Should You Buy or Remodel a Home? The Ultimate Guide

​A question left unanswered within the real estate market is whether you should buy or remodel a home. Each can provide outstanding benefits and negatives, depending on the current situation. To determine whether buying or remodeling is the ideal option for you, we recommend you become knowledgeable on our comprehensive guide below. 

Should I Buy or Remodel a Home?
We (Grim Builders) are a general contractor in Ledyard, Connecticut, and our clients continuously ask this question. However, there isn’t a right or wrong answer, and it depends on personal circumstances. But, to develop a better understanding of which option will suit you best, here’s what you need to know: 


Costs The most significant factor individuals consider between the battle of buying or remodeling is costs. Undoubtedly, this plays a considerable role in the decision because money isn’t endless. Either option encounters “hidden” fees that many don’t think about when actioning them. To ensure you don’t fall into any financial difficulties when buying or remodeling a home, these are the costs you’ll need to remember. 


Buying a home 
Evidently, people deciding to buy or remodel a home already own a property. Because of this, when purchasing a home, you’ll likely need to sell one also. Therefore, we’ll need to associate the costs of selling a home, moving, and buying another property to decipher the “true” price of buying a home. 


Costs of selling a home 
It’s estimated that selling a home costs upwards of 10% of the total sales price. Unquestionably, this is a substantial amount. To visualize where the expenses get delegated to, see the below: 

• Agent commissions – Approximately 5 to 6 percent (fees can differ from agent and location) 
• Minor repairs – To ensure a seamless selling process, minor repairs might be needed. These could be anywhere between $500 to $5,000 
• Major repairs – Additionally, major repairs could be needed, especially if you’re selling an older home. Depending on the repair’s significance, this could be anywhere between $5,000 to $50,000. Notably, feel free to contact us if you’re looking for builders near Ledyard, Connecticut. 
• Capital gains tax – If your current property has appreciated in value from its original purchased price, you might need to pay capital gains tax. Most people can avoid this if the house hasn’t increased value by more than $250,000. 

The above outlines all the costs you’ll want to take into consideration before thinking about selling a home. Including this, you must become knowledgeable on the costs of buying a home to ensure you calculate the expenses accurately. 


Cost of buying a home 
Unfortunately, selling a home is filled with fees and expenses that need to be paid. However, buying a home follows a similar route. Here is the type of costs you can expect: 

• Closing costs – These can range anywhere between 3 to 6 percent
• Remodeling, furnishing, and appliances – Undoubtedly, this depends on the size of the house, what’s included, and the quality of furniture. But “on average,” you should budget around $8,000
• Home appraisals – For a single-family home appraisal, it’ll cost around $313 and $419
• Title insurance – Around 0.5 to 1 percent of the purchase price (isn’t needed, but recommended) 
• Mortgages – You’ll need to consider the new mortgage (whether it’s cheaper or more expensive) and the budgeting required for overlapping mortgages from both properties. 
• Moving – This expense ranges massively, costing around $35 to $12,000, depending on the extensiveness of the job 
• Property tax – Depending on the state, property taxes will fluctuate anywhere in the 0.31% and 2.13% regions
• New living costs – Your new house might encounter extra living costs because of its location, such as utilities, shopping, and lifestyle, which all need to be accounted for. 

The above briefly showcases the costs connected with buying and selling a home. But what about the remodeling route? 

Remodeling a Home

​There are various costs associated with remodeling a home, which you’ll want to know before diving headfirst into this venture. The prices below will highly depend on which contractor you choose or whether you were to opt-in for one at all. But, if you’re looking for builders near Ledyard, we recommend contacting us for a more accurate quotation.  

• Architectural planning – You’ll need to contact a professional architect for larger reconstruction projects. This isn’t cheap, and it’ll cost you between $2,000 to $8,500, depending on the job’s complexity. 
• Permits – Building permits can cost anywhere in the $50 to $2,000 region, again, depending on the significance of the project 
• Labor – If you don’t have the skill or time, you’ll need to hire contractors. Depending on the organization, this figure can vary. Typically, it’ll be between $20 to $150. For a quotation on general contractors in Ledyard, feel free to contact us for competitive pricing. 
• Materials – Again, it depends on what job you’re doing and the current market price 

When remodeling a home, you’ll need to be accurate with your budget. Failing this could result in financial difficulties. Because of this, experts suggest adding an initial 20% onto your budget to avoid this. 

Time 
Searching for additional contractors, material cost, selling agents, and everything else isn’t the only factor you’ll need to consider when buying or remodeling a home. Additionally, you’ll need to be thinking about time. 

Buying a home 
It could take around a week or three months to buy a home. It depends on how fast you act, how busy the current market is, and how easy you can get approved for a loan. Combining all these factors could be a quick or slow process, depending on the current situation. 
Think about it, you’ll need to search for the desired house, find a trusted adviser with expertise within the housing market, and be approved for a loan. The time it takes is out of your hands in some essence. 
Generally speaking, buying a home is a much faster option (depending on the significance of the remodeling). 

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Remodeling a home 
Alternatively, if you want to undergo the remodeling route, the time scale comes down to the project size, funds, and whether you hire somebody or not. A “rough” outline can be seen below: 

With remodeling, the timeframe can vary massively. Contact us for more accurate duration estimates if you’re looking for general contractors in Ledyard. 

Expertise
Undergoing either adventure isn’t a walk in the park. Because of this, you might need to hire additional help with your project. But which is easier to undergo? 

• Buying a home – Because buying a home is a much more “traditional” path, it’s easier because of the resources surrounding you. Buying a home will usually need specially trained agents within the field, allowing you to take the back seat. They’ll guarantee that you’re legally sound, paying the correct amount, along with providing expert advice about buying a home. 

 

• Remodeling a home – When you’re remodeling a home, you’ll need to understand construction and home development. Arguably, basic knowledge on the subject might also be required when hiring contractors to undergo the job. Whether you’re looking for an addition or just a general contractor, we have you covered in Ledyard. Feel free to contact us for expert advice and competitive pricing. 

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The above states some significant considerations you need to think about before making the initial decision to remodel or buy a property. 

Pros And Cons of Buying and Remodeling a Home

​To conclude the above, we’ve created a pros and cons section. Here, you can see a brief overview of what we believe are the significant advantages and disadvantages of buying or remodeling a home. 

Buying a Home

Remodeling a Home

Conclusion 
After reading the above, you should have a comprehensive idea of remodeling or buying a home. The decision depends highly on your situation, ambition, and knowledge. However, each will provide endless amounts of joy once finalized. 
Need help with your project? Feel free to contact Grim Builders. We’re a general contractor in Ledyard, which provides services for additions, kitchen remodeling, floor replacement, porches, practically anything which sparks our imagination.