It may seem like a daunting task to sell your home rather than renovate—the process can look tedious, and emotional attachments to your home and memories can make the decision even harder. However, there are many advantages to selling that homeowners often overlook or haven’t fully considered.
1. Home Renovation Actually Costs More Than You Think
If your home has been sitting for quite some time, purchasing a new home could actually cost less on a monthly basis than renovating your current one. Be sure to factor in the amount of equity you already have and the scope of renovations you’re planning.
According to Rob Caulfield, Director of Archicentre—the building design and advisory service of the Australian Institute of Architects—renovating more than 50% of a home requires compliance with current building regulations. This may involve upgrading wiring, plumbing, insulation, and energy ratings, which can significantly increase costs.
You’ll also need to account for hiring professionals and setting aside a contingency fund for cost and time overruns. If you’re financing renovations, it’s wise to use a mortgage calculator to compare your existing mortgage plus renovation or home equity loan against the cost of purchasing a new home.
2. Renovations Rarely Offer Full Returns
No matter how well-planned your renovation is, it’s important to remember that no project delivers a 100% return on investment. Based on a recent study, homeowners typically recoup only 64.4% of a remodeling project’s cost when selling.
If selling is part of your long-term plan, prioritize essential repairs and updates—such as the roof, kitchen, and plumbing—rather than extensive cosmetic upgrades.
3. A New Environment Can Offer a Fresh Start
Living in the same home for many years can sometimes feel draining, even if it’s familiar and comfortable. Moving to a new home can provide a renewed sense of energy and perspective, simply by changing your surroundings.
Selling and buying a new home also allows you to better accommodate both your current and future needs—without enduring the disruption and stress of renovations.
4. Renovating Can Be a Major Hassle
Renovations require time, coordination, and the ability to manage contractors and budgets effectively. If this isn’t something you’ve handled before, you may encounter unexpected delays, budget overruns, and complications that add stress to the process.
5. You Might Find Your Dream Home
With the help of an experienced real estate agent, selling your home could open the door to properties that better suit your family’s needs and lifestyle. You may even find your dream home—without the expense and inconvenience of renovating.
While renovating can be a good option in some situations, it’s worth carefully weighing the benefits of selling. Speaking with a real estate professional can help you make the most informed decision.
