The anticipation is over—2024 brings sensational news that will reshape your path to homeownership! 🚀 Get ready for a breakdown of the game-changing conforming loan limits that promise to make your housing dreams a reality! 🏡✨

🏠 **Single-Family Homes:** $750,000 (up from $726,200 in 2023)  

🏠🏠 **Two-Unit Properties:** $960,300 (up from $929,850 in 2023)  

🏠🏠🏠 **Three-Unit Properties:** $1,160,700 (up from $1,085,850 in 2023)  

🏠🏠🏠🏠 **Four-Unit Properties:** $1,442,500 (up from $1,396,800 in 2023)

These exciting adjustments spell out new possibilities for your homeownership journey. 🌈 Whether you're envisioning a dreamy single-family home or contemplating a savvy multi-unit investment, the expanded limits create a buffet of options! 🛤️💼

Seize this golden opportunity! Dive into the realm of financing options, and we're here to guide you every step of the way. 📞💬 Transform your homeownership dreams into a living reality!

Here's to a radiant and more budget-friendly 2024! 🥂🏠

The National Association of Realtors® (NAR) has made a significant adjustment to its commission policy, known as the Participation Rule. This change now permits listing brokers to offer buyer brokers a compensation of $0 when listing a home in any of the 500 Realtor-affiliated MLSs across the U.S.

Previously, NAR's Participation Rule mandated listing brokers to provide buyer brokers with some form of commission, even if as minimal as one penny. With two class action lawsuits on the horizon, NAR has modified the rule's specifics.

According to NAR spokesperson Mantill Williams, "NAR’s MLS policy requires participants to communicate an offer of compensation to other MLS participants, and that offer can be any amount, including $0."

NAR insists that this alteration emphasizes transparency in commission dealings between brokers and clarifies that it doesn't mandate MLSs to change their data fields for $0 compensation.

**Ensuring Efficiency Amidst Change**

NAR asserts that its policies aim to efficiently distribute information for real estate transactions' benefit to both buyers and sellers. According to Mantill Williams, NAR spokesperson, these policies prevent brokerages from relying on inefficient, piecemeal information that could negatively impact their ability to serve clients and the U.S. economy.

Despite criticism, NAR maintains confidence that the upcoming trials will not sway the jury with any confusion. The association downplays the about-face, arguing that there's no evidence of the alleged price-fixing.

**NAR's Shifting Stance: From "Not Zero" to "Any Amount, Including $0"**

Historically, NAR asserted that listing brokers could offer buyer agents "as little as" one penny or one dollar for commission. Now, just before trial, they allow $0, prompting speculation about potential confusion in NAR's strategy.

This change has led some, like Redfin, to question NAR's interpretation, stating, "That is not our understanding of how NAR has interpreted their policy in the past and appears inconsistent with prior reporting."

As the real estate landscape undergoes these shifts, we'll continue to provide updates. Stay tuned for more developments.

Understanding Homestead Exemption and Property Taxes in South Florida

South Florida is a popular destination for homeowners due to its beautiful beaches, vibrant culture, and favorable climate. However, when it comes to owning property in the Sunshine State, it's essential to understand how property taxes and the homestead exemption work. In this blog post, we'll delve into the details of these crucial aspects of homeownership in South Florida.

What is Homestead Exemption?

The homestead exemption is a property tax relief program offered to permanent Florida residents who own and occupy their primary residence. This exemption provides eligible homeowners with a reduction in the assessed value of their property for tax purposes, ultimately lowering their property tax bills.

Here are some key points to understand about the homestead exemption in South Florida:

1. Eligibility Criteria:To qualify for the homestead exemption, you must meet certain criteria:

   - You must be a permanent Florida resident.

   - The property must be your primary residence as of January 1st of the tax year.

   - You must apply for the exemption between January 1st and March 1st of the tax year.

2. Exemption Benefits: The homestead exemption can provide significant benefits to homeowners. It reduces the assessed value of your property by up to $50,000, resulting in lower property taxes. For example, if your home is assessed at $300,000 and you qualify for the full $50,000 exemption, you will only pay property taxes on an assessed value of $250,000.

