Before You Spend $150,000 on Your Jup House…

If you like living where you are, moving probably is not your first choice when the kitchen starts feeling dated or the house starts feeling too small. Putting money into the home you already own might seem like the obvious answer.

Before committing to a major renovation, I would compare what it would cost to make your current home work with what it would cost to move into one that already does.

Here is how I would look at it.

What’s the full renovation cost?

The contractor’s quote is the starting point. Depending on the project, you may also need to account for permits, design fees, temporary housing, storage, unexpected work uncovered during construction. Get clear on what’s included before deciding the project fits your budget.

What would moving actually change financially?

Look beyond the difference in purchase price. Compare your current monthly expenses with the estimated mortgage payment, property taxes, insurance, HOA fees at the next home. Include the costs of selling, buying, moving.

A home that costs a little more could be considerably more expensive to own each month.

Will the renovation solve the actual problem?

A new kitchen can make you enjoy your home more. It will not give you a bigger yard, a quieter street, a different location. Before spending the money, ask yourself whether you would be happy staying once the work is finished.

Say you are considering a $150,000 renovation. I would want you to know what your home could sell for today, what a suitable replacement would cost, how much the proposed improvements might contribute to your home’s value.

You do not need to recover every dollar for a renovation to be worthwhile. Enjoying your home has value too. Just separate what you are spending for yourself from what you realistically expect to get back when you sell.

If you are weighing this up, reply with what you would like to change about your home. I am happy to help you compare the options before you start spending.