If you’re considering a major remodel, you may be wondering if it wouldn’t just be cheaper to start from scratch with new construction. And you wouldn’t be alone: Many homeowners in the same position often wonder the same thing. While the ultimate choice depends on your specific situation, we’ve got a list of the three most important factors you should consider in making your decision:
Interest rates: Unless you have ample cash reserves, you’ll probably have to take out a loan for new construction as well as major renovations, and that means you’ll be paying interest. A few years ago when rates were at rock bottom, interest may not have been such a critical factor, but now that rates have risen, you’ll need to take the total cost of a loan into consideration. In most cases, a loan for new construction will be much larger than a loan for a remodel, and interest costs will be much higher.
Scope: Sometimes, your home can look and feel like new with just a few minor renovations; other times, you’ll need a major upgrade to achieve your goals, especially if you need a significant amount of additional space.
Underlying construction: Finally, if you’re current home has shoddy construction or outdated infrastructure like an old heater, leaky plumbing or underpowered electric, starting from scratch might be your best bet. Get some bids from a few contractors and consider the lower selling price you’ll get from a property that’s in need of significant renovations; that can have a bearing, too.
The decision between replacement and remodeling can be applied to specific areas of your home, as well. For instance, upgrading countertops with Granite Transformations Franchise overlays lets you get the look you want without having to demolish existing counters and start from scratch. That’s a great example of when an upgrade makes a lot more sense than completely new construction.
Choosing between renovating and new construction depends a lot on how much you’re willing to undertake and the results you’re trying to achieve. Like any other major decision, taking some time to consider the pros and cons of each can help you make the best decision for your needs.
