When dreaming of your ideal home, it's natural to get lost in the excitement. From drooling over a primary suite with high ceilings to falling in love with a kitchen island or reading nook, it’s easy to skip over the practical side of things and linger in ‘dream home heaven.’

Unfortunately, when reality hits, and it’s time to crunch the numbers, many homeowners are faced with the realization that high mortgage interest rates—and the limited availability of ‘dream properties’ on the market because of those high rates—are making moving to a new home a lot more complicated and expensive.

With many homeowners hesitant to give up their favorable existing mortgage terms, those in the market for a new home are struggling to align their ideal home aspirations with long-term financial security.

Before deciding that your dream home is out of reach, there's a strategic and financially savvy alternative that could turn things around.

Home remodeling.

But is home remodeling right for you? What are the benefits of remodeling versus building a new home?

The Studio Z team is here to help you find out.

The true cost of living: High mortgage rates

In the wake of the pandemic, many homeowners secured unprecedentedly low mortgage interest rates through refinancing or moving and are reluctant to part with these favorable terms, even if it means living in a less-than-ideal home. At the same time, home prices continue to rise as supply can’t keep up with the high demand for quality homes.

For those contemplating selling and buying, the prospect of doubling or tripling interest rates makes moving a much less appealing option. As an alternative, homeowners with the means to remodel are choosing to invest in enhancing their existing homes—a more financially sound decision for many in today’s market.

Is a home remodel the right decision for you?

Almost a third of homeowners surveyed in August 2023 said they’d already completed a home improvement project during the year—a strong indication that more homeowners than ever are realizing the benefits of holding onto what they have and improving it.

But how can you tell if remodeling is an option for you?

Consider the following:

Can you see yourself staying in your current community? Deciding whether to move to a new home isn’t just about the house, it’s also about the location. It’s vital to consider how happy you are in your current neighborhood and the benefits of staying versus moving.

Is there untapped potential in your current home? By speaking with a professional architect, you can find out if it’s possible to reconfigure your space or add additional rooms to address the changing needs of your family and lifestyle.

Have you explored the impact of outdated features in your home? When you’ve lived in a home for even a few years, it’s easy to adapt to living with the awkward floor plan, bumping elbows in the crowded kitchen, or waiting for your turn in the shared bathroom. This is why it’s important to consider whether a remodel could give your living space the new life and functionality it needs, making it feel brand new without moving.

Do real estate market conditions and interest rates make selling and buying less doable for you? While buying a new house might be exciting at the start, for many buyers, enhancing a current home can be a more financially viable option. Especially when considering the added costs (and stress) of moving.

How do you measure the value of remodeling? While updating the kitchen and carrying out a bathroom remodel can help boost the return on your investment when you go to sell your home, it’s just as important to understand the value of living in a home that is now tailored to fit your personal needs and style.

Tip: If you think you want to sell your home, consider the many benefits of renovating your home before viewing other properties. Assessing the benefits of major home remodeling and new additions can help add clarity to your decision.

Investing in your future: A wise decision?

While many homeowners choose remodeling over moving due to financial limitations, did you know that a well-executed home remodeling project can enhance your property’s resale value? However, we have found that after a thoughtful and personalized remodel, selling is the last thing on the homeowner’s mind.

Here are a few of the financial benefits of remodeling:

Increased property value: Even if you’re not planning on selling your home now, a carefully planned remodel can significantly increase your home’s value for when you do. Enhancements like additional square footage, modern amenities, and improved functionality can lead to a higher appraisal.

Cost-effectiveness: As mentioned, remodeling can often be a more cost-effective option than purchasing a new home. This is especially true when you consider the additional costs associated with buying and selling, like realtor fees, closing costs, and moving expenses.
Investment in rising markets: Quality properties in well-established or up-and-coming areas can be like gold in a competitive market. Especially if your home is in the neighborhood you love, surrounded by desirable amenities, investing in your existing home can be a smart move.

Because there’s no price tag on comfort and peace of mind, it’s important to weigh in the lifestyle benefits of remodeling:

Personalized living spaces: A major home remodel allows you to tailor your living spaces to align perfectly with your lifestyle. From upgraded kitchens to expanded family rooms, your remodeled home can truly pay off in happiness.

Room to grow: Remodeling can add the space and peace your growing family needs. Giving teenagers their own space or adding another bathroom and bedroom suite to have an aging parent move in can help ease growing pains.

Ease of living: In many cases, a major remodel can also involve updating appliances and systems (HVAC, plumbing, electrical), as well as improving the home’s insulation and structural integrity. While the benefits of living in a healthier home that’s easier to maintain can be felt every day, the financial benefits of a more energy- and cost-efficient home add up to real savings.

