Remodel or move: Which is right for you?

A number of factors impact whether remodeling or buying a new home is the best financial and emotional decision for you and your family. Remodeling might be a better option if market conditions aren’t ideal for selling. And moving could be a better option if you don’t want the hassle of living in a construction zone. Weigh the pros and cons of each option carefully to determine which is right for you.

Make a smart move.

If your home is no longer fulfilling your needs, it might be time for a move. Here are some things to keep in mind if you’re thinking of making a move.

Cost

There are various costs associated with moving to a new home like the cost of preparing your home for sale, agent fees, closing costs and moving expenses. If you’re upsizing, you may have higher property taxes, utility costs and mortgage payments.

Size

Consider the house size and lot size. If you’re planning on growing your family, do you have enough bedrooms? Do you utilize the space in your current home or would a smaller home make more sense for you? Have you always dreamed of having a bigger (or smaller) yard?

Location

Think about your location and whether it’s convenient for you. Perhaps you’d like to relocate to a neighborhood that’s closer to work or schools.

Choose from a broad range of mortgage options to meet your unique needs or prequalify to see how much you might be able to borrow.

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It’s time to improve.

If you love your community and neighborhood but your home leaves much to be desired, it may be time for some improvements. Here are some things to keep in mind if you’re considering a remodel.

Cost

Similar to moving to a new home, there are various costs associated with remodeling too, like the cost of permits, material, labor and additional expenses like storage fees, a hotel room, or dining out if you’re unable to use the space during the project. You should also keep in mind any financing costs if you’re not paying in cash.

Lifestyle

Remodeling a home can mean your living space is drastically altered which may affect your lifestyle. For example, if you’re remodeling your bathroom, you might not have access to your vanity, sink or shower for days or even weeks. Or, some of the other rooms in your home may turn into temporary storage areas.

Return on investment

If you’re hoping to increase your home’s value, think about what types of remodeling projects will actually get you there. Not all improvements guarantee a return on your investment. In fact, the value of your home may be capped at some point, so take that into account when planning your remodel.

Answer a few quick questions about your project and get a personalized estimate. Then, explore ways to pay for your project with a variety of affordable options.

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Build or buy a house: Two paths to your dream home.

Deciding between building and buying can be a tough decision. While it can be fun customizing the floor plan and features, it could also cost more and take longer (on average, about seven months according to a 2020 U.S. Census Bureau report.)1 Buying a home has its advantages too, such as faster move-in time and potential bargaining power. Some disadvantages could include market competition and needing to make repairs. Read on to learn more about how building compares to buying a house.

Build your dream home.

Building your home means you’re able to customize every detail to make it completely your own – from the layout, cabinets and flooring to the lighting, appliances and paint colors. Learn more and get inspiration on how to tailor your home to fit your needs and style.

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How I did it: bought my dream home using equity

If you’ve made upgrades to your home by way of small projects or large-scale renovations and you’ve found yourself with extra equity in your home, your dream home may be within your reach. Learn how a Minneapolis family built enough equity in their home to buy their dream house.

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Is it cheaper to build or buy a house?

In many cases, it’s cheaper to buy an existing home than to build a new home, according to data compiled by the National Association of Home Builders.2 Although, the cost can vary widely depending on the location and the kind of home you want. Expenses can add up quickly when you start customizing a new home.

Considering a construction loan?

If so, be prepared to meet a variety of qualifying factors that can include credit history, credit score and debt-to-income ratio. You can strengthen your ability to qualify by taking steps to build and maintain a solid credit history and score prior to applying for a loan. And you can monitor your credit score for free with our tool if you’re a U.S. Bank customer. A mortgage loan officer can help answer any questions and see if you qualify.

Learn more about construction loans

Buying a bigger house vs. downsizing your home

Depending on your current needs, you may be thinking of upsizing or downsizing your home. Maybe you need more space for a dedicated home office. Or perhaps you’ve just retired and no longer need a house close to work. Read on to learn more about purchasing a home that’s better suited to your current situation.

Thinking about buying a bigger house?

If you’re squeezed for space, have other plans for the square footage or you’re growing your family, you might be ready for a larger home. Here are some things to keep in mind.

Cost

A bigger house often comes with added expenses — a bigger mortgage and higher property taxes, utilities and homeowners insurance — all important things to be aware of before you commit to upsizing.

Upkeep

The upkeep of a larger home tends to be greater than that of a smaller home. It can be time consuming to manage extra cleaning, yard work or seasonal maintenance.

Space

Maybe a relative is coming to live with you, or you’ve decided to add a home office or rent out part of your house. These are all common reasons that may warrant a larger footprint.

Learn why home affordability is about more than just how much you can borrow and compare rates for a variety of home mortgage options.

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Is the time right for downsizing your home?

If the costs and upkeep of your home are becoming too much and the space just isn’t utilized like it once was, you might be ready for a smaller house. Here are some things to keep in mind if you’re thinking about downsizing your home.

Cost

Moving to a smaller home could leave you with some extra cash in your pocket for traveling, hobbies or a future “rainy day” fund. This is because the expenses on a small home (your mortgage payment, utilities, maintenance, etc.) are typically less than those of a large home.

Upkeep

A smaller lawn (or no lawn at all) is much easier to care for and doesn’t take as much time as you may be used to. Plus, the less square footage inside your home means the less time you’ll spend cleaning which makes upkeep much more manageable.

Space

If you find yourself with unused space after your household has changed, a smaller home may sound appealing. Or maybe you’re planning to retire and spend more time away from home traveling. These are just a couple of reasons why a smaller home might better suit your needs.

Find the right loan for your unique needs.

Every home buyer’s situation is different, and your mortgage should be tailored to fit. Whether you’re considering buying a bigger house because you’ve outgrown the one you have, or downsizing your home because it’s outgrown your needs, we’ve got you covered.

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Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.

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  1. U.S. Census Bureau. “Average Length of Time from Start to Completion of New Privately Owned Residential Buildings, U.S., https://www.census.gov/construction/nrc/pdf/avg_starttocomp.pdf.” Accessed August 31, 2021.

  2. National Association of Home Builders. "New and Existing Single Family Home Prices, U.S., https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics/sales/median-prices.pdf.” Accessed August 30, 2021.