Ever heard the phrase “penny wise and pound foolish”? There are many homeowners opting to remodel, rather than moving to a home that genuinely fits their evolving lifestyle needs. Pretty much every episode of HGTV’s “Love It or List It” results in sentimental homeowners choosing to remain where they are in their newly remodeled home, with its walk-in closet-turned-nursery, or new closet organizers resolving storage issues while the cramped house remains the same square footage, rather than moving to the newer, more spacious and well-laid-out home that clearly is better suited to their style of living.
Aside from the hassle of living without a kitchen or bathroom for an extended period of time, the real cost of staying put and remodeling a home is sometimes penny wise and pound foolish, versus buying new. Surprisingly, despite a better economy and rising home prices, the current trend is to “hunker down” and stay put, according to a recent article Wall Street Journal, as opposed to finding larger living space or moving to a location with a better career opportunity. This trend is affecting home buying inventory, which makes buying new construction more feasible than finding a used home.
The 2017 national average for a home remodeling project is $38,793, with the typical range for remodeling costs is $17,018 to $62,744.1 Here’s a breakdown of remodeling costs, by project2:
- Exterior paint job: $1,500 to $5,500
- Interior paint job: $1,100 to $4,500
- New roof: $50 to $150 per shingle square
- Window replacements: $100 to $300 per window
- New bedroom: $260 to $1,800
- Closet Redo: $1,000 to $2,200
- New living room: $350 to $1,650
- Built-in shelving: $290 to $1,300
- New carpeting: $17 to $51 per square foot
- New bathroom: $3,000 to $12,000
- New kitchen: $1,500 to $54,000
- Central air: $2,000 to $9,000
- Driveway redo: $.50 to $50 per square foot
Surprisingly, purchasing a new home can cost the same as purchasing a previously owned home, yet the new home is more satisfying, because it is entirely your design. Even better, the energy efficiency of a new home can save you up to 42% in energy costs. These energy savings add up due to better Low E windows, sealed ductwork and plywood sheathing.
If you’re weighing the pros and cons of staying where you are versus buying new, here are some ideas to consider:
- Is there enough land to add room additions to my home as my family grows?
- Will an addition look architecturally pleasing, or visually disrupting?
- Is the yard and landscaping too costly and difficult to manage?
- Is the location of my current home a strong reason to stay?
- Is my work commute too long?
- Is there a better school district for my children?
- Is this home too much for me, as I am ready to downsize at this point in my life?
- Are my energy costs exceeding the average for my area?
- Is the current layout of my home in need of a complete redesign to satisfy my family’s needs?
When you are ready to discuss new home design options, please remember Jones Company. Our Online Concierge, Jenn Chapman, can help walk you through your new home journey and narrow the options of neighborhoods and floor plans to match your family’s living style. You can call Jenn at 615-405-6425 or e-mail her at [email protected] with your questions, and you’ll be well on your way!
1 Source: HomeAdvisor.com
2 Source: Choice Home Warranty