I've got a 2800 sq. ft., two-story home from 1981 that's in decent shape but definitely needs some updates. We're looking into a massive renovation that includes taking down walls, overhauling the kitchen and bathroom, adding a door to the exterior, replacing the floors, updating the drywall, and changing all the doors and trim. We bought this place back in 2011 for $263,000, and now houses in our neighborhood are selling for around $625,000 to $700,000. However, the renovations might cost us anywhere between $450,000 and $500,000! I'm wondering if it's time to think about tearing down and rebuilding from scratch instead of just renovating. I also want to mention that I've been checking the market for other homes in the area for a few years, and I really don't want to move, since nothing I've seen measures up to our current spot.
3 Answers
If you're not looking to move, that narrows your options a bit! I suggest you get multiple quotes for both renovating and building anew. For homes like yours, if there aren't any big structural issues, renovations might be cheaper. Just think about the end value too—if you're going to spend over $500k, but the house value only jumps to $700k after, that's quite a bit of extra expense for little return. Keep practical priorities in mind!
It's definitely worth considering the logistics if you think about tearing down to rebuild. Do you have somewhere else to stay during the construction? A big renovation can be extremely disruptive, so it's something to weigh carefully.
Honestly, whether you should tear down or renovate really hinges on your specific situation and how your contractor views the project. Sometimes, complex renovations can actually get more costly than starting fresh, but that's often because the contractors find unexpected issues along the way. If you're sticking with the same footprint without major plumbing or structural changes, renovations can be the way to go.
Exactly! It's all about making sure that your investment makes sense for the neighborhood. Do your renovations in a way that improves your living quality without overreaching for the area's market value.