Unless you have a clear preference one way or the other, determining whether you need a custom built home or a home remodel can be a tough decision. There are plenty of advantages to both, but after an analysis, you may discover one is clearly better than the other based on your specific situation.
Even if they don’t affect you directly, they do the majority of homebuyers who need a mortgage to buy a home. When interest rates are high, fewer people qualify for home loans. Home renovations tend to increase when mortgage rates are high because there are fewer people looking for homes.
The local jurisdiction, your lender and the homeowner’s association (HOA) all have a say in whether it’s better for you to renovate or build a new home.
- The city. You’ll have to find out from your local jurisdiction if there are limits on what they’ll allow for home additions and structural changes to your existing home. They will also have to approve your plans before they will issue a building permit. They also control whether you can tear your existing home down and put up a new custom built home.
- The bank. Your lender may not let you tear your existing home down to build a new one on the lot. The bank loses its collateral and may force you to sell or remodel to achieve the home you want.
- The HOA. Many HOAs have a long list of requirements and restrictions that make home renovations possible, but challenging and time-consuming. They may not even consider a teardown and a new build on the same lot.
After you understand what’s possible and the degree of difficulty each option poses, look at the advantages of both renovating and a custom built home.
A new home will be exactly as you want it and have up-to-date wiring that makes living in the 21st century easier. It will be energy efficient, and nearly everything in it will have warranties for parts and labor. You can make the home as unique to you as you like with all the design features you need and want.
As a general rule, it doesn’t take nearly as long or cost as much to renovate a home as it does to build a new one. You might be able to stay in your home while the project progresses. You’ll be able to update your appliances and wiring to today’s standards and upgrade the plumbing. Depending on the scope of the remodel or home addition, you may not need to alter the landscaping.
Deciding between a custom built home and a home renovation might depend on market forces or legal considerations. Both options result in the home you want, which makes all the effort worthwhile and rewarding. Alair Homes is here to help you through every stage of this project. Contact us to discuss your goals during a complimentary, no obligation consultation.