Move or Improve? You Decide

Your house doesn't meet your needs anymore. Perhaps you've run out of space. Maybe your house's appliances or style are out of date. Whatever your reasons, you've decided you need a change. But do you renovate the home you've got to better suit you and your family? Or do you look for a new one that already does? The answer depends on your needs, your financial situation, and your tolerance for the stresses involved in moving and renovation.

Your Needs

One of the benefits of renovation is that you can all but guarantee you'll get what you need—within reason. Does your kitchen need updating? Do you need an extra bathroom or bedroom? Those types of renovations might be easier than buying a house in your neighborhood, at your price point, that has everything you need.

Getting what you want with a new home depends on what's available in the market. You might have to make compromises in price, features, or area. At the same time, the market can provide many more options with a new home than could ever be available with a simple renovation.

Ultimately, the choice of what, when, and where to buy is always yours. The decision on what to renovate, however, is generally static. You'll still be limited by your finances, equity, and your home.

Finances

In most cases, paying for a renovation will be easier than buying a house. While renovations aren't cheap, they're still less than buying a new home, and they're easier to pay for. If you've lived in your home for a while, chances are it has accrued equity. Equity is the difference between the current value of the house and the balance left on your mortgage. Typically, homeowners use home equity loans to pay for renovations because they're easy to secure; Your home is the collateral securing the loan.

If your current house has little to no equity, it probably makes more financial sense to buy a new home than renovate. Without equity, you'd likely have to take out a personal loan which could be harder to secure and more expensive to payback. Also, you might be better off buying a house if the cost of your current mortgage plus a home equity loan would exceed or match a new mortgage.

Stress

Neither renovation nor buying a house are stress-free. The renovation will likely require you to live, at least part-time, in a construction zone for weeks or more. It'll be loud, there will be strange people in your home, and it'll be messy. You might also have to endure interruptions in power, plumbing, and the internet. 

Moving has its stresses, too. Of course, there's the actual process of packing and moving. There's also the emotional toll of leaving a home, a neighborhood, and possibly friends and family. There's also the stress of selling the old house, which could persist well past the time you've moved into the new one.

Deciding to renovate your current home or to buy a new one isn't easy. However, if you understand what your current and future needs are, you can make a decision that will make you happy.

• Small Home Projects Worth Finishing Before the End of the Year
• How to Spot Areas of Your Home That Need Better Ventilation
• Home Projects That Can Improve Everyday Function
• Simple Ways to Make Your Home More Comfortable Year-Round
• Easy Ways to Make Darker Rooms Feel Brighter
• Making an Entryway Work Better for Everyday Life
• When to Repair, Replace, or Leave a Home Feature Alone
• Ways to Repurpose an Underused Room
• Late-Summer Home Projects That Can Lower Energy Use This Fall
• Ways to Make Small Bathrooms Feel Larger

• Weekend Projects That Improve Your Home's Function & Appeal
• How to Improve Your Home's Outdoor Lighting

• Deciding Whether You're Ready to Buy a Home
• Understanding Home Insurance Before You Buy
• Looking Beyond the Mortgage: Long-Term Costs of Owning a Home
• How to Compare Homes With Different Strengths and Tradeoffs
• Making Sense of Seasonal Changes in the Housing Market
• How to Evaluate a Home's Maintenance History
• What Buyers Should Know About Property Disclosure Forms
• How to Compare Mortgage Options Like a Pro
• What Buyers Should Know About Neighborhood Development Plans
• Can This Home Adapt to Your Future Needs?

• What Buyers Should Know About Property Boundaries
• Evaluating Storage Space When Touring Homes

• When to Rethink Your Selling Strategy
• Small Details That Can Make a Home More Appealing to Buyers
• How Timing Can Affect a Seller's Negotiation Strategy
• Keeping Buyers Interested After the First Showing
• Getting Your Home Ready for an Autumn Listing
• How to Keep a Home Sale Moving After You Accept an Offer
• What Should Stay With the House When You Sell?
• What to Do When Your Home Has Been on the Market Longer Than Expected
• What Fall Buyers Notice During a Home Tour
• Setting a Price That Attracts Serious Buyers

• How to Deal With Low Offers and Keep Your Momentum
• What to Repair Before Listing Your House