What happens when you walk through your existing house and start wondering whether to renovate or buy something new?

Of course, many of these “needs” are actually wants, like maybe an extra bathroom, more closet space, or brand-new countertops. Or it might not be the house itself. Perhaps you want a bigger yard with more outdoor living space, or a giant garden that allows you to enjoy fresh fruits and vegetables all summer long. Whatever your desires, something about your house is no longer working for you. Change is in the air, and it’s got you thinking about the possibilities.

If you love your location and overall structure, you might be able renovate and mould your home into what you know it could be. However, depending on the scope of your project and the current real estate market, it might actually be better to start hunting for a new home. In this post, we’ll help you decide whether to renovate or buy by looking at what each option entails.

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The Case for Renovating

A single question might be the catalyst to help you decide whether renovating or buying a new home is better. Ask yourself this: If money were no object, what would you change? With enough time and a generous enough budget, the only things that you can’t change are the location, lot size, overall structure, and the neighbours. 

If you despise the fact that the house next to you is five inches away, even the most expensive upgrade in the world won’t make a difference. 

Another way to decide is to make a list of everything you can think of that would increase your enjoyment of your home. If that list is as long as your arm, it may be more trouble than it’s worth to try to make your house into something it was never meant to be. On the other hand, if a coat of fresh paint and some simple landscaping is all the transformation you need, renovating could be the best choice.

If selling your existing home is part of your plan, the following resources will help you get the best results:

Explore communities across the GTA: View Oakville Neighbourhoods | View Mississauga Neighbourhoods | View Milton Neighbourhoods | View Burlington Neighbourhoods

The Challenges When You Renovate or Buy

As the housing market becomes more competitive and properties rise in value, many people are holding off on the decision to move. However, nothing happens in a vacuum. As housing values rise, so do the costs of materials and labour. Before deciding on a complete remodel, you will want to carefully calculate these expenses while leaving a buffer for the unexpected. And as you may soon see, home improvements can be addictive! 

The Canada Mortgage and Housing Corporation offers planning tools to help you budget for home improvements.

Once you experience the wonder of one transformed room, other rooms can look outdated by comparison. Before you know it, you’re yearning for an overhaul of your entire house, bathrooms, kitchen bedrooms, and all. Of course, none of this is a problem if you budget accordingly and plan to stay in the home long enough to enjoy all of these upgrades.

Should You Renovate or Buy Instead?

However, you may need to rethink your plans for renovations if you plan to sell your home in the next year or two. In this case, it’s important to ensure that none of your home improvements actually lower the value of your house. It can be difficult to imagine a buyer not loving the new addition or indoor swimming pool, but everyone has different priorities. 

A family with small children might not like the additional risk associated with a pool. Someone with mobility issues may not appreciate unnecessary treks up and down stairs. Renovating before a sale means keeping the buyer in mind so that you can earn the highest return possible from your home. A local real estate agent who is active in your area can help you decide what projects will be worth your investment.

Looking for even more resources to help you locate and purchase your next home? The related reading below will help:

The Case for Buying a New Home

As mentioned earlier, not everything about your house can be easily changed. For example, you can never renovate away loud traffic or a bad view. And if you’re currently in a small condo, you can’t create that backyard paradise you’ve always dreamed of. And you may decide that you don’t want the hassle of living in a construction zone even if your desired changes are possible. 

Sometimes, the choice to renovate or buy comes down to practicality, and it makes more sense to sell your existing home and find one that better suits your needs. Your answers to these questions will help:

  • How attached are you to your existing home? Does the thought of leaving make you feel sad or fill you with excitement?
  • How much will it cost to make the renovations you want in your current house? Contrast this with the price of a new property that is move-in ready.
  • How much would you earn by selling your current home? The real estate market can be unpredictable, so it is wise to be very conservative about your expectations.
  • What features are an absolute must in your new home? What would you like your home to have but are willing to compromise on? A clear picture will help you save time by narrowing down your choices.
  • How long do you intend to stay in your new home? 
Let’s Explore Your Options

The decision to sell your existing home and move on is a big step that feels exhilarating and terrifying at the same time. It can be hard to know where to begin, but expert guidance and a well-thought-out strategy are a great place to start. A local real estate agent specializing in your area can help you determine fact from fiction and make the best possible choice.

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