Should You Renovate or Rebuild? Factors to Help You Decide

Do you renovate or knock down and rebuild? Obvious factors like budget and time frame are the first things to consider, but some bigger issues play a crucial role. Here are the real questions to ask if you’re struggling with this decision for your home.

1. Is Demolishing Your Home an Option in Your Area?

It might not be possible to demolish your existing home and build something new. In some areas, zoning laws prohibit houses of a certain age or historical significance from being demolished or significantly changed. Check the age of your home through the drainage plan in your purchase contract or council records. Then verify the rules regarding demolishing a home like yours with your local council.

2. How Significant Are Your Renovation Requirements?

Consider how much extra room or significant changes you need. If you want to make substantial structural changes, it may be worth questioning whether a renovation is viable or economically the best investment.

3. Is the Orientation of Your Existing Home Workable?

Ideally, you want north-easterly or northern sunlight in your living areas. If your home faces the wrong direction and there’s no room for an extension to optimize solar access, a renovation may not be the best use of your budget.

4. Have You Checked the Real Estate Value?

Understand what types of homes sell well in your area. Is your existing home already close in value to the top amount payable in your suburb? Or is it one of the smallest and least desirable homes? Talk to local agents about your home’s worth now, versus post-renovation, versus a brand new home. This will help you set a budget and avoid over-capitalizing.

5. Are You Ready to Accept The Cost of Renovating vs Building from Scratch?

Renovation costs are more variable to the existing conditions causing prices per square foot to fluctuate more than a new build, but that’s not to say a new build can’t easily match the square foot cost of renovating. It’s all in the finishes & footage of either method.

6. Have You Done the Due Diligence on Your Existing Home?

If you love your home and don’t want to demolish it, assess its structural soundness, access, services, and overall state. Determine potential repair or replacement costs to see if your renovation budget can accommodate these needs.

7. What Kind of Home-Lover Are You?

There are two types of home-lovers: those who cherish the character and history of their home and those who prefer brand-new homes tailored to their exact specifications. Knowing which type you predominantly identify with can guide your decision.

Thomas Custom Builders can help you weigh these factors and make the best choice for your home. Contact us to discuss whether renovating or rebuilding is right for you!