Should we renovate our house or tear it down and rebuild it?
We are often asked “how do we decide if a renovation or a rebuild is the best decision for us?”
Well, first of all, let’s examine the difference.
With a rebuild, your chosen contractor will demolish the entire living area and rebuild it from the ground up. A renovation, sometimes called a remodel, focuses more on a specific area of your home, like your kitchen or basement.
Second, for the purposes of this article, we’re assuming you love your location and absolutely insist on staying where you are.
So with that in mind, how does one decide which way to go?
The two main factors will be the age of your home and your budget. In general, if your home is approaching 70 years old, meaning it was built before 1950, and your budget can absorb it, our recommendation would be to rebuild it. This gives you a fresh slate in the future. For example, you’ll know that your rebuilt home must meet all current building codes (no need to worry about asbestos, old wiring, or any other safety issues common to older homes).
There are also additional benefits to this approach. Since you are starting anew, less time is required for integration between the old and new areas; this can be a tedious and difficult process. Also note that the options are greatly expanded with a rebuild; a typical example is a 10′ ceiling height throughout your home. This is a simple feature to accommodate, structurally, during a rebuild, but it is often a difficult change to make in a renovation, where the existing plan of the house will impose limitations.
Lastly, if your mindset is long-term, it is generally a better financial decision to rebuild, despite the extra money required initially. The reason for this is that the entire house receives a general “reset” and is therefore more likely to maintain or increase in value in the future.
As with any decision like this, there are some downsides to consider. With a rebuild, you’ll have to move temporarily (try to find a contractor who can accommodate you), while with a renovation, you can usually stay in your home during the process. You may also have some neighborhood or community factors to consider.
We hope this has helped you make the decision that is best for you.
