Homeowners these days are faced with countless decisions when approaching the renovation of their new home but one that’s rarely considered is whether it’s financially worth it to stay where they are. In a construction market gone wild the cost of renovating has escalated to unprecedented levels. It’s something one needs to reflect upon before embarking on a project.

Phil Lamadeleine, Senior Designer of Custom CADD, has provided countless consultations over the last decade and feels there’s tremendous confusion about construction budgets. People generally don’t realize the high cost of building these days, the thought is that $100,000 will get you a lot, but it doesn’t. Construction costs are likely the most pressing issue for most homeowners and it’s essential that expectations and budget are realistic prior to making a decision. These decisions may vary from moving forward with an addition, demolishing and starting new or even selling the home to move elsewhere.

Most people considering renovations generally like where they are and want to make it work so the decision becomes to renovate or demolish and build new.

A small renovation, or one that has little direct effect on the existing home, is the most logical to carry out. As the scope increases and the renovation becomes more involved, the client needs to take a more serious look and decide whether it’s worth it. A big renovation on an older home is not usually done to save money, it’s usually cheaper to build new.   Large renovations are done for other reasons.

More often than not, there are more basic reasons why a homeowner may choose to renovate than move or build new. Recently, we were approached by a client that had purchased a 35 year old custom home. The home needed serious updating but it's location, view and private rear yard backing onto environmentally protected land was beautiful. The existing home had an interior pool, and a solid foundation.  They were already invested heavily in having purchased the property and knew the neighbourhood was where they wanted to be. “The location was perfect for us”, explains Mirna the homeowner, “to have found a house we wanted on a property like this would have cost us much more money.” The client and ourselves went through the wish list and realized a renovation was a sensible way to go. “It’s always a balancing act when a renovation gets this big”, states project designer Phil Lamadeleine, “The scope on this project is big, but not big enough, to warrant tearing down the existing house.” (see example)

If you’re contemplating a renovation, it’s worth the consultation about your budget and wish list right from the start. Suggestions may be to proceed with the renovation, scale down the wish-list, phase the project, or indeed, move but, in the end, you’ll be armed with the best information to make the proper decision for your house and your pocket book.