Should You Remodel, Add-On, Build or Buy a New House?

Feb 17, 2025 3 min read

Once upon a time, your home was big enough for your family. But lately it’s been feeling tight. Or maybe lifestyle changes call for some house layout changes, too. 

Now you’re faced with questions: should we buy a new house or remodel? Is it better to renovate or buy a house? Moving is always a big decision, so adding on to your house could be a good alternative. Yet money is often a factor. Is it cheaper to add on or to build your home? How can you make the decision build an addition to your house, find a new one or build one that fits your needs perfectly? 

This is a huge decision that can take up a lot of your time and your money, so it’s important to get it right. Here are some factors to consider when you’re ready to upgrade your space, and some reminders about risks and rewards.

Reshaping Your Space: Choosing to Remodel

A remodel of just one or two rooms can revamp an outdated floorplan or improve on the use of space. If you’re coveting a larger kitchen, for example, maybe you can expand your current one into your rarely used formal dining room. Or maybe you can refinish the basement or convert your garage or porch into a living space. 

But as you’re getting excited about the possibilities, don’t forget: No matter your vision, you could run into needed updates that must take priority over bigger plans. Furthermore, not all ideas for a remodel can be executed. Some walls or beams have to remain intact for structural purposes. Any bathroom expansions or additions should integrate with your existing plumbing columns to keep costs low. 

One more thing: When you’re considering any remodel, consider whether the changes will increase the value of your home. That will help you decide whether to invest in the project or go in a different direction.

Let’s Expand: Deciding to Add On

Building on to a current house is a great way to add additional rooms, expand an existing space or even create a sunroom. But it’s not as easy as just throwing up a new structure. You’ll have to comply with all building codes for your community, for one. And make sure you consider whether an addition will fit the aesthetic of your home and build equity

When planning an add-on, factor in all costs associated with expanding a foundation and integrating your home’s current support structures, roofing, wiring and HVAC. Do your research. The price tag on an addition can quickly skyrocket and make it less economical than buying a different place. 

If you choose to go the add-on route, remember your insurance policy, too. An addition is a life change you’ll want to tell your Farm Bureau agent about for purposes of updating your coverage.

Trading In: Buying a New House

When you’re looking for a change, shopping for a new-to-you home allows you to scour your target community for the right size, layout and number of bedrooms and bathrooms. A new house might be out there that suits your needs perfectly — and doesn’t require any complicated construction. 

But there are downsides. You may not find the exact style you’re looking for, of course. You may also end up facing the same conundrum about whether to remodel the house. (Watch for these money pit red flags.) 

And sometimes buying a house isn’t practical for reasons outside your control. Your community’s current housing market is a big factor. If prices are soaring, you might want to stay put rather than taking on additional debt. Then again, if you’re considering selling in a community with a high demand and moving to one with lower housing prices, then a new purchase might be the best option.

A Fresh Start: Building a Home

Building is a great choice if you want a completely customized space. You get to decide what you want your house to be like and how you want it to look. But building a new home is not without its challenges. Building takes more time than doing a simple remodel, putting on an addition or even just moving to a new home. Building also involves an immense amount of decision-making. 

That said, if you’re prepared to go over every detail from decorative trim to cabinet pulls, then building is for you. Of course, remember that all those details can quickly tally up as unexpected costs. But you may decide that having a place that truly fits your needs and style is worth the extra cost and work.

Get the Insurance You Need

Whether you buy, build or remodel, be sure to keep your Farm Bureau agent in the loop. They will be able to do a SuperCheck® on your insurance and make sure you have the right level of coverage for your home.

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.