need to think about where you want to live after retirement and whether your current home can be adapted to meet the needs of an elderly person – and make your decision whether to remodel or move accordingly.

Put your decision into perspective so you can make the right choice – from a financial, practical, and emotional standpoint.

Assess the Complexity of the Moving Process and the Complexity of the Renovation Process

Last but not least, when wondering whether to renovate or relocate, you need to consider the complexity of both processes – and figure out if you can handle all the stress and hassle involved in the option you lean towards.  

The hassle of moving

Moving is not only expensive (as detailed above), but also very difficult and very stressful:

1) Moving is hard – there are too many decisions to make, logistics to organize, and tasks to complete. You need to plan everything in detail and create a good relocation strategy, find good, affordable movers to help you relocate, pack all your earthly possessions, etc. – it takes a lot of research, a lot of careful consideration, a lot of time, and a lot of effort.

Besides, living among pre-packed boxes and without access to more and more of your items (as more and more of them get packed as moving day approaches) is quite inconvenient. Not to mention that you may need to do without your belongings for a week or so in your new home (until your shipment arrives in the event of a long distance move) – and that it will take months until you unpack everything, set up your new home, and start actually feeling at home in it.

2) Moving is risky – your belongings may get lost or damaged during the relocation; your old home may be damaged when your items are being hauled out of it (and your new place may be damaged when your items are being hauled in it); you (or one of your family members, or one of your friends, or one of your movers) may get hurt in the process; you may fall victim to moving scams and end up losing a lot of money; etc.

3) Moving is stressful – When moving to a new place, you have to step out of your comfort zone and brave the unknown. You need to part with dear friends and leave favorite places behind – and then you need to adapt to a new environment and find your place in a new community. It is quite a daunting and disheartening experience.

Must-read: How to overcome the fear of moving

The hassle of renovating

When it comes to home remodeling, the hassle factor is entirely dependent on the scale of the project – the more adjustments you want to make to your home, the more expensive, more difficult, and more stressful the renovation process will be.

A small renovation project

If you want to update just one room or one area of your home, you won’t be able to use that space until the renovation is completed, but you will still be able to live normally in your home. You will have to take everything out from the room or area that is to be renovated, but you won’t need to move out of the house. You may not have home-made meals for a month or so (if you’re upgrading the kitchen) or your children may need to bunk in your bedroom for a while (if you’re remodeling the kids’ rooms), but you will still be able to go about your daily routine without much disruption.

Yet, it will be really inconvenient – there will be people going in and out of your home, it will be noisy, and your living space will be cluttered with the items from the space under renovation.

A big renovation project

If your home needs major renovation, you won’t be able to stay there during the remodeling work. There will be demolition and construction taking place (so it will be dangerous and there will be a lot of noise and a lot of dust and dirt) and you won’t have access to a large portion of your home anyway.

You will have to live somewhere else temporarily – both to be in a more comfortable environment and to give your contractors room to work. And you will have to take most – or all – of your items out of the house and store them someplace safe.

You have options – you can stay with friends or family, or stay at a hotel, or move into a short-term rental – but all of them come with considerable drawbacks (you may feel uncomfortable bothering your family or friends, staying at a hotel will be expensive, and moving into temporary housing will involve almost as much hassle as a full house move).

Putting your items in storage will also be a pain in the neck – not only will it cost you, but you’ll also have to pack your belongings for storage and find a way to transport them to the self-storage facility (or to load them into the portable storage container, if you chose that storage option). And if you’re moving into a short-term rental, you may even need to take some of your household items with you.

Now that you know what to consider when deciding whether to renovate or move, it’s time to learn the pros and cons of both options – and make your choice.

Is It Better to Move or Renovate?

Still not sure how to decide whether to remodel or move? Just take a closer look at the advantages and disadvantages of renovating and relocating listed below:

Pros and cons of moving

When you’re not happy with your living situation, moving to a new place can bring you a number of benefits:

• You’ll have the chance to live in a more convenient location, more desirable area,  better neighborhood, etc.;
• You’ll be able to pick a house that perfectly suits your needs;
• You’ll meet new people and will expand your social circle and your horizons.

The grass, however, is not always greener on the other side. There are some considerable downsides to moving to a new home:

• You’ll have to organize and perform a house move and deal with all the stress and hassle involved in the process – as detailed above;
• You’ll spend your hard-earned money on moving costs instead of investing them in your property;
• If you’re not well familiar with the area you’re moving to, you may later regret buying in that area;
• There may be undisclosed problems with your new house;
• You’ll uproot yourself and your family and will have to adapt to a new environment.

Pros and cons of renovating

Renovating your home will allow you to improve your living environment without forcing you to leave your comfort zone:

• You’ll be able to “customize” your living space so it becomes your dream home;
• You’ll increase the value of your home;
• You’ll remain in the same area and the same community and won’t have to deal with changes, new challenges, and unknown uncertainties;
• There will be no stress for your kids – no need to change schools, part with friends, prove themselves anew, etc.

A home remodel, however, may not solve all your issues and may cause more harm than good:

• You’ll have to put up with a lot of inconvenience and live in a construction zone – or move out of the house (as detailed above);
• You may lose money on your investment, as not all home renovations pay off. If you over-improve for your area, you won’t be able to recoup much of the renovation cost when it comes time to sell;
• You may run into unexpected issues during the remodel (pest damage, rot damage, mold damage, foundation problems, etc.) – that may cause extensive delays in your renovation project and result in considerable extra costs.

Being aware of the benefits and drawbacks of relocating and renovating should make it easier for you to solve the “remodel or move” dilemma.

Should You Renovate or Move?

So, all things considered, is it better to remodel or move? As usual, it depends on your preferences and the specific circumstances in your situation.

As a rule of thumb, moving is your better option when:

1. Your current location doesn’t work for you;
2. You don’t like your neighborhood and/or your neighbors;
3. Your taste is too luxurious for your neighborhood;
4. Your current home can’t be adapted to meet your needs;
5. Investing in your current property doesn’t make financial sense;
6. You have found the perfect home for you at an affordable price.

If you decide to move house, be sure to find the right new home for you and your family and to hire experienced, reliable movers who will ensure your smooth and successful relocation.

Remodeling is the better fitting solution when:

1. You have no reasons to relocate and plan to stay in the area for a long time;
2. Your location is ideal for you and your family;
3. You’re emotionally attached to your home and want to stay put;
4. Your home needs only minor upgrades or adjustments.

If you decide to renovate your home, be careful not to over-improve and give yourself enough wiggle room (in terms of both time and money) for unexpected costs and delays. Make sure you work with experienced, trustworthy contractors and plan for the inevitable inconveniences associated with a renovation project.

So, to move or to renovate? The choice is yours and only you can decide if renovating or relocating will work better for you – what matters is to be happy in your home, whether it’s new or renovated.