3. Save on Taxes: The homestead exemption can save homeowners hundreds or even thousands of dollars on their annual property tax bills, making homeownership in South Florida more affordable.

How Property Taxes Work in South Florida

Property taxes in South Florida are used to fund essential services such as schools, public safety, infrastructure, and local government operations. Here's a breakdown of how property taxes are calculated in the region:

1. Assessed Value: Property appraisers determine the assessed value of your property. This value serves as the basis for calculating your property taxes. It is important to note that the assessed value may increase by up to 3% per year under the "Save Our Homes" cap for homesteaded properties, even if the market value increases at a higher rate.

2. Millage Rate: Local governments set a millage rate, which is a tax rate per $1,000 of assessed value. The millage rate can vary between different counties and municipalities within South Florida.

3. Calculating Property Taxes: To calculate your property taxes, multiply the assessed value of your property by the applicable millage rate. For example, if your home's assessed value is $250,000 and the millage rate is 10, your annual property tax bill would be $2,500 (250,000 x 10 / 1,000).

4. Additional Taxes: In addition to regular property taxes, there may be additional taxes for specific purposes, such as school district taxes or special assessments for community improvements.

Understanding the homestead exemption and property taxes is essential for homeowners in South Florida. The homestead exemption can provide valuable tax savings, making homeownership more affordable for permanent residents. Additionally, knowing how property taxes are calculated helps homeowners budget for their annual tax bills.

If you're a homeowner in South Florida, take advantage of the homestead exemption to reduce your property taxes, and always stay informed about any changes in tax laws or rates in your local area. Being knowledgeable about these aspects of homeownership will help you make informed financial decisions and enjoy the benefits of living in this beautiful part of the Sunshine State.

Interest rates play a pivotal role in the real estate market, influencing everything from housing affordability to investment decisions. As a prospective homebuyer, seller, or real estate investor, understanding how higher interest rates can affect the real estate market is crucial for making informed decisions. In this blog post, we'll delve into the relationship between interest rates and the real estate market and explore the potential consequences of rising rates.

**1. Mortgage Affordability**

When interest rates rise, the cost of borrowing money increases. This means that monthly mortgage payments for homebuyers will also go up. As a result, some potential buyers may find it more challenging to qualify for loans or afford the homes they desire. This can lead to a decrease in demand for real estate, particularly in higher-priced markets.

**2. Impact on Home Prices**

Higher interest rates can put downward pressure on home prices. As mortgage affordability decreases, sellers may need to adjust their pricing expectations to attract buyers. In some cases, this can lead to a slowdown in home price appreciation or even modest declines in certain markets. However, the extent of the impact can vary depending on other factors such as local demand and supply conditions.

**3. Refinancing Activity**

When interest rates rise, homeowners who previously refinanced their mortgages to take advantage of lower rates may see less incentive to refinance. This can result in a reduction in refinancing activity, impacting the mortgage industry and related businesses. Mortgage lenders and refinancing companies may need to adapt their strategies in response to changing market conditions.

**4. Investment Decisions**

Real estate investors often consider interest rates when making investment decisions. Higher rates can lead to higher borrowing costs for investors, potentially reducing their profitability. Investors may need to adjust their investment strategies, such as targeting properties with stronger rental income potential or exploring alternative investment opportunities.

**5. Market Psychology**

Perceptions of rising interest rates can influence buyer and seller behavior. Buyers may rush to purchase homes before rates climb further, leading to increased demand in the short term. Conversely, sellers may be more inclined to list their properties in a rising rate environment, hoping to secure favorable selling conditions before rates impact affordability.

**6. Regional Variations**

It's important to note that the impact of higher interest rates on the real estate market can vary by region and market conditions. Some areas may be more resilient to rising rates due to strong local economies and high demand, while others may experience more pronounced effects.

**Conclusion**

Higher interest rates have the potential to influence various aspects of the real estate market, from affordability and home prices to investment strategies and market psychology. As a participant in the real estate market, staying informed about interest rate trends and their potential consequences is essential for making well-informed decisions.

