Whether you own a family home or you are a real estate investor, making the decision to rebuild or remodel can be a difficult one. When you have a property that needs a lot of work it becomes necessary to make a decision. Do you knock it down and rebuild from scratch or remodel the entire home to make it suitable for living or resale? Regardless of how you may have come into such a property, there are many things to consider carefully before making this decision.
The key is to choose the option that is going to give you the most return on your money, and that is going to make the most financial sense overall. You also want to consider the needs of your family if it is a family home. Consider the property value without the house on it. Is it worth it to rebuild completely? Consider also the cost of remodeling. Would it be that much more expensive to start from scratch?
There are some other things to consider as well. How much remodeling needs to be done? If walls need to be removed or repaired, plumbing needs to be completely redone, or floors are uneven, it may make sense to start over and rebuild. If the foundation is going to need to be repaired in addition to other major remodeling, you definitely want to consider rebuilding. It costs a lot of money to repair a foundation, if it can be repaired at all. If you want the home to last many years to come, this is an important consideration.
In general, if the remodeling is going to cost nearly as much as rebuilding from scratch, you may be better off doing just that. However, at the same time you do not want to jump to that conclusion. If a home is livable but needs some tender loving care, it may make more sense to remodel one room at a time than to boot yourself out of your own home in order to rebuild. It is easier to live without one room than an entire house. In addition, if something needs to be remodeled that requires you to leave the home, you may do so for a few weeks rather than several months.
Overall, you want to do what makes sense for you and your family if you are looking at a family home. If you are a real estate investor, you want to go for the decision that makes the most financial sense. If you can resell or rent for a higher price by rebuilding, then it makes sense to take that route. However, if the housing market only supports so much value, it would then make more sense to take the less expensive route of remodeling.