By Nate Porter – May 15, 2014
Often when I have my first meeting with potential customers they ask me about the benefits of remodeling their existing home instead of building a new one. I tell them to consider not only the cost, but the intangibles as well, energy efficiency, the state of their neighborhood, their personal financial situation, their short and medium term needs and of course – interest rates! I always tell people to take a critical look at what they want before deciding on a path.
After living in home for so long, it gets tiring looking at all the same old kitchen countertops, bathroom fixtures and small rooms. Your house doesn’t fit your needs, and you can no longer deny it. Time to make a hard decision,should you buy new or remodel the house? The typical American family makes this decision several times in life. For many people moving is the simpler, less expensive and certainly less stressful option.
At first, it might seem like there are cost advantages to staying put and renovating, but a study by the Wall Street Journal done in the late 1990’s found that the price of keeping a typical home up to current standards over a 30-year period is almost four times the homes purchase price. The money spent on a remodel really isn’t an investment, it’s just an expense, and expenses for a remodeling project are frequently more than expected. You might not get your ‘investment’ back. The key to any renovation project is planning it just like a new building project. Here are some key points to remember:
- Create a written plan for the project in order to list your priorities and keep costs in line.
- Establish your own project budget before talking to contractors
- Research carefully potential remodeling firms and contractors you might use
- Make sure your renovations are energy efficient by asking potential contractors if they build to Energy Star standards
Treating a renovation project like a new build may seem a lot of work, but it will save you money in the long run.
Then, there are some things that you cannot renovate away; your neighborhood, your location and the schools near your present home. If you always wanted to live at the top of a hill, there’s nothing you can do about your flat street. By looking at other areas, you can find that ideal home with the same new elements that you wanted in your remodel.
If you decide to look for a new home, should you build or should you buy an existing property? Reviewing the pros and cons of new homes versus resale homes is something you should consider when buying a house. A resale home might offer more charm, and a new home might have more space, but which one could potentially save you money when it comes to energy efficiency?
In early 2013, the U.S. Energy Information Administration (EIA) posted an article stating that homes built between 2000 and 2009 were 30 percent larger than homes built before that time; however, newer homes only consumed 2 percent more energy. How can that number be so low? Several factors play into the small increase, such as more efficient heating equipment, building shells built to stricter energy codes, geography and the integration of energy efficient appliances.
New homes are often sold with energy-saving appliances, windows and insulation. Resale houses may or may not come with these features and might come with some repair work to do. Replacing a roof or water heater soon after moving in could be big, expensive surprises. It’s best to weigh the pros and cons of both choices and take into consideration which option could potentially best suit your needs.
If you are considering a remodel or a new home, talk to professionals who can assist you, from your real estate agent to potential builder partners. At Porter Homes, we provide our customers with a team of professionals to guide them through the process. Our staff is always available to answer your questions whether you choose us as a partner or not. We believe that an informed consumer is better for our entire industry!