While rising rates may introduce challenges, they are just one of many factors that shape the real estate landscape. The interplay of local market dynamics, economic conditions, and buyer-seller motivations will ultimately determine how higher interest rates impact specific real estate markets. Adapting to changing conditions and seeking guidance from real estate professionals can help you navigate the evolving real estate landscape successfully.

Condominiums, often referred to as condos, have become an increasingly popular choice for homebuyers seeking a harmonious blend of convenience, luxury, and community living. Whether you're a first-time buyer or considering a transition to condo living, this guide will provide you with a comprehensive overview of what condos have to offer and why they might be the perfect housing solution for you.

What is a Condo?

A condominium is a type of housing where individual units are owned by residents, while common areas and amenities are shared among the community. These shared spaces often include swimming pools, fitness centers, lounges, and landscaping, offering residents a maintenance-free lifestyle. Condo living is characterized by a sense of community, security, and often, a prime location within urban areas.

Benefits of Condo Living

1. **Low Maintenance:** One of the most significant advantages of condo living is the minimal maintenance required. Exterior upkeep, landscaping, and common area maintenance are typically taken care of by the condominium association, freeing up your time for other pursuits.

2. **Amenities:** Condos often boast a range of amenities, such as gyms, rooftop gardens, and communal spaces, giving residents access to facilities they might not have in a single-family home.

3. **Security:** Condos often feature security measures such as gated entrances, secure parking, and surveillance systems, offering residents peace of mind.

4. **Prime Locations:** Many condos are strategically located in vibrant urban centers or near major attractions, making it easy to access restaurants, shops, and entertainment venues.

5. **Sense of Community:** Condo communities often foster a strong sense of belonging, with opportunities to socialize and build lasting relationships with neighbors.

Considerations Before Buying a Condo

While condos offer many advantages, it's essential to consider some key factors before making a purchase:

1. **Association Fees:** Condo associations charge monthly fees to cover maintenance and amenities. Be sure to understand these fees and budget for them accordingly.

2. **Rules and Regulations:** Condos have specific rules and regulations that residents must adhere to. Ensure you're comfortable with the community's guidelines before buying.

3. **Resale Value:** Investigate the condo's history and its resale value trends in the area. A real estate agent can help you assess these factors.

4. **Amenities:** While amenities are a significant draw, make sure you'll use them to justify the fees associated with them.

5. **Future Developments:** Research any upcoming construction projects or developments in the area, as they can affect your property's value and quality of life.

Conclusion

Condo living offers a unique blend of convenience, luxury, and community that appeals to a wide range of homebuyers. Whether you're a young professional seeking an urban oasis, an empty-nester looking to downsize, or an investor eyeing a prime property, condos have something to offer. By carefully considering the benefits and factors outlined in this guide, you can make an informed decision about whether condo living is the right choice for you. Explore the vibrant world of condos, and you may just find your ideal home within these thriving communities.

The real estate market is a dynamic and ever-changing landscape that plays a crucial role in the lives of individuals and families around the world. Whether you're buying your first home, selling a property, or considering real estate as an investment, understanding the ins and outs of this market is essential for making informed decisions. In this comprehensive guide, we will explore key aspects of the real estate market, providing valuable insights for both buyers and sellers.

1. Understanding Market Trends

The real estate market is influenced by various factors, including economic conditions, interest rates, and local demand. As a potential buyer or seller, it's essential to stay informed about current market trends. Researching these trends can help you determine the right time to buy or sell to maximize your return on investment.

2. Financing Options

For most individuals, buying a property involves securing a mortgage. Understanding the different types of mortgages, interest rates, and financing options available can help you choose the best loan for your situation. Be sure to consult with a financial advisor to explore your options fully.

3. Working with Real Estate Agents

Real estate agents can be valuable allies in your property journey. Whether you're buying or selling, an experienced agent can provide market insights, negotiate on your behalf, and streamline the transaction process. Take your time to find a trustworthy and knowledgeable real estate agent who understands your needs.

4. The Home Buying Process

Buying a home is a significant investment and often an emotional journey. This section will guide you through the steps of the home buying process, from setting a budget and house hunting to making an offer, inspections, and closing the deal. Understanding each stage can help you navigate the process with confidence.

