Are You Better Off Fixing Your Current Home or Buying a New Home?

By Sandy Flores, Broker
Santa Ana College, Community Services Program

There is neither a specific answer nor one size fits all! There are plenty of considerations to review. First of all, your financial ability and market demands are some of the factors to survey before deciding if it’s wiser to find a new dream home or fix your current home.

home-repairs

Before considering renovating your existing home, take an inventory of your home’s physical current condition, and deal with contractors for renovation costs. Major home renovations bring stress, unexpected complications and budget overruns. Depending on the age of your current home, you may also have to jump through additional hoops to meet newer building code requirements.

Purchasing a new home could actually cost you less monthly than renovating your home depending on its age, and types of renovations you’re considering. If you intend on financing renovation costs, find out how much you will be adding to your existing mortgage, home equity loan or line of credit versus obtaining a new home mortgage.

Keep in mind that even if you renovate your older home, in a future buyer’s eyes, it’s still an older home.

It is a good idea to have a sense of the market activity in your neighborhood to consider trading up or renovating your current home. The main purpose of home renovations is primarily to increase your home’s enjoyment. While you may be able to recoup some or most of the costs during the home’s sale, there are no guarantees.

Sandy Flores, Broker
BRE Lic. # 01122114
Santa Ana College
Community Services Program
www.sandyflores.com

  • PhillipHockington77

    Great article! I think one thing a lot of homeowners forget is that you’ll typically never recover the full 100% on renovation costs when it comes time to sell. Similarly, trends and preferences can change quickly in real estate, so investing too much into alterations might not be as good of an idea as it may seem! Just my two cents though…

  • Absolutely right!