If you are trying to decide whether to renovate your existing home or to build a new one instead, it cannot be easy to figure out which is the right choice. Many factors can be involved in the decision, and several important things must be considered. Your preference will impact the scope of the project, your budget, and the outcome you will achieve. Here are four major factors that might inform your decision.

The Size You Need

If you have a growing family and are beginning to feel cramped in your current home, adding more space by adding rooms and removing walls is possible. However, the amount of space you can add will be constricted by the layout of your current home and the lot it is on.

Sometimes, people can get the needed room by finishing a basement or converting a garage into additional living space. However, building additional rooms in a new structure added to your home might interfere with the aesthetics of how it looks and might be more costly than you realize. If you instead choose to build a new home, you can plan it to be large enough to meet your family's needs while anticipating any additional space you might require.

The Design You Envision

Your home's aesthetics are important for your family and those visiting you. How your home is designed can communicate comfort, warmth, or minimalist efficiency. The design of your home should communicate who you are and what you prioritize. It should also add to your home's curb appeal and help you secure a good return on investment if you ever decide to sell.

When you decide to start fresh with new construction, you will have more control over the function and appearance of your home. You can work closely with the architects and designers to ensure that the design will match what you envision precisely, including everything from your home's layout to small but important design details that communicate who you are.

If you decide to renovate your existing home, its design will ultimately be limited by the existing structure. You can add to the house, move some walls, and change some design details, but you won't be able to create the vision you have from the ground up.

However, if you have a historic home, its unique charm will be challenging to match with a newly constructed home. The character of your home can be brought to life and featured in a new way through a smart renovation project, creating a fully functional and beautiful space for you and your family to enjoy.

Whether your home is historic or outdated, renovations can bring it up-to-date and make everything feel fresh. Ultimately, you will need to consider the design you want to achieve and whether it makes more sense to renovate your current home or begin new to achieve the desired results. Another way to enhance your existing home is to build a deck, giving you more space and adding value to the property at considerably lower costs than renovating the interior.

Cost of Renovating vs. Building New and Your Budget

In most cases, choosing to build a new home will be more expensive than renovating your existing space. According to Forbes, the average cost of renovating a home is $100 per square foot, while the average cost of building a new home is $150 per square foot.[1] New home construction often involves a much larger scope and degree of complexity than a home renovation. 

Depending on the extent of the renovations you might need, renovating your home could quickly become increasingly expensive. In some cases, problems are discovered mid-project that must be corrected and can add significantly to the overall project cost. An extensive renovation might also require you to bring different aspects of your home up to code, such as the plumbing and electrical systems.

Another important consideration when starting a renovation project is ensuring compliance with local regulations and building codes. For certain renovation projects, such as major structural modifications or significant additions, jurisdictions may require a home improvement bond to protect homeowners against potential financial losses.

Whether you decide to build a new home or renovate your existing property, you will want to discuss your budget with a prospective contractor and ensure that you include detailed information about the costs of all supplies and labor and how payments will be handled in your contract. 

The Project's Duration

How long the project will take is another important consideration when deciding whether to build a new home or renovate your existing house. How long the project might take will depend on the project's size and scope, your current home's condition if you decide to renovate, and whether you will need to continue living in the home during the project or will need to live elsewhere instead.

If you build a new home, you can anticipate the project taking more time than renovating your existing home in most cases. This is because of all the preparation that must be completed, such as planning, architectural design, installing plumbing and electrical lines, and site preparation for the structure before construction begins.

The length of a home renovation will also depend on the extent and type of renovations that will be completed. However, renovating an existing home is often faster than building a new one since you won't need to build it from the ground up. You can instead integrate the existing elements into the renovations so that the team won't need to do as much work to complete the project.

However, if you must stay somewhere else for months while the project is being completed, that should also be a consideration. Extensive renovations can take a long time and make it impossible for your family to continue living in the space while the work is being completed. If your home is historical, the time it might take can also be significantly longer if toxic materials such as asbestos or black mold are discovered that must be mitigated or removed.

Building a new home versus renovating your existing house is a big decision. It's a good idea to consider your budget carefully. The design features you want and the outcome you envision before you decide. Your contractor and design team can help you think about the most important factors that could affect your decision.

Author: Andy Kurtz

Cover image by I Do Nothing But Love on Unsplash