When folks are considering remodeling, the question that often arises is should we stay and remodel, or should we find what we want and move.
Let’s assume your home is a 3 bed, 3 bath, 2,100 square foot home. You would like to add another bedroom and bathroom because one of your bedrooms is small and is being used as an office. The size of this addition would be about 200 – 250 square feet (bedroom, closet, bath).
Several factors to consider:
- Costs of moving, inconveniences, neighbors.
- Listing and commission costs. Showing your home. Moving costs. Fix up prior to selling. Buying new furniture for new home. Typically 6 percent of the home’s price.
- Surprises – you know what you have now, but what are you getting? Even a good inspection will miss something, we see often (see this post about shower).
- Packing and moving costs: we called Chris Borchers who is the manager of Crosstown Movers (many of our clients have used and have great things to say), and he states that a 2,000 square foot home will cost about $1,560 plus materials estimated in the $400 range. This includes packing up the contents, loading onto truck, and unloading at new home – but not unpacking (you get to do that…);
- Larger house, more property taxes.
- Larger house, more operating costs – insurance, gas, electrical, landscaping, etc…
- Other fees – closing costs, change in address,
- Fixing up existing home for resale, estimate $2,000 (can vary widely);
- New furniture/appliances, blinds, etc. for new home, estimate $2,000.
- Neighbors, school district. One level home.
- Depending on situation, home equity may be eaten up in new purchase.