Aging in place: Adding or planning for features that enhance your ability to live in your home for a longer time is a wise investment. For example, when remodeling a bathroom, add blocking—extra 2 x 4s—in your walls so you can easily (and safely!) mount grab bars in the future.

While carrying out a major remodel in one go is a more practical option for most, it’s possible to tackle home improvements incrementally. A phased approach means addressing one area at a time based on your priorities and budget. While this allows for saving up the funds for each project, a phased approach will take longer and be more costly overall—and can lead to remodeling fatigue.

Planning for success: Getting your home renovation (or remodel) right

The success of a home remodeling project often hinges on careful planning and thoughtful consideration of not just what you want from your home now but also how well your home will serve you in the future.

This is why collaborating with experts like architects is essential for ensuring your remodel project evolves into a true reflection of your lifestyle and that ‘dream home’ feeling.

“As homeowners choose to remain in their aging homes rather than move, they continue to turn to industry professionals for assistance with necessary repairs and discretionary projects that improve their quality of life.”

— Marine Sargsyan, Houzz staff economist

Here's a breakdown of some essential aspects to consider when planning your remodel with a team of experts:

1. The role of your architect

Engaging an architect is partnering with a pro who can create results that will make you question why you ever even thought about moving.

A great architect ensures that your remodel aligns with your aesthetic preferences and meets functional needs and regulatory requirements. They naturally balance design excellence with the practicalities of construction. Your architect can also help you explore and consider possibilities for your home that you haven’t thought of.

The role of a reputable architect should include:

Comprehensive design expertise
Understanding your wants and lifestyle needs
Guidance on structural changes
Strategic planning for long-term functionality
Expertise in building codes
Budget-conscious design solutions
Attention to sustainability, eco-friendly materials, and energy-efficient processes
Coordination and collaboration with your contractor and other professionals
Staying engaged with you through construction, visiting the home to help ensure the work is following your plan
Being your advocate through the entire process

2. Effective collaboration

A successful remodel requires seamless collaboration between homeowners and the design team. This partnership extends beyond sharing ideas; it's about establishing open communication channels, conducting regular project updates, and engaging in feedback sessions.

To achieve this level of collaboration with your architect and other contractors, focus on:

Open communication channels
Regular project updates and feedback
Mutual understanding of project goals and expectations
Clear roles and responsibilities
Timely conflict resolution
Flexibility and adaptability

3. Budget alignment

Even when designing your dream home, part of aligning your budget will involve prioritizing needs over wants and exploring cost-effective materials and designs.

A well-planned budget helps keep your remodeling project financially viable and achieves your desired results.

To help keep your home renovation costs in line:

Establish your priorities as early as possible
Review architectural options with cost in mind, especially when making significant structural changes or additions
Meet with several contractors to understand how they work and what they estimate the project will cost
Discuss with your team how design and materials selections can potentially help reduce future maintenance and energy costs.
Work with your team of professionals to understand where it makes sense to “splurge” on more expensive materials, fixtures, and finishings. Often the higher-quality materials can save you money over time.
Establish a realistic contingency fund

4. Extensive research

Before deciding whether you’re going to sell or upgrade your home, explore the wide array of resources available to research the benefits of remodeling, as well as the value of your home (beyond just cost!).

For example, take time to consult with architects and designers who have the knowledge and experience to make your home a happier fit and healthier environment for your future.

Research the following key aspects:

Remodeling benefits: Do some independent research into the advantages remodeling can bring to your home — without pressure from sources that might not be considering the real impact of selling, buying, and moving.
How to insert more “you” into your home: Explore ways to make each space a meaningful, purposeful, and functional part of your home, ensuring it aligns with your lifestyle and aspirations.
Review financing options: Look honestly at what you can afford, know where and when you can get the funding for your remodel, and share those details with your architect from the beginning to get a solution that works with your financial reality.

Tip: When it comes to funding a major home remodel, there are many options available. For example, consider refinancing your home with a home improvement loan or utilizing a Home Equity Line of Credit (HELOC); or you may be able to tap into the equity of your investment portfolio.

Partner with experts: Upgrade your home with Studio Z

Whether driven by financial considerations, emotional attachment, or the desire for practical improvements, home renovation projects are a great way to create your own custom home when new mortgage interest rates might otherwise make moving impossible.

Allow Studio Z to handle your entire remodel project, from concept to completion. Offering both architectural and interior design services in southeast Michigan, our award-winning team is on hand to ensure you can achieve your perfect home with as little stress as possible.

Get in touch today to discover the benefits of a home remodeling project tailored to you.

Take a closer look at some of our inspired home remodeling projects.

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