Forget to be or not to be—to renovate or build, that is the question going through many Dallas homeowners’ minds today. To that end, we’ve asked Dallas’ top builders (and a few of their clients) to put their cards on the table and lay out the case for keeping the old or going bold with new construction. Our hope? When it’s time for you to make the big decision, you’ll come to the table with an ace up your sleeve.
Hedge Your Bets
A few things to consider before rolling the dice.
The Bankroll
Money always plays a major role in life-changing decisions, and this one’s no different. Before focusing on the future, take stock of the present, advises Taylor Stark of Stark Homes. “Consider how much you owe on your current home, what your current debt structure looks like, and the annual real estate property-tax difference between a new home and an older home,” he says.
Next, find people who will be candid about the true costs of what you’re trying to achieve. “Creating a functionally appropriate home may require substantial disruption of an existing floor plan and present a need for added square footage,” says Taylor McCabe of Mosaic Building Co. “These robust structural adjustments, coupled with desired finish-out, can often push a budget to a point where the value of the delta must be considered.”
Heather Lee of Endurance Homes concurs: “Renovations can be unexpectedly pricey. Sometimes starting fresh is more cost-effective in the long run.” Especially when it comes to the No. 1 consideration: return on investment. “That’s especially important in this economy,” notes Avandon’s Bob Tabesh. “On average, for every dollar invested in new construction, the lot value should increase by $1.10. However, when it comes to spending on the house itself, value added is limited—the increase in value is typically around $0.33, due to factors like the age of the house, which affects depreciation on elements like the foundation, plumbing, mechanical systems, and electrical components.”
The House Edge
If all that sounds a bit cold, take heart: There’s room for a little sentiment here, too. Stacy Brotemarkle of Bella Custom Homes argues that if you’re planning to make your fixer-upper your fixed address for years to come, that’s a big plus for making a big investment. Think hard about the factors that aren’t easily replicated, like a good street, family history, incredible neighbors, retail relationships, and stellar schools and churches. “Buying a new home in another area essentially means starting over,” explains Stephan Sardone of Sardone|McLain.
As do many of her colleagues, HRS Build’s Harriet Reisman-Snyder has clients who come to her for thoughtful solutions that will allow them to stay in a home currently not meeting their needs. When it becomes clear that moving isn’t an option, she collaborates with them to figure out how they can get all the updates and personalized elements while preserving all the good stuff—namely the original character and flavor.
Location can’t be everything though. “I love a remodel if the house deserves it. Many times there are amazing details worth saving,” says Kurt Bielawski of MORE Design + Build. “I like to ask my clients what they like about the house, and if the answer is, ‘I love the neighborhood,’ or, ‘I love the property,’ but they don’t say anything about the house? They’re probably good candidates for new construction.”
The Double Down
Sure, the prospect of everything being new and under warranty is exciting, but new construction comes with its own headaches. Our panel says you don’t know the meaning of overload until virtually anything is possible. “You have more latitude on designing floor plans and addressing elevation changes,” says builder Charles A. Barnett III of building new. “But you’re probably going to spend more money overall, and building comes with more decisions than anyone can possibly imagine.”
That leads to the whole “time is money” thing. Prepare to spend a whole lot of both. “The level of commitment and personal time that is needed during architectural design, interior design, and budgeting is substantial—and that’s before the build even begins,” says Nam Phan of Beechwood Custom Homes. “There are so many design features and options to navigate that it can be overwhelming. Often, clients experience FOMO, so they put a lot of pressure on themselves to not make the wrong decision, and then they start to second-guess themselves.”
Does confusion make it difficult to control costs? Sure. Is time precious? Of course. Is holding on to your sanity important? You bet. Still, Mickey Munir of Sharif & Munir Custom Homes Inc. says the pain will be worth it. “You’ll get what you want down to every last detail, and your money is spent in the areas most important to you. It’s pretty rewarding.”
The Shuffle
Whether you decide to stay or go, know that hiring a moving van is most likely in the cards. That’s right. Depending on the scope of the remodel, you may have to hit the bricks. “We highly recommend moving out of the home while construction is underway,” says Ferrier Custom Homes’ Heather Laminack. “Although it’s a hassle and expensive to temporarily move out, it significantly reduces the stress that comes with living in the middle of a work zone.”
That can mean finding a rental in close enough proximity that site visits and school drop-offs aren’t a chore, making do in greatly reduced square footage, and putting your surplus stuff into storage—not to mention the added expenses associated with all that. But take heart, once you’re done with either process, you can lose the moving company’s number and stop worrying about storage fees for decades. “No matter what, once the work is finished, it should look amazing for at least another 20 years,” says builder Bob Bobbitt of Bob Bobbitt Company Inc.
The Wild Cards
The only certainty that comes with construction is that nothing is certain. The timeline will go awry; the budget will need adjustment; materials will become hard to find. One undisputed pro of new construction? Surprises won’t include asbestos, black mold, or corroded pipes. “Once older homes are gutted to the studs, we find poor and outdated building standards that must be corrected, hidden mold issues, and outdated electrical and plumbing issues that must be brought to code,” says David Goettsche of Desco Fine Homes. “That can throw major wrenches in budgets, timelines, