Should I Renovate Or Rebuild, Part 1: What Do You Need?

Deciding to renovate or rebuild is a question we get all the time. I believe it is because most people think building new is out of their reach. Instead, they decide to renovate their home thinking it is a less expensive and easier path to get the home they want and need (and in some cases, I think that is true!). But how can you determine which path is best for you?

In this three part blog series, I will examine the question, Should I Renovate or Rebuild? I’ll cover the important things to consider like examining your needs, the realities of renovating vs. rebuilding, and probably the most important, the financial impact of both. If you are struggling with the decision to renovate your existing home, or build new, I hope you will follow along!

Part 1: What New/Improved Space Do You Need?

When deciding whether to  renovate vs rebuild, the first consideration should be what new or improved space you are looking for in your home. Do you need to improve or update your existing kitchen and bathrooms? Finish off existing basement space or add an outdoor living space? These smaller scale projects can easily be achieved by renovating your current home vs rebuilding, and likely while you are still living in the house.

If you are looking to add more space to your existing home by putting on a large addition or popping the top to add a 2nd level, it might be worth considering a rebuild. So many (so many) of our clients go down this path only to discover the cost of a whole house renovation is close to the cost of building a brand new home. And the money you do invest in a renovation will still leave you with parts of the old home. Old foundation, old wiring and plumbing, and likely portions of the old roof. And let’s talk about energy efficiency. Does it make sense to have part of your home built with the latest and greatest energy efficient materials, only to have the rest of the house stuck in its old ways?

If you are going to spend hundreds of thousands of dollars, you should have the peace of mind that everything is new and covered under a new home warranty. When you renovate your 1950 home, it will always be a 1950 home, no matter how much you renovate it. While I will get more into the dollars and cents in part 3 of this series, it is worth noting here that the investment return on a renovation doesn’t come close to the return on a rebuild. Not. Even. Close.

The bottom line is this…if you are satisfied with the amount of space and layout of your home, but are looking to update some areas, a renovation may make more sense. But if you are looking to add significant space to your home and update the guts of it, tearing down your existing home will not only yield you a better home, but also a better investment.

Next up, the realities of renovating vs. rebuilding! I hope you will join me!

Dream. Build. Live.