Older homes often have the best bones. They’re built with exceptional quality, and they hold ample potential. It’s not always easy to see the potential in an older home when you live in one and want something that’s a bit shinier and newer, but Chip and Joanna Gaines have shown the world time and time again how easy it is to take an older home and turn it into something more beautiful than many brand-new homes. If you live in an older fixer upper, you might wonder whether it’s a wise financial decision to sell and buy a new home or put the money into renovating your older home. It’s not an easy decision, but renovating can pay off far more than selling and buying new.
1. You Could Make A Lot of Money
There’s one in every location. You drive down the street in that gorgeous gated community taking in all the big, beautiful homes with their fancy décor and beautiful architecture. You grimace a little when you drive past that dilapidated old house without any wow factor. If that home is yours, you might be tired of feeling that way.
Putting the money into a renovation of your older home is almost always a spectacular idea when your home is located in a beautiful neighborhood. Renovating the oldest, ugliest house in a neighborhood is helpful because it only brings up the value of the home. If your home is really old, you either bought it for very little recently or you’ve lived there so long you already have ample equity in the house. You can add even more value to your home by bringing it up-to-date with your renovation. When and if you decide to sell, the asking price you list will be much higher.
2. You’ll Save Money on Utilities
Your older home probably costs you a lot of money you don’t even realize you’re spending. It’s the extra money in your utility bill. It’s the extra you pay to keep your house warm in the winter and cool all summer. It’s the energy your appliances use to run efficiently. Renovating your old house means updating your HVAC, your plumbing, your insulation, and your appliances. Not only does a purchasing new energy-efficient home upgrade allow you to take a nice tax break during income tax season, it also allows you to save money every month on the cost of running your home.
According to Renewal Design Build, Inc., the savings from a new energy-efficient kitchen and heating and cooling system exceeds hundreds of dollars every year. It’s one of the most financially beneficial things you can do for your new home, and it’s one of the best things you can do for your wallet.
3. It Might Be Cheaper
You could buy a new home, but can you afford precisely what you want with the cost of materials today? In many places, you can’t. This means you’re spending more money on things you can’t really afford and not getting everything you want. With your old home, renovating can mean spending less than buying a new home. There are no building costs, which can really drive up the cost of a new home. You’ll have more money to upgrade and update to what you want in your current home, and you’re adding value to your existing home.
Buying a brand-new home with most of what you want isn’t as cost-effective since you’re not gaining any equity in the house. It’s a decision you must make on your own, but it’s one worth considering before you list your older home in favor of purchasing something new and impressive.
Renovating older homes can mean a hefty profit for homeowners. Do your due diligence before you begin your remodel so you don’t over-improve for the neighborhood. It’s imperative you understand not all older homes are worth renovating if they’re location isn’t great. Do your homework, find out what homes in your area are worth, what features they have, and how much value you can add to your home versus the amount you’ll spend to add it. That’s how you know your remodel is a good one.