There’s a good reason why reality TV shows like Love It Or List It tend to score such high ratings on home-focused channels like HGTV — and believe it or not, it’s got nothing to do with the compelling script-writing or character development.
The real reason is that this particular predicament for homeowners is very real, with many homeowners currently asking themselves the same question. Should they renovate or just buy new?
Whether you’ve recently found yourself wondering whether it makes more sense for you to renovate or buy a new home, or you just want more information in case you find yourself in the same scenario, this guide is for you.
Assessing Your Home’s Deficiencies
The first question you need to ask yourself is, what exactly is wrong with your home right now? What do you not love? What do you wish you could change?
Understanding your home’s deficiencies and your emotional dissatisfactions with it ultimately represent the root cause of your dilemma. While those might feel clear in thought, taking the time to analytically assess them can have a drastic influence on your final decision.
We recommend you set aside an hour or two to sit down with a pen and paper — and if you own your home with your partner, them too — and write down everything you dislike about where you live. Consider everything between location, size, access to local amenities, style, finishings, parking spaces — the lot.
At this juncture, it can literally pay to be honest, so be as superficial or objective as you want. At the end of the day, this will help you realize that your problems might be as simple to fix as repainting your walls or updating your kitchen cabinets.
If you’re swaying towards selling your current home to fund the purchase of your next home, you’ll need to know what your property’s market value is first. Find out by booking a Free Home Evaluation here.
When It’s Worth Renovating
If at the end of your heart-to-heart with your home you realize that most of your home’s shortcomings are largely superficial and can be fixed with some effort and investment, then it’s probably a good idea to renovate — at least first.
We all get upset at our homes from time to time, that’s completely normal, and even things as small as not having enough storage space in your kitchen or the impractical layout of your bathroom can eventually drive you crazy. But it’s always well worth it to remember these things can be fixed.
Whether your home requires a full-fledged renovation or just some TLC in a few key areas, the important thing is you’ve realized your home’s deficiencies are mendable. From there, it becomes a matter of calling contractors and tradespeople to help rather than your Realtor® — though they should be able to offer you advice and help you facilitate your renovation too.
Even if you’re still not fully convinced you don’t want to eventually sell your home, it’s worth it to consider your home’s resale value too. Honestly ask yourself — has your home realistically appreciated in value since you first moved in?
Not every micro-market will see their homes automatically appreciate in value over time. If you haven’t invested enough in repairs, renovations, and upgrades into your home since you first bought it, there’s a good chance you won’t maximize its ROI when selling anyway.
Taking on home renovations alone can be daunting even for the handiest of homeowners. If you’re looking for some help, lean on our list of The Top 4 Tradespeople Every Homeowner Should Know. We also have some resources on the pros and cons of renovating vs. selling your home as-is here.
When It’s Better To Buy
On the other hand, if your frustrations with your home have more to do with things a renovation can’t change — like its location, your neighbourhood’s depreciating value, access to local amenities, size, parking space, etc. — then it’s more likely you’re in need of a move.
As we stated above, this doesn’t mean you shouldn’t still renovate. In fact, in order to receive the best value for your home from your sale, addressing any maintenance issues or problem areas with a repair or renovation should be high up on your list of to-dos before listing.
However, you can drive yourself insane trying to complete revamp after revamp to bring your home up to a standard it’s never going to reach. At this point, it’s usually the best course of action to contact your Realtor® for advice on next steps.
From there, your Realtor® will meet with you, assess your home’s current market value, and advise you on the steps you can take to earn the most amount of money for your property. They’ll also offer you their insider insight on your local market’s current conditions, how you should approach the market, and provide you with a tactical pricing strategy.
This way, you’ll ensure you’ve done everything you can to earn as much money from your sale and you’re able to enter the market for a new home with as much stopping power behind you as possible. And of course, your Realtor® will be able to help you find a new home that is much more suitable to your future needs.
On the hunt for a new home? There are more ways than one to find the perfect place for you — use our search and tailored listings tools below to make sure you find the right match.
The Pros And Cons Of Each
Unfortunately, real estate can be fickle, and choosing between whether you should renovate or buy a new home can be more complex than simply assessing your needs.
If you choose to renovate, you’ll have a home much more suitable to your current wants and needs, but depending on what those are, it can cost quite a bit of money — not to mention the time and potentially stress, too.
If you choose to buy a new home, you’ll (hopefully) be making a smart long-term investment in a property with better appreciation value. However, it could cost you much more than a renovation up-front and you also have to consider whether you should buy a new home first or sell your current property before buying a new one, which largely depends on the state of the current market. Needless to say, this can be highly stressful, especially if you’ve got a few children at home.
If you’ve decided it’s best to move homes, let us take care of selling your current property for you. Read about our approach to selling your home and then book your personal seller’s appointment when you’re ready to get started selling.
Whichever decision you ultimately take, the best way to approach the situation is to listen to the advice of those who are most closely in tune with your local real estate market — your Realtor®. When it comes to real estate, timing is everything, and making the right move at the wrong time is still the wrong move.
Listen to your Realtor’s® professional opinion and let it influence your final decision, but at the end of the day, everything comes down to what will make you most happy. As we illustrated above, there are pros and cons to each decision.
Have you made up your mind it’s time to move? Let us help you find a property that ticks all of the boxes on your new home checklist. Get more information about our personalized home buying process below, then book your no-obligation buyer’s consultation to get started.
