Like many, you may be looking at your home and thinking, “I am ready for something updated, something fresh, maybe it’s time to just sell this home down and find something new!” Well, let’s give that a second look.
If your home is starting to feel dated and not fitting your lifestyle, the ‘new home’ option may sound tempting (and maybe even easy), but in most cases, adding on to your existing home makes better financial sense considering current high interest rates.
One primary source of equity growth occurs when you increase the property value of your home. By upgrading your home through projects like a remodel or addition, you will be adding to the value of your property. By hiring a professional to ensure the seamless fit for your home, you can boost your home’s market value and see a significant increase to your home’s equity.
Adding on to your existing home also allows you to take advantage of the equity you’ve already built in your home to contribute to the financing of the new project. Selling the home and buying new eliminates all the equity you’ve built. You’re stuck financing the entire cost of the new home plus higher than average interest payments. You’ve put in the sweat equity in your home and the market has added to the value of the home. An addition takes advantage of that.
Here’s just a few other considerations:
- Cost: An addition or remodel may seem costly, but it’s nothing compared to building new.
- Supply shortages are still having dramatic effects on the cost of all goods, including those required to build a brand new home.
- Time: When buying or building new homes, the time required to not only obtain the supplies, but provide the time you want and need to get the home you want within your timeframe can often be more than expected.
- Going the remodel or addition route allows you to continue living in your home during construction versus building new and having to find alternative dwelling solutions.
- Customization: Although you could build a fully customized home, it is far cheaper to approach a fully customized remodel fit to your current home’s infrastructure.
With one of the only in-house millwork shops in the metro, we can create fully customized solutions to any size or restriction issues you may be experiencing in your current home. Contact us today to learn more about how we can create the most functional and efficient space for you and your family!
