Is it better to buy a new home or remodel your existing one? (cheapest, appraiser)

[SageCats]

I have a home that is an "old construction" built in 1983. Is it better to remodel it and keep living in it or sell it and buy a new home? (I'm not underwater in my mortgage, btw.)
What would you do? Remodel or Sell and buy a new home?

[Ponderosa]

Too many variables for a simple answer. In Phoenix, neighborhoods tend to decline with age. Original residents move out, renters come in and things fall apart. This is mostly a problem in starter home areas, but does also affect some move up ones. If your neighborhood is going that way or you think it is likely to, then get out. Otherwise, an updated home in a nice established area is a good thing to have. You have better lots, more stable residents and less turnover, less burglaries, easier commutes, and not so much construction going on in every direction.

The main downside is you don't realize any positive return on investment in home remodeling. You won't get out what you pay for it. If you buy new, you will likely get your costs back in full along with appreciation over time.

[froglipz]

Locations being equal, new construction will generally be more energy efficient. New building codes and better building inspection procedures, along with ALL components of the home being new. Remodeling is usually more cosmetic in nature. The finished look can be similar, but the underlying structure and its mechanicals are still old.

[CodyW]

Depends on what I wanted out of it. If you're looking for a completely different package, new construction seems the better way to go. Remodeling might be great if you only want to achieve a few goals - the cost to remodel an entire home would rarely be justifiable in terms of the return you would get in value.

[hikernut]

Yes, as Ponderosa stated... there are too many variables.

My own preference is toward established neighborhoods... big trees, shorter drive to downtown areas. So as long as the neighborhood is not deteriorating, and you are satisfied with the overall floorplan of your current house, I would lean toward remodeling. For remodeling, if you are not on a strict timeline you could possibly do some of the work yourself. Depends how much time you have, of course.

Builders tend to put in the cheapest crap that they can get by with. When you are doing it yourself, you can go cheap or expensive or anywhere in between. Of course, if you can afford to build custom you can have new and whatever you want, but that's $$$$.

[Thundarr457]

There is a TV show I watch called "Love it or List It" where a super renovation expert fixes up a house that the people are currently living in within a certain budget and her opponent, a real estate agent looks, for a new house within their budget. Its pretty funny and more often than not they stay. Its usually a husband and wife and one wants to move and the other wants to stay.

https://en.wikipedia.org/wiki/Love_It_or_List_It

[Tominftl]

Moving is also a big PAIN. If you like your neighbors and neighborhood I would probably make some small renovations. Huge renovations need to be considered only if the costs are justified. (Don't over improve for the neighborhood)

[Electrician4you]

I'll buy a older home and remodel it to what I like. With a new build home you're limited to what the builder offers. Any extras other than basic are gonna cost. A lot. New homes are built to maximize builder profits. So they will use MDF cabinetry over a plywood box solid wood doors to save money.
All things equal location and size a older house can be remodeled to be like new AND most important the way you want it with the things you choose like tile paint cabinetry carpet etc

We had a choice a few years ago to remodel or buy elsewhere. We spent 50k in a complete remodel. But it was a full remodel new kitchen, bathrooms, carpet, paint, tile, showers, scrape ceilings added fans in every room. The home new is worth about 480/500k. If it was not remodeled the price would drop about what I got in it. AND it would make it harder to sell because everything would look old. The price is comparable to what a new like comp would be.

[cjmeck]

Depends on the neighborhood, the current house, and the cost to buy a new house vs. renovating. It is a local issue and a personal choice; might be a good idea to have someone local weigh in (appraiser, realtor...).

[luv4horses]

Find an inspired architect or architectural designer to suggests modifications to your current home that could change the way it suits your needs. I love the books of Susan Sasanka (sp?) and on notsobighouse.com. You often don't need big changes, just someone who pays attention to the details of your life. Buying a new house might be the only solution if insurmountable changes are needed, but it is surprising what can be done within the framework of what you have. Don't forget that changing residences will cost you 10% of your current home value, plus set you back in the interest/principal ratio for a new mortgage. So theoretically that is the money that you can improve with as a baseline.