Are you in desperate need of another bedroom due to an impending arrival? Maybe you can no longer make do with an apartment-sized kitchen. Regardless of the specifics, if your current home is no longer meeting your needs, it’s time to make a change. But is the solution to build an addition to your home? Or is it better to just move to a different home altogether? The build an addition or move question has troubled many a homeowner. Below, we’ll help you evaluate the pros and cons of adding-on to a house vs. building a new construction home.
Remodel Vs. New Construction– 5 Key Questions to Ask
Moving can be difficult, so many people ask themselves “Should I add on to my house?” if they think it will allow them to avoid a move. But adding-on to a house isn’t easy either. When deciding whether to build an addition or move, there are several factors to consider. Here are five questions to help you decide whether to build or remodel:
1. What Do You Need?
Make a list of essential features you must gain from build or remodel. What’s working for you at your current house? What’s not working? Answering these questions may help you determine if adding on is actually the best way to move forward.
2. What Is Possible/Allowed?
Once you know what you need, you’ll want to figure out what you can actually do. There are a number of possible limiting factors here, such as:
- Local zoning laws
- HOA and historic building restrictions
- Space limitations – you only do so much with your existing lot
- Structural issues, especially with older buildings
Determining what’s physically possible and legally permitted can help you determine whether you should build an addition or move.
3. What Can You Afford?
Aside from the physical and regulatory limitations, there’s the matter of money. In general, additions and renovations cost less than building new, but costs can escalate quickly, especially when you run into unforeseen complications. This is especially true in older homes, in which a relatively simple addition could wind up turning into a major construction project in order to bring existing systems and structures up to code.
4. Could You Get a Return on Your Investment?
Even if you can afford it, is it worth adding on to your home? As a general rule of thumb, you don’t want yours to be the most expensive house on the block. Put another way, you don’t want to pour money into a home that you will not be able to get back when you sell. Certain improvements, like adding a second bathroom or upgrading the closet in the primary bedroom tend to have a better ROI than adding a sunroom or a garage.
Building a new construction home is often a better investment, especially if you build in the right neighborhood. According to RCLCO, location is one area where buyers are least likely to skimp on, so relocating is often the better choice.
5. Can You Handle the Time and Stress Involved?
Finally, there’s the matter of how adding on or building a new home will affect your lifestyle. If you choose to build an addition on the house, you’ll need to either put up with the noise and dust of your construction crew or find another place to stay. This requires the added expense of paying rent on top of your mortgage payments. On the other hand, building a new home may take longer than renovating, but it’s much less disruptive.
Reasons to Build a New Home vs. Adding On
As you consider the above questions, it’s important to take into account the potential advantages of each option.
Reasons to Add-On or Renovate
Some homeowners choose to renovate for these reasons:
- Potential ROI – A two-story add-on could get you a 65% return on your investment.
- Lower upfront cost – Add-ons and renovations usually cost less upfront than whole new constructions—as long as nothing goes wrong, of course.
- Less time – Renovations usually take less time than new home builds, so you could save some time, if that’s important to you.
It’s worth noting that while renovating can be a good idea in the right circumstances, you need to go about it carefully. Some additions could make a home harder to sell (depending on your neighborhood), and you might have local limitations, so do your due diligence.
Reasons to Build New
Some of the reasons you might want to build a new home include:
- More control – You can choose your exterior design, floorplan, number of bedrooms and bathrooms, finishes, and more, right from the start.
- Fewer surprises – When you work with an experienced builder, like the ones that build the new homes at Lilyana by Hillwood, you know the cost of your home up front. Once you choose your design and floorplan, and make your selections on optional features and upgrades, your costs are set. You can even use Lilyana’s mortgage calculator to find out how much new home you can afford!
- Greater efficiency– New homes are designed to be more energy efficient than older homes and some are built with sustainably sourced and recyclable materials.
- Less stress – No need to live in a major construction zone or endure the financial stress of paying rent on top of your mortgage payment.
- It’s all new – New homes are still under warranty, and there’s less chance that something will break. And come on, who doesn’t love that new-home smell?
When you build new, you can get the home you want from the very beginning rather than trying to fix up something that may have more issues than you initially anticipated.
Build a New Home at Lilyana by Hillwood
Another advantage to building new is the chance to live in a master-planned community like Lilyana by Hillwood in Celina, TX! Located within the acclaimed Prosper ISD, Lilyana offers the advantages of small-town living just minutes away from the $5 Billion Mile in Frisco, TX. Come visit our community that has over 50-acres of green space and an array of amazing amenities or take a virtual tour instead. Contact us to learn more about Lilyana today.