Ask Our Agent with Compass Real Estate Agent Karin Diana, Founder of The Home Collective
Grab Diana’s free worksheet that lays out the pros and cons with numbers. Email her Karin.Diana@compass.com.
When you’ve outgrown your home, or outgrown the way it works for you, you face one of the toughest homeowner decisions: should you invest in a renovation or start fresh with a new house? Compass real estate agent Karin Diana says the answer isn’t simple, but with the right approach, you can make the choice that best serves your family and your finances.
Get Clear on What’s Not Working
The first step is understanding what you want to change. Is it more square footage, a better flow, or a modern kitchen? Or is the bigger issue location? Maybe you’re on a busy street, too far from schools, or just ready for a new neighborhood?
“Determining what you’d like to see change in your current housing situation is critical,” Diana explains. “If it’s the house itself, renovations might solve your problems. If it’s the location, then moving may be the only solution.”
Arm Yourself With the Facts
Dreaming of open-concept living or a finished basement is one thing. Living through months of disruption is another. Diana emphasizes the importance of gathering real information before making a decision.
That means:
- Talk to contractors and architects. Get quotes and timelines for the work you’re considering.
- Understand the emotional toll. Renovations aren’t just about money. They come with dust, delays, and displacement. “I’m renovating my kitchen right now,” Diana shares. “I can literally taste the dust when I walk in the door. It’s a lot to live through.”
- Have honest family conversations. How will your household handle the stress of a long project?
Weigh the Cost of Moving
It’s easy to assume selling and buying is simpler, but moving has its own expenses and headaches. Beyond the emotional stress of packing and transitioning, there are very real financial considerations:
- Broker commissions
- Transfer taxes
- Attorney fees
- Inspections and repairs
Then there’s the most significant factor: your mortgage rate. “If you’re locked in at 2.5% and now considering buying at over 6%, your monthly payment is going to look very different,” Diana says.
Think About the Long-Term
Once you’ve done the math, consider where you see yourself in five to ten years.
Renovate if:
- You love your neighborhood.
- The updates will meet your needs without overpricing your home.
- You have the budget and reserves to manage the project.
Sell if:
- Location is the bigger issue.
- You’re craving a new chapter or lifestyle change.
- Financially, moving makes more sense than renovating.
Bottom Line
Choosing between renovating and selling isn’t just a financial decision…it’s a lifestyle decision. “The best approach is to arm yourself with as much information as possible, then weigh both the financial and emotional costs,” says Diana. “Lean on your realtor to help you clarify which path will truly benefit your family the most.”
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