Remodeling vs Building New: Top Factors to Consider
Wrestling with the decision to remodel your current home or build a new one? You’re not alone. This decision is one that many homeowners face, especially when they have a significant amount of equity built up in the home they currently own. Both options have their own advantages and challenges, but understanding the differences will help you make an informed decision. Here are the top factors to consider when making the decision between remodeling or building a new home.
Cost
Cost is a main concern for most homeowners when deciding between remodeling or starting a new build. Your home is one of your most valuable investments, so this is a crucial factor. Home equity loans can help fund remodeling costs, but equity in your current home can also be put toward a new construction loan. Here are some top cost considerations for each.
Remodeling
Depending on your existing home’s age and current condition, remodeling may be the cheaper option. However, costs can quickly escalate if unexpected issues arise, such as structural damage or outdated components that need replacing. Remodeling is typically more budget-friendly for smaller projects like updating a kitchen or bathroom, but extensive renovations or upgrades may narrow the cost gap between remodeling and new construction.
Building New
While building a new home is generally more expensive upfront, it offers the advantage of starting with a clean slate. You’re able to design a home tailored to your every specification and preference, which may reduce the need for costly changes or upgrades. New construction also offers more energy-efficient materials, appliances, and systems, potentially offering even more savings in utility bills over time.
Customization and Design
Both remodeling and building new offer homeowners options for customization and design. Remodeling typically has more boundaries surrounding creative license than with a new build, but depending on your home’s location, size, and layout, this may not make a significant difference. Interior customization and design are usually more attainable for remodels, but significant exterior changes may be achievable for some homes.
Remodeling
Remodeling allows you to update specific areas of your home while retaining its original character. This can be an ideal option for homeowners who love their home’s location, layout, or historical features while wanting to modernize or expand. But remodeling can be limiting if the existing structure doesn’t allow for the changes you envision, or if significant modifications would compromise your home’s integrity.
Building New
Building new offers complete control over the design and layout of your custom home. You can create a home that meets your current and future needs without being constrained by an existing design. This is particularly beneficial if you have specific needs or requirements, like accommodating aging family members or implementing energy efficiency from the ground up.
Time and Convenience
Both remodeling and new builds take time, with new builds usually being the slower of the two options. However, if complications arise during remodels, the estimated time frame can be extended, all while losing access to certain areas of your home. New builds won’t affect your daily routines, which is a major consideration for families or work-from-home employees.
Remodeling
This can be a faster process than building a new home, especially if only minor changes are being made. But, living in a home during renovations can be inconvenient, stressful, and impractical. The timeline for major remodeling can be unpredictable due to unforeseen issues, material delays, or contractor schedules. This is why it’s important to work with an reputable remodeling contractor when time is of the essence.
Building New
While building a new home generally takes longer than remodeling an existing one, the process is more predictable when you work with an experienced custom home builder with a well-planned design. Once construction begins, you won’t have to deal with the disruptions of living among a construction zone, which is paramount for families with small children, or those who work from home.
Location and Land Availability
As they say in real estate: location, location, location. With your home being a major investment, it’s crucial that it’s in the right place. If you’re already in a prime location, remodeling may be the most practical choice. Looking for land to build a custom home on may pose more of a challenge, but it may pay off significantly in the long run.
Remodeling
If you already reside in an ideal location, remodeling allows you to stay within your desired neighborhood and saves you the process of moving. This is important if you love your current community, schools, or proximity to work. However, if the lot is small or has restrictions, your remodeling options may be limited.
Building New
Finding a suitable lot for new construction can pose a challenge, especially in densely populated areas. However, if you’re willing to move, building new offers the opportunity to select a location that may better suit your needs. Whether that’s more space, better views, or proximity to amenities, finding a new lot can have an effect on much more than just your home’s structure.
Energy Efficiency and Sustainability
True, sustainable energy efficiency can’t always be achieved in older homes, making a new build the only option for this endeavor. While remodeling can oftentimes improve the energy efficiency of a home, it’s usually more cost-effective to build a new, energy-efficient home.
Remodeling
Remodeling with the goal of energy efficiency can be challenging in older homes, and may require a significant investment. However, it’s possible to retrofit most existing structures with modern, energy-efficient systems, insulation, and windows to help reduce your environmental footprint and reduce utility costs. It’s important to set realistic expectations with this type of remodeling, as older homes may not ever be as energy-efficient as new builds.
Building New
New construction allows you to incorporate the latest in energy-efficient technologies and sustainable building practices from the start. This includes better insulation, energy-efficient elements and appliances, and eco-friendly materials. A new home built with modern standards can significantly reduce your energy consumption and contribute to long-term savings.
Resale Value
Selling your current or future home may not be at the forefront of your mind, but it’s important to always keep your home’s resale value in mind when making any changes to its design, or when selecting a location for a new home. A well-executed remodel can increase your home’s resale value, while a new build in a prime location may have a higher resale value from the start.
Remodeling
Remodels that focus on high-impact areas like kitchens, bathrooms, and energy efficiency can greatly increase your home’s resale value. But, the return on investment varies greatly. The amount you owe on your home, its location, and the housing market will all factor into its overall resale value.
Building New
A new home often has a higher resale value, particularly if it's in a desirable location with modern amenities. Buyers may be willing to pay a premium for a home that doesn’t require immediate updates or repairs, potentially making new construction a better investment.
Find a Builder for Remodels and New Builds
For the best of both worlds, find a contractor that specializes in both remodels and new builds. Willmark Custom Homes is a turn-key, custom builder in central Texas, with extensive experience in remodels in addition to new construction. Work with our team of designers to discuss whether a new build or remodel is the right fit for you. Choose from our modern farmhouses or ranch homes for your new build or as inspiration for your remodel, or work with us to create a custom design. Whichever you choose, we will be with you every step of the way, providing you with quality workmanship, extensive experience, and complete satisfaction in every aspect of your project.
