If you are like me, and you’ve ever had a “Love It or List It” moment. This is the blog for you. My family recently went through this dilemma.
We decided we wanted to downsize our house. We also wanted an opportunity to renovate to our taste (we’d renovated everything in our current home, but the main, and then ran out of steam/budget). We would have loved to finish renovating our current house, but we were quoted over 400k to do what we really wanted on our main floor. Yikes!
We decided that money might be better invested in a new home, so we started looking and planned a small main-floor facelift to get the home ready to list and make it more marketable. We established a strict budget and lucked out with our contractor’s availability.
It wouldn’t be the renovation we’d do if we planned to stay another 15 years, but it would still be a refresh. 4 weeks later, wouldn’t you know it, we loved it and decided to put off the move. Why did we make that choice? You’ll find out at the end of the blog.
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The Case For Renovating Your Current Home
There are a few factors that should go into deciding whether to renovate instead of moving:
- Your renovation will add value to your home
- You love your current location
- Your renovation is less expensive than moving
- You have a trusted contractor and a professionally designed plan
- You have very specific tastes and want your renovation customized to you
- You have a place to stay during your renovation
- You are not someone who struggles with decision-making
- You plan to stay long-term in your home
- Housing in your desired location will be difficult to find
- You have a quoted budget to renovate, and at least a 20% cushion for the unexpected
- You have been in your current home for less than 5 years, meaning your home might be worth less than you paid for it, or the cost of moving may consume any equity you have built
The Case For Moving
These are the factors that should steer you towards moving over renovating:
- You are confident you’ll find something you like
- You are downsizing space
- Going to a more desirable location to suit your lifestyle
- You want certainty on your costs, and moving might be more cost-effective in the long run
- The modifications you would have to make would not return a good value when you eventually sell
- The thought of renovating is too stressful, causing you anxiety
- You want something move-in ready
- You can’t stomach living through a renovation
- Renovation costs are increasing, while property values are decreasing
- You’ve been in your current home for 5 or more years
Selling your house in order to downsize? Read these related blog posts for more helpful advice.
- Decluttering Tips For Seniors
- Can Downsizing Actually Save Me Money?
- 5 Signs It’s Finally Time To Downsize
Why We Choose to Renovate
Back to my own situation. We ended up renovating and not moving, really by accident. Well, for us, it came down to many of the reasons in the list in the ” Why Renovate ” section:
Location, location, location.
We love our neighbourhood, our neighbours, the school our son is in, and our lifestyle.
Affordability.
When we priced out our renovations with our contractor, we knew we’d be able to get a facelift for a reasonable budget.
Quality of finishes.
We didn’t anticipate the difference the facelift would make. We knew it would update the house, but we underestimated how much. Even though we compromised on things we would have wanted to make perfect, we were thrilled with the result. We wanted to stay and enjoy it for a while.
We are difficult buyers.
After looking for a few months, we hadn’t quite found the right property. I was reminded that I am my own worst client; after all, it took us 2 years to find our current house.
Certainty.
We have greater certainty about the value our renovation adds to our current house than about the long-term value of the house we’d want in the future, possibly in a different neighborhood. We were considering a bungalow to gut and extend, but it would be riskier and require a big budget.
The payoff from that kind of renovation is harder to gauge. Toronto loves second-floor additions, but a bungalow addition is a rarer commodity.
The bottom line is that there is no one answer to the question “move or improve?” It really will depend on your unique circumstances. If you want to discuss your next chapter, feel free to reach out, and let’s have a conversation.
Ready to sell your home? Reach out to 647.283.2127 or email stuart@stuartnodell.com to start a conversation.
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