When factoring in all of the expenditures of moving, some folks decide that it may be easier to renovate their existing home rather than starting the search for a new one.
Starter homes were never meant for long-term living, but rather than relocating some families have decided to add on to their formerly cramped homes with additions, or even starting from scratch on the same plot of land. These options for upgrading are not without their flaws, and before starting a costly renovation it’s important to look at the pros and cons of relocating and renovating.
Buying a Home.
Buying a new home isn’t always cut and dry. If you can expect to sell your current home for $400,000 dollars to upgrade to a $700,000 home, the upgrade fee will be more than an easy $300,000.
You will need to factor in the percentage that is paid out to the realtors as well as the land transfer fees. After everything you will have legal fees that need to be paid out and the small expenditures along the way like repairs to your existing home and staging fees. Your cost to upgrade can climb almost $50,000 based on what city you live in.
Building from Scratch.
Demolishing your current home and building something that is customized to your tastes and needs is an attractive idea. But remember, you’ll be relying on builders and contractors to stay on track and in the mean time you’ll need to find a place to live and store your furniture.
A quality contractor can build a house with all of the amenities for approximately $300 per square foot for a 2400 square foot home. But again you’ll need to factor in architectural fees, landscaping, hydro, plumbing, labour, and materials. Going for high-end finishings can add a whopping price tag to your end game and end up costing almost $790,000.
Building an Addition.
Building an addition has some of the same positives as building from scratch, but again many of the same negative factors, like finding alternative living arrangements and dealing with contractors. You could do an addition that would double your floor space for half the price of building from scratch.
In the end, packing up your things and moving to a new house is the least expensive option, and building from scratch is the most expensive. Working with the right team of realtors, you can find the right home for your family needs within your budget and price range. However, don’t let this turn you off renovating. The right upgrades can add tons of value to your next home.