ROI and Building vs. Remodeling

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You’ve come to a fork in the road: should you build a new home or remodel your existing one? When deciding which direction to take, asking yourself some key questions will help you make the best choice. Consider these factors before moving forward with a remodel or designing an entirely new custom home.

Will you need to make large repairs in the foreseeable future?

While a remodel costs less up front than a new home, be sure to consider other large expenses that may be on the horizon. Staying in an older home means you’ll need to replace large ticket items like your roof, water heater, windows, and flooring sooner than if you built a new home. If you’ve already accounted for these expenses in your remodeling project, then you’re in good shape. If you hadn’t yet considered these updates, then be sure to include them in your budget as you assess the potential return on investment (ROI) of your project.

Are the changes I want to make reasonable for my home?

If you live in a neighborhood with mostly two-bedroom ranch-style homes, adding a second floor with three extra bedrooms may be excessive. Likewise, putting a large commercial-grade kitchen into an 800-square foot home would be a disproportionate addition.

While there’s no reason you shouldn’t have a two-story home with three additional bedrooms and a spacious kitchen, you will see a better return on your investment if it’s in a neighborhood with comparable homes. Neighborhoods tend to feature homes in the same size, style, and price range. If your remodel is too extravagant, it may elevate your home’s value above your neighborhood’s price range. Essentially, you’ll put a cap on the value of your home by positioning it in an area that won’t support its upgraded value.

Is the remodel I want feasible for my home?

You may have visions of a luxurious master bathroom, a walk-out basement, or a dreamy sunroom, but if your existing home can’t accommodate those additions, then you’ll need to realize your vision elsewhere. Impossible is impossible, no matter how much money you’re willing to spend. Sometimes, the only way to accomplish everything on your wish list is to start from scratch.

What is more valuable to me: time or comfort?

Regardless of your decision, the cost of your project will be more than financial. Building a new home takes considerable time, and remodeling requires a sacrifice of your comfort. Be sure you understand how long your project is likely to take and how much disruption you can expect to your daily routines before you make a final decision.

If you’re ready to start building the home of your dreams, contact Homes by Brill. As a leading custom home builder in the Des Moines area, the Homes by Brill team will walk you through each step of the home building process. In the end, you’ll have a home you love and an investment you can be proud of. Schedule your consultation today!