Renovate vs Move Decision Engine

Moving a home in the US costs $15,000-$40,000 in realtor commissions, closing costs, title insurance, and moving expenses alone. A major renovation such as an addition or attic conversion costs $50,000-$150,000 but adds significant value. Renovating is often cheaper when total transaction costs are factored in.

Hidden moving costs include realtor commissions (5-6% of sale price), closing costs (2-5% of purchase price), title insurance, home inspection fees ($300-$600), mortgage origination fees, and the cost of furnishing and decorating a new home. These can total $25,000-$60,000.

Closing costs on a $400,000 property typically run $8,000-$20,000 for the buyer. Seller costs (realtor commissions) add another $20,000-$24,000. Combined buyer and seller transaction costs on a typical home sale run 8-10% of the sale price.

A well-planned renovation typically recovers 55-75% of its cost in property value. Attic conversions add 15-20% to property value, additions add 10-15%, and kitchen remodels add 5-10%. However, over-improving beyond the neighborhood average yields diminishing returns.

Moving is better when your location no longer suits your needs (schools, commute), the property cannot physically accommodate what you need (e.g. condo needing a yard), or when renovation costs exceed 30-40% of the current property value. Structural limitations like low ceilings or flood risk cannot be renovated away.

Attic conversions offer the best return at 15-20% added value for $50,000-$100,000 investment. Kitchen remodels recover $1.50 for every $1 spent. Bathroom updates return $1.20 per $1. Additions add 10-15% value. Energy efficiency improvements (insulation, heat pump) increasingly add value as buyers prioritize running costs.

You are ready to renovate when you have a clear budget with 10-15% contingency, at least three comparable quotes, confirmed building permits if required, a realistic timeline, and a plan for where you will live during major works.

A proper building quote should include itemized costs for materials and labor, a detailed scope of work, start and completion dates, payment schedule, license information, warranty terms, and proof of insurance.

You are ready when you have 3-20% down payment saved, 2-5% closing costs, 3-6 months cash reserves, stable W-2 or 2+ years of 1099 income, FICO above 620, a mortgage pre-approval letter, and a real estate agent lined up.

70-75% annually is average.

For end-of-tenancy, deep cleans, large properties, or when your time is more valuable than the cleaning cost.