5. The Home Selling Process

If you're selling a property, it's crucial to prepare your home for sale, set the right price, and market it effectively. We'll cover staging tips, how to work with your real estate agent, and the process of negotiating offers. The goal is to ensure a smooth and successful sale.

6. Real Estate Investment Strategies

Real estate can be a lucrative investment opportunity. We'll explore various investment strategies, such as rental properties, real estate investment trusts (REITs), and house flipping. Learn how to assess the potential risks and rewards associated with each strategy.

7. Legal Considerations

Real estate transactions involve complex legal documents and contracts. It's vital to understand the legal aspects of buying or selling property, including contracts, inspections, and closing procedures. Consider consulting with a real estate attorney to ensure a smooth transaction.

8. Market Research and Property Valuation

Before buying or selling, conducting thorough market research and property valuation is essential. Learn how to assess the value of a property, analyze comparable sales, and identify potential red flags.

Conclusion

The real estate market offers a world of opportunities for buyers, sellers, and investors alike. However, success in this field requires knowledge, preparation, and careful consideration of various factors. Whether you're looking to purchase your dream home, sell your current property, or make strategic investments, this comprehensive guide will serve as a valuable resource to help you navigate the real estate market with confidence. By staying informed and making informed decisions, you can achieve your real estate goals and secure your financial future.

New Condo Laws for 2024

Condo Fees are on the rise!

Not sure if you have noticed but condo fees have been going up over the last year. Why are they going up?

Here are the reasons. 

1. Insurance rates have gone up.
2. In 2024, condos are required to fully fund their reserves for all major renovation projects for the next 30 years(when they come due)
3. Inflation

Be aware so you aren't blindsided when purchasing a condo in Florida!

Working with an experienced realtor is the best approach to buying or selling a property. A skilled realtor offers a high level of expertise to guide you through your real estate transaction so you can find the home you’re looking for or earn a high return on selling your property. 

Finding the right realtor is essential to a smooth real estate buying or selling experience, whether you are purchasing your dream home or trying to get top dollar for your property. Consider the following factors when choosing the right realtor for your real estate goals: their experience, qualifications, area of specialization, and commission fees. 

What is a Realtor?

A realtor is a licensed professional belonging to the National Association of Realtors (NAR). As a member of the NAR, a realtor promises to uphold the association’s code of ethics, including transparency, honesty and acting in the client’s best interests. 

A realtor helps you buy or sell your home by representing you throughout the process. If you’re buying a home, your realtor will:

• Educate you on the current real estate market in your area

• Locate properties within your budget for you to consider

• Help you negotiate an offer with the seller

• Accompany you during home inspections

• Connect with other professionals in the industry

• Ensure the closing goes smoothly and is stress-free

For those selling a home, a realtor will:

• Help you list your property

• Optimize your listing to get high offers

• Negotiate with buyers

• Assist you with closing activities 

How to Find a Realtor

Your first step in working with a realtor is to know where to look. One common approach to finding a realtor is to ask friends or family who they used. You can ask questions to see how their experience went and if they would recommend the realtor. 

You can also use online search tools to locate a realtor in your area. Look for realtors with excellent reviews and testimonials from former clients and reach out to them for an initial meeting. You can also take note of real estate agent signs in your area or attend local open house events to connect with a realtor. 

Factors to Consider When Interviewing Realtors

When you begin talking to realtors to make your final choice, it’s essential to consider the following factors. You can speak with your realtor to get a feel for how they work and if they are a good match for your needs and personality. 

Personalized Attention

When choosing a realtor, the personalized attention you receive plays an integral role in your overall experience. Buying or selling a home can be stressful, and you likely want someone with expert industry knowledge to be on the journey with you. 

Some realtors take a hands-on approach, while others use assistants to communicate with clients. When meeting with a potential realtor, ask them what type of interaction they have with clients. Verify that you’ll work directly with the realtor and how much contact to expect throughout the process.

