In the current real estate landscape, homeowners and prospective buyers are facing a pivotal question: Is it wiser to remodel an existing home or purchase a new one?

The Case for Remodeling

With the inventory of homes available in the Chippewa Valley still very low and interest rates high, remodeling has become a strong option to consider. Can you make some changes to keep your home but make it livable?

It is almost always less expensive to remodel your existing home than build a new one. The per square foot cost is usually about 50% more to build a new home. Plus you don’t have to worry about closing costs or moving expenses. But remodeling comes with additional challenges, and you need to ensure you have the cash available or can line up the financing to afford the project. It’s important to work closely with your contractor to get a solid quote and contract before starting the project.

It is almost always less expensive to remodel your existing home than build a new one.

For most of us a house is more than just a piece of property. You have memories in the home. Maybe you have always hosted Christmas and you can’t imagine doing this anywhere else. Schools are always a huge factor when considering a move as well. Will your children have to move to a new school as well? Are you ready to leave your neighbors behind? Your location is always a top thing to consider in a build/remodel situation.

Additionally, remodeling your home and increase your return on investment. The areas that bring the highest ROI are kitchen remodels, bathroom remodels, patio, or outdoor living spaces and finishing a basement.

Remodeling your home can really give you everything you are looking for without the headache of trying to find something else in an ever-changing market.

The Case for Building

Sometimes there is nothing you can do to make your current home meet the needs of your family or you have your heart set on building a new home.

Building a new home will allow you to fully customize your space. You can select the size and location of the bedrooms. You can decide between an open floor plan or various rooms. You can customize from the bottom up to get exactly what you want. It is a lot easier to build a footprint instead of changing a footprint.

Considering the supply issues in our area, finding the perfect house can be very difficult. Building allows you to move forward in your own time frame instead of waiting for the perfect home to come on the market and hoping that your offers are the chosen one.

Building a new home will allow you to fully customize your space.

Make sure that you allow for enough space in your budget for increasing supply costs, increases if you upgrade finishes, and other unexpected expenses. Everything from hitting limestone on the lot to choosing a different type of countertop can change the price of your build. If building is your goal, you will want to make sure you have some extra money built into your budget for those unexpected expenses. Once the home is done you will feel like you truly have your dream home.

Other things you should consider when deciding if you want to build are the current market conditions and how easy it will be to sell your current home, what type of equity you have in your current home, what is your timeline, and is your family size changing?

Whether you decide to remodel or decide to build you can end up with everything you need and want in a home. With a little research and time spent talking to your financial institution, your builder or remodeler and even a real estate agent you are sure to make the choice that is perfect for you!

To learn more about the Chippewa Valley Home Builders Association, call (715) 835-2526 or visit cvhomebuilders.com.