Maybe your family has outgrown your existing home, or you want to upgrade to a greener and more energy-efficient home. Regardless of the reason, you may be trying to decide between financing a new home construction or remodeling the home you own. To help you make your decision, here are a few factors to consider.

Choosing Between a Remodel & New Home Construction

1. Determine What a Remodel Would Entail

In choosing between remodeling or hiring custom home builders, try to account for the things you don’t like about your home. If there are just a couple of features that you want to change, such as adding a new bedroom, remodeling might be the way to go. However, if you envision putting in much more work and possibly adding multiple rooms, you might be better off in financing an entirely new construction.

2. Considering the Costs

In remodeling your home, you can use the equity you have in your home to finance the work. Just some of the options available to you will be a home equity line of credit — HELOC — or a home equity loan. However, if you plan to demolish the existing home, so home builders can create a new construction in its place, you’ll be destroying your source of equity. Your mortgage lender may prohibit this, or they may place restrictions on the process. It’s wise to talk to your lender ahead of time and to research all of your financing options before you make a final decision.

3. How Will Your Family Live?

In terms of remodeling your home, your family may only be mildly inconvenienced, and they may be able to continue living in the home. However, it’s essential to consider what will be involved with a new home construction. This means you will have to vacate the home, move your belongings into storage temporarily, and find other living arrangements. While a remodel may not take longer than 10 weeks, it can take up to six months to completely construct a new home. In addition to financing the construction, this means renting an apartment or home for six months or longer.

4. How Long Will You Live in the Home?

It simply doesn’t make financial sense to build a new home that you plan to sell within seven or fewer years. In that case, you’re better off remodeling the existing home and using the improvements to increase the equity you have in the home. However, if you plan to remain in the home for considerably longer, building a new construction may be the preferred option.

 

Landmark Builders builds custom luxury homes in the Whitefish, MT, area. If you have decided that a new home construction is ideal for your situation, they can help you design and build a one of a kind home. To view some of the luxury homes they have previously built, visit their website. To arrange a consultation, call them at (406) 253-3839.