Do they typically respond quickly to texts, calls, or emails? Are they personable and take the time to explain important aspects of the market? Do they personally accompany you during the home inspection and closing? Do they take care of issues behind the scenes to streamline your experience, such as negotiating with the seller’s agent or preparing documents, so they are ready to sign?

Experience and License

Any realtor you work with should have their state license to practice. In Florida, licensing requirements include:

• 63-hour Florida Real Estate Commission-approved course

• Submission of application and fingerprints

• Pass the Real Estate Sales Associate Examination

• Active license through a state-approved method

You also want to choose a realtor with experience in your buying or selling location. While a new or newly arrived realtor may be able to do the job, a realtor who has practiced locally is more likely to have connections and understand how the local housing market works. A local realtor can also recommend a school district or recreational activities if you are new to the area.  

If you are selling your property, a well-connected local realtor can recommend everything from general contractors to roofers to cleaning services to help you get your home market-ready. 

Bryan Gold is a realtor with Compass Real Estate and has over nine years of experience in South Florida. When you work with Bryan, you can expect a wealth of local knowledge to help you find the perfect neighborhood and home-improvement connections that ensure your home is ready to sell.   

Realtor Fees

Realtors’ fees are a major consideration when choosing your agent. Realtors typically charge transaction fees and commission fees. Your realtor should include their fees in your contract and discuss them with you upfront.

Realtor commission fees are negotiable, but most charge around 6% of the home’s sale price. If you are selling your home, you’ll likely be responsible for paying all realtor commission fees, so ensure you’re comfortable with their fee rate. 

Research Methods

What methods does the realtor use to research homes, determine list pricing, and perform comparative market analysis (CMA)? When choosing your realtor, choose someone comfortable using up-dated technology and digital tools for these tasks. 

For example, Bryan uses internet searches and specialized real estate technology to ensure his buying clients find the best homes at the best prices.  He uses the same methods for clients selling their property to experience a stress-free transaction and see a high return on the sale. 

Areas of Specialization

When looking for a realtor, consider their area of specialization or expertise. For example, some realtors work primarily in commercial properties, while others work with clients on residential transactions. 

If you are buying a home, find a realtor who specializes in helping clients purchase residential properties. Likewise, if you are selling your home, look for a realtor who is passionate about assisting sellers in getting the biggest returns on their property. 

Bryan specializes in helping clients sell homes and condominiums in South Florida. He enjoys providing a worry-free experience for sellers by walking you through a streamlined process. With Bryan, the experience begins with an initial discussion of your goals for selling your home. He then talks about pricing and performs a CMA for your property. 

Bryan and his team then help you prepare your home and list it for potential buyers. Through a special program with his parent company called Compass Concierge, Bryan can provide you with funds to improve your property, so it sells for maximum profits. He then walks you through the rest of the selling and closing process, making it as easy and simple as possible. 

Choose a Personable, Experienced Realtor 

Buying or selling a home is a significant undertaking. Choose a personable, experienced realtor like Bryan to ensure your transaction goes as smoothly as possible and you achieve your buying or selling goals. Bryan has guided his clients through the buying and selling process for almost a decade and is passionate about the real estate market in South Florida. 

Contact Bryan at (954) 464-3459 or bryan.gold@compass.com to get started today. 

When the time comes to sell your home, it is crucial to determine the property’s value. Knowing your home’s value lets you set a price that attracts buyers and gives you a significant profit on the sale. 

Explore why it is important to know the value of your home. Also, learn the factors that go into your home’s valuation and how to calculate your home’s value, so you are prepared when you move to sell in South Florida. 

How is Your Home’s Value Calculated?

A home’s value is generally calculated based on several factors such as the property’s age, size, condition, location, and comparable homes. 

Age

The age of your home factors into its market value. Older homes are typically valued at a lower price than newer homes. This is because older homes usually need updates or repairs to bring them up to the standard of newer homes. However, this may not apply if you own a historic home or recently remodeled it.

Size

Size matters when it comes to home value. Homes with larger square footage are valued higher than smaller homes. Buyers typically pay a per square foot price for a home, so more square feet equals a higher price. 

