The decision to remodel or relocate is a crossroads for many Colorado Springs homeowners. As your family grows or your lifestyle evolves, your once-perfect home may no longer meet your changing needs. With Colorado Springs’ real estate market continuing to fluctuate and construction costs evolving, understanding whether to invest in your current home or purchase a new one has become increasingly complex.
For years, Stewart Remodeling has been helping Colorado Springs families make the decision to transform their existing houses into dream homes. Our team offers expert craftsmanship and personalized renovation solutions that will have you appreciating your renovation for decades to come.
To Remodel or Relocate: The Current Real Estate Market in Colorado Springs
If you’ve been keeping an eye on the Colorado Springs housing market, you know it’s been on quite a journey in recent years. The pandemic-era housing boom sent prices soaring to unprecedented levels, making it increasingly difficult for many homeowners to decide whether to remodel or relocate. Even as the market has begun to stabilize, home prices in Colorado Springs remain significantly higher than pre-pandemic levels, with the median home price hovering well above the national average.
Even if you sell your current home for a good price, you’ll likely be paying a premium for your next one. When you factor in closing costs, real estate commissions, moving expenses, and the potential for property tax increases, the total cost of relocating can quickly surge the purchase price of your new home. For many homeowners, these market conditions make renovations increasingly attractive, allowing you to enhance your living space without taking on the costs associated with buying and selling.
Hidden Costs of Relocating
The financial implications to remodel or relocate extend well beyond the immediate moving period. When you purchase a new home, you might face higher property taxes, increased insurance premiums, and potentially higher utility costs depending on the home’s size and efficiency.
Additionally, there’s the matter of your mortgage rate to consider. If you purchased your current home when interest rates were lower, selling now means giving up that favorable rate and taking on a new mortgage at today’s higher rates, which could significantly increase your monthly housing costs. When you add up all these expenses, the total cost of relocating often exceeds homeowners’ initial estimates, making renovations favorable from a purely financial standpoint.
The Financial Benefits of Remodeling Your Colorado Springs Home
When choosing to remodel or relocate, renovations position you to capture several significant financial advantages. Certain home improvements may qualify for tax incentives, particularly those related to energy efficiency or renewable energy. For example, installing solar panels, upgrading to energy-efficient windows, or enhancing your home’s insulation might qualify for federal tax credits or local rebates, effectively reducing the net cost of your renovation.
Colorado Springs Utilities and the state of Colorado also offer various incentive programs that can further reduce your renovation costs while simultaneously lowering your ongoing utility expenses. Tax incentives, combined with savings, often make remodeling the more financially prudent choice for homeowners who are generally satisfied with their location but need their home to better accommodate their changing needs.
Popular Renovation Projects That Add Value in Colorado Springs
When weighing the option to remodel or relocate, certain projects tend to deliver particularly strong returns in our local market:
Kitchens
Kitchen remodeling consistently ranks among the most valuable improvements, with modern, functional kitchens often becoming the centerpiece of family homes. Upgrading to energy-efficient appliances, installing durable countertops like quartz or granite, and creating more open, flowing layouts can transform your daily living experience while adding substantial value to your home.
Bathrooms
Bathroom remodeling also delivers strong returns in the housing market, with updated primary bathrooms being especially valuable. Replacing outdated fixtures, installing more efficient toilets and showerheads, and creating spa-like atmospheres with modern tiling and lighting can dramatically improve your daily routine while appealing to future buyers.
Basements
Basement finishing or remodeling provides excellent value in our area, where additional living space is highly prized. A finished basement can serve as an office, additional bedroom, entertainment area, or multi-purpose space, effectively increasing your usable square footage at a cost significantly lower than building an addition or buying a larger home.
Outdoor Spaces
Outdoor living improvements are particularly valuable in Colorado Springs, where our climate allows for extended outdoor enjoyment. Adding or upgrading patio covers, custom decks, or outdoor kitchens lets you take full advantage of our region’s 300+ days of sunshine while adding considerable value to your property.
Financing Your Colorado Springs Home Renovation
Once you’ve weighed whether to remodel or relocate, your next consideration is how to fund your project. Fortunately, several financing options are available to Colorado Springs homeowners, each with distinct advantages depending on your financial situation and renovation scope:
Home Equity Loans and Lines of Credit
Home equity loans and lines of credit (HELOCs) remain popular choices because they typically offer lower interest rates than personal loans or credit cards. A HELOC provides flexibility with a revolving credit line you can draw from as needed during your renovation. In contrast, a home equity loan will provide you with a lump sum and a fixed interest rate.
For larger projects, a cash-out refinance might be worth considering if current rates aren’t significantly higher than your existing mortgage rate, as this option allows you to refinance your home for more than you currently owe and use the difference for renovations.
Financing for Energy Efficiency
For energy-efficiency improvements specifically, specialized green financing options may offer advantageous terms. Programs like Colorado’s C-PACE (Commercial Property Assessed Clean Energy) allow you to fund energy improvements with little or no upfront cost, repaying the amount through an assessment on your property tax bill over time.
Additionally, certain renovation projects focused on essential improvements or energy efficiency may qualify for FHA 203(k) loans or similar renovation-specific mortgage products, which let you finance both your home and improvements in a single loan.
Working With Professional Remodelers in Colorado Springs
After making the decision to remodel or relocate, the success of your project depends significantly on selecting the right partner. Colorado Springs offers many contractors and remodeling companies, but their experience, specialization, and approach to client relationships vary considerably. When evaluating potential partners for your project, look for established companies with strong local roots and a proven track record in the type of renovation you’re planning.
Experienced local remodelers, like Stewart Remodeling, bring invaluable knowledge about Colorado Springs building codes, permit requirements, and regional construction considerations like our climate and soil conditions. Plus, we have established relationships with local suppliers
Read Also: 5 Popular Home Addition Ideas for Colorado Springs Families Needing More Space
Take the Next Step Toward Your Ideal Colorado Springs Home with Stewart Remodeling
After weighing whether to remodel or relocate, many Colorado Springs homeowners discover that renovating offers the best path forward, providing the updated features and functionality they need while preserving their established community connections.
If you’re ready to explore how renovating could transform your current house into your ideal home, Stewart Remodeling is here to help. With deep roots in Colorado Springs and extensive experience with local home renovations, our team understands the unique challenges of remodeling in our region. Whether you’re considering a kitchen or bathroom update, planning to finish your basement, dreaming of enhanced outdoor living spaces, or contemplating energy efficiency improvements, we’d be delighted to discuss your vision and help you evaluate your options. Contact Stewart Remodeling today by giving us a call or by requesting a consultation. Let us help you transform your current house into one that meets your needs for years to come.