When it comes to making the decision between remodeling or building a new house, there is no one-size-fits-all answer. As a general rule, renovations are often less expensive than constructing a new home. However, if the existing building is particularly old and in need of repair, this may not be the case. Anderson suggests that remodeling is the way to go if a few low-cost projects can create the home you desire.
Otherwise, building a new house may be more cost-effective. Both renovation and new construction have their advantages. Much of it depends on your budget, the type of home you want, and other considerations. Ultimately, it is up to you to decide which option is best for you.
Alternatively, you may have wanted to build a custom home only to find an “almost dream home” already built; it just needs some love or changes to match your lifestyle. There is a common misconception that remodeling a home is less expensive in the long run, which is true if you already own the property. Tim Bakke, co-founder of The Design Series, a website dedicated to housing plans, said: “While there are many historic houses and buildings that are 100, 200 or more years old and still in good condition, usually homes over 75 or older need a critical eye; they must have been very well looked after. The scope of remodeling can vary greatly from fixing up a few rooms to an extensive top-down renovation; it all depends on the house.
If the cost of remodeling your home exceeds its resale value or if there are lots available in your ideal neighborhood for building a new house, then constructing a new one may be more cost-effective. Depending on factors such as where you live, the size and age of your home, and the projects you're undertaking, renovations may be cheaper than buying a new house. Tim Bakke, co-founder of The Plan Collection, a website dedicated to housing plans, said: “While there are many historic houses and buildings that are 100, 200 or more years old and are still in good condition, usually homes over 75 or older need a critical eye; they must have been very well looked after. Remodeling can be expensive but investing money in your home can increase its value with a higher return on investment when reselling.