Size can also refer to the types of space in your home. Homes with finished basements, attics, and garages are valued higher than those with unfinished areas because they are considered usable space. Usable space elevates your home’s value, whereas unusable space may have a negative impact. 

Condition 

The condition of your home affects its value. Homes that are well-maintained or homes with significant updates or renovations are worth more than homes that are run-down or outdated. This is why many people put money into making home renovations before a home value assessment or selling. 

A home that requires a buyer to make significant replacements or repairs is not worth as much as a move-in ready home. 

Location

Location is a significant factor in determining a home’s value. Typically, houses located in upscale areas or near shopping or downtown entertainment carry a high value. The same goes for homes near parks, schools, libraries, hospitals, and other family-friendly and community amenities. 

Comparable homes

An important factor in home valuation is looking at comparable home values. This is typically done with a comparative market analysis (CMA). 

This tool uses several pieces of data to compare your home to other homes in the area, giving you an accurate idea of what your home is worth. If you work with an experienced local real estate agent, they can perform a CMA to determine the market value of your home before listing it for sale. 

In addition to these factors, your home’s value might be affected by trends in the national or local housing market, mortgage interest rates, and tax rates. 

Why You Benefit From Knowing Your Home’s Value

It is essential to know the value of your home, especially if you are thinking about selling your property. Without having an accurate estimate of the value of your home, you risk undervaluing or overvaluing your property which can affect your profits when you sell.  

Knowing your home’s value helps you set an attractive price for buyers, maximize sale profits and avoid low offers. It also gives you a cost-benefit analysis for making home improvements and helps you know when the time is right to sell. 

Set an attractive price

By knowing your home value, you can price your home to be attractive to buyers looking in your area. Pricing too high for your neighborhood can keep potential buyers away. Pricing too low can also cause your home not to sell because buyers may perceive something is wrong with the house. Pricing your property just right helps bring in buyers. 

Earn a profit on your home

Knowing the value of your home allows you to price your home to maximize profits. You can avoid low offers that don’t come close to the value of your property. You can profit from the home’s current value if you know its worth and don’t settle for less than that number. 

Home improvements

Home improvements can increase the value of your home when you go to sell. It is important to know your home value to determine if you should renovate or sell as-is. If your return on investment (ROI) is significant and you can bring in more money with a minor update or renovation, it may be worth investing in home improvements to bring up your home value. 

Determine sale timing

Recent increases in home values have shown that knowing your homes’ value is essential in determining when to sell. If your home’s value is rising, selling it may be a good idea. If your home’s value has decreased, you may need to adjust certain factors before you sell. 

Determining Your Home’s Value

There are a few different ways to determine your home’s value. You’ll want to incorporate a few different methods to gain an accurate estimate of your home’s fair market value (FMV).

• Use an online home value estimator tool. Input your address or other requested information to gain an initial number. 
• Work with a local real estate agent to obtain a comparative market analysis for your home.
• Hire a professional appraiser to perform a home appraisal. This will give you an appraised value rather than FMV, but it can still factor into your pricing.
• View your county’s appraisal website. It should list your home’s assessed value that you can use to determine the overall value.

Work With a South Florida Realtor to Sell Your Home

If you are looking to sell your South Florida home, work with a knowledgeable local realtor. Bryan Gold has over eight years of experience in the South Florida real estate market. Bryan can help you get an accurate estimate of your home’s value with a CMA so you can maximize profits from the sale of your property. 

Contact Bryan today at (954) 464-3459 or bryan.gold@compss.com to discuss your goals for selling your home and determine the market value of your home. 

If you’re thinking about a change of scenery when it comes to your living space, you may consider renovating your existing property or buying a new house. Both options allow you to live in a fresh, exciting space, but they also come with certain considerations and costs. 

When deciding between renovating your existing house or buying a new one in South Florida, it is important to explore each option thoroughly. Consider how renovating versus buying may impact your finances and future plans. Learn everything you need to know about buying versus renovating so that you can make the best choice for your situation. 

Consider the Costs

Renovating and buying a new home requires a significant financial investment. While the average home renovation project costs around $13,000, a full-scale renovation can cost closer to $15,000 to $200,000, depending on your home and the project’s scope. 

