Many of us have been working from home for quite some time now. But whether or not the house you currently reside in is conducive to this type of setup may be debatable.
Maybe you’d like something bigger and more secluded than your current house. Perhaps it does not have enough space for a home office, or it’s too small for your growing family – or maybe it’s missing a playroom, first-floor laundry room, or a nice spot to watch the Celtics game with all your family and friends; there could also be other reasons why you might want to change houses.
If some aspects of your house aren’t working well for you, you have two options: going ahead with a home remodel (or maybe even building an addition) or upsizing your home. The decision comes down to two factors: finances and (more importantly) emotional fulfillment.
While a home remodels often seems like an easier and more cost-effective option, it might just turn out to be more expensive in the long term of events. You might need to upsize your office for more space or a better location in another scenario.
If you’re currently weighing up your options, this article outlines some key points to why upsizing your home is the better option.
Home Office Remodel vs. Upsizing Your Home
- Although remodeling for a home office can add value to your current home, it won’t give you the same financial benefits as moving up to a more expensive home in the long run. Look at your location, but also at the size of your property.
- Can you afford it? Most renovations go over budget. It is possible to change your mind and fine-tune what you want as you progress. Alternatively, you could live in something half-completed while saving up the extra cash.
- Whenever you undertake a significant renovation, you may encounter unexpected issues, proving very costly. To account for budget overruns, you should set aside an additional 20% of the cost.
- A floor plan change can easily lead to overcapitalization. Spend no more than the home is worth on renovations. Will the upgrades you propose help you keep your property up to par with the other properties on your street? Is it important to you to have the best-looking home on your street? Such an attitude indicates overcapitalization.
- A chaotic period is sure to follow, and it can disrupt your routine. This is because there will always be visitors at the house. Therefore, it can be a frustrating experience while the kids are trying to study for exams with workers at home. Be mindful, however, of how far your plans will go regarding renovation commuting by car to how friends will get around too!
Why is upsizing your home a better option?
With the current trend of working from home, anyone looking for a comfortable and productive work environment would want to upsize to create a spacious home office.
Additionally, if you’re going to take advantage of the hot real estate market or just give your family the space they need to grow so that everyone can stay together but still have privacy.
The best option would probably be finding a new house with any kind of open floor plan that both you and your family dream of having so that you can brighten it up in any way you like.
This is where we at Real Estate Juan C can help you. Buying a new house has never been easier with the proper support from experts in the area!
We know that deciding between remodeling or upsizing your home is rarely easy.
Real estate is usually the most significant investment you’ll ever make, and moving, especially when the family is involved, can be a stressful experience. You should weigh the pros and cons of any decision you make, not just with finances but with location and amenities.
We can help you better understand those decisions by helping you find ways to ease the financial burden that may come along with saying buying a house in a better neighborhood.
Still, we want you to know that there will be things you may have to give up because, at some point, everything has a price.
Upsizing your home: What should you do?
Working from home isn’t something everyone can do. It takes a particular skill set to set up an office in your place and still get some work done.
If it looks like you’re ready to upsize your home to set up a home office but don’t know where to start,
Here’s what you should know to relocate to a new place with ease.
Conduct Comprehensive Research
The first step in buying your future house is conducting comprehensive research to understand the market opportunities.
If you plan to set up a home office, determine the type of space you require to accommodate your business.
This is crucial since this place will be the environment where you innovate, create, socialize, and display your ideas. Approach an expert real estate agent like Juan C to help you find a house that fits all your requirements.
Create a realistic budget and convey it to the agent before starting the search.
Select a Property That Matches Your Business Operations
Before starting the hunt for your new property, be clear about what you want. The type of neighborhood, number of bedrooms, location, budget, and many other factors govern the choice of your house.
Analyze the essential features you need in your property according to your home office setup requirements.
You may plan to interact with customers or meet your potential clients in your home office, so selecting a property that accommodates all your business functions is necessary.
You may need special business accommodations, such as additional driveway parking for visitors, to achieve your business goals. Consider all such aspects before finalizing your purchase.
Moreover, your new home office should offer a professional workspace. Having a quiet and peaceful work area with an appropriate ambiance positively impacts your clients.
Your productivity increases when you work in a professional setting with adequate lighting and seating. Even if you won’t be meeting anyone in person, having a professional background while video calls can benefit your business. Therefore, this is an important point to consider in your home office remodel.
Analyze Your Mortgage
A crucial step in purchasing a house is understanding your loan options. Various factors, such as existing debt, current income, and credit score, affect your loan eligibility.
Obtaining a pre-approved mortgage from a lender can be beneficial and help you streamline the buying process. Sellers typically prefer pre-approved buyers as it proves their ability to pay.
You can also lock in mortgage rates while hunting for your new home.
Handle Business Legalities
You may want to establish a separate identity for your business by selecting an appropriate legal structure, such as a corporation or limited liability company.
Consult a lawyer or hire a business formation company like ZenBusiness to simplify the setup process, and retain an accountant to help explain the types of home business tax deductions you can qualify for once you’re up and running in your new abode.
The Bottom Line
Deciding whether to upsize or remodel your home can be a tough decision. While remodeling can be a fun way to customize your home, it can also be costly and time-consuming. Remodeling can cost thousands of dollars, and you could be left with terrible results.
The best way to skip the hassle of remodeling is simply moving to a new home that already has the features you want. Also, you’d be saving money up front because you’ll only need to worry about the down payment and not the full cost of the renovation!
Upsizing your home is better because you don’t have to worry about the quality of the construction, the money, or the time it takes to remodel, and it’s not nearly as stressful.
It’s a much more pleasant experience, and it leaves you with plenty of room to grow. Plus you don’t have to worry about making any significant changes for a long time, which is precisely what most people want.
If you’ve run out of room at home, and your company has been growing while working from home, a good idea would be to get a new place with more space while staying close enough to not lose any time on long commutes.
Letting go of this headache will allow you to focus on what matters: running a successful business!
[Related Article: 7 Things to Know Before Buying a House]
At Real Estate Juan C, we want to ensure you find your dream house with all the space and features you desire. Reach out to us today to start the process!