It usually happens that when you buy your first home, you were thinking about your current situation. A few short years later, you are feeling cramped and debating between renovating or moving. Most people like their area and do not want to move, but feel that renovating can be costly. In addition, they lack the liquid cash to do so, making selling and moving seem like the better option.

Another consideration is a renovation loan. This can be added to you mortgage payment in small amounts that will add up to less than the cost of purchasing a new home.

Since 1994, the cost of buying a home has increased 3.7% per year*. That is 48.1% over the past 13 years. Moreover, the savings from the real estate agent to sell your current home and purchase a new one can be $10,000 or more**.

Continue to add in your new moving costs of $ 2,000 - 5,000, depending on the distance*, and your renovation seems more and more affordable.

The instant savings of not moving and paying a real estate agent already have saved you over $12,000. Add that to the budget for a home makeover, and you can add in a new level, upgrade your kitchen, finish your basement, or create an en-suite so you have the added privacy you crave.

nrollins@homerenovationguide.com

*Source: Bureau of Economic Analysis
** Figures correct if current home sells for $200,000, and new home cost $245,000 at a commission rate of 2.25% (($200,000.00 x 2.25%) + ($245,000.00 x 2.25%))