Buying a home in South Florida is no less expensive. The median sale price in the tri-county area is around $435,000 for a single-family home and $235,000 for a condominium unit. 

Although renovating may seem like the less expensive option, it is not always the case. Renovations often run into unforeseen complications that drive up the cost. The long-term value of a renovation also hinges on the quality of the renovation work. If your contractor does shoddy work, you may end up spending more money to fix the problem than you would have after buying a new property. 

You likely need to have the money upfront to fund the work to renovate your home. This is not the case with purchasing a property. While you need enough money upfront to cover downpayment and closing costs, you can buy a home with a mortgage loan and make smaller monthly payments over several years. 

Finally, despite the higher median cost of buying a new home, you can work with an experienced local realtor to help you find the right property at a lower price. If you can purchase a new home for close to the same price as your potential renovation expenses, it may be a better choice to buy rather than renovate. 

Time Commitment

When choosing between renovating your existing home versus buying a new property, it is essential to consider the time commitment each requires. This will help you decide which option fits in with your lifestyle and goals. 

Purchasing a new home takes about 50 days on average. Most sellers are eager to get the ball rolling as soon as possible. As long as your finances are in order and there are no surprises on the home inspection or at closing, the entire process is complete within one to two months. This means that you can move into your new space in just a matter of weeks. 

Renovations, on the other hand, can take much longer. A full-scale kitchen remodel can take between three to five months. Adding space, such as a garage or features like a fireplace, can take up to six months, and major renovation projects can take between six months to one year.  

Consider also that you may experience interruption to your daily life for much of the renovation time. You’ll likely deal with loud construction machinery, constant questions regarding design and materials, and contractors coming in and out of your house. You may have to live in another location until bigger projects are complete. 

Future Plans

Your future plans play a large part in helping you decide whether to renovate or buy. If your current home is where you plan to stay for the long term, renovation may be the best option. For instance, if your home is in an ideal location or part of your family legacy, renovating it to add updated features or repairing deteriorating elements is a good investment. 

If you don’t plan to stay in your current home for decades to come, purchasing a new property is likely the better option. By buying new, you avoid the hassle of planning and designing a renovation project, finding and hiring contractors, and living with the chaos that a renovation can bring to your life. Purchasing a new home is a good option if your future plans include:

• Moving to a modern, luxury home

• Downsizing your family

• Growing your family

• Moving to a new city or county

• Growing equity on a newer property 

Long-Term Benefits

The long-term benefits you gain from renovating versus buying new should factor into your final decision. When choosing which financial investment is the better option, you’ll want to look at the return on investment (ROI) you can gain from the venture. 

A nationwide survey from 2019 reports a wide range of renovation projects and their average ROI. According to this list, your expected ROI on various renovations are as follow: 

• Mid-range kitchen renovation - 80.5% 

• Bathroom addition - 58.1%

• Mid-range bathroom renovation - 67.2%

• Upscale kitchen remodel - 59.7%

These numbers show that you can only expect to recoup between 58% and 81% of the costs you put into these renovations. So, while renovating your home may be worthwhile in situations where you want to stay in the property for the long haul, renovating to earn a higher ROI is not the best choice. 

Alternatively, buying a new home in the current market can result in a significant payoff down the road. Home values in Florida skyrocketed 19.5% in 2021 and are expected to see continued growth of 11% in 2022. 

Investing in a new property is a sound financial decision if you plan to sell your home. You gain equity over time, and when you go to sell, you will likely receive much more than you paid for the property. 

Consider Your Finances and Long-Term Plans to Make the Right Decision

Choosing to renovate your current home or buy a new one is a major decision. Both options give you a sense of newness in your living space, but they also require a significant investment. In many cases, buying a new home is preferable to renovating because it yields better long-term benefits. 

If you are ready to find your new home, work with South Florida realtor Bryan Gold. Bryan has over seven years of experience in the South Florida real estate market. He enjoys helping people find their ideal home in the area. Contact Bryan at (954) 464-3459 or bryan.gold@compass.com to start searching for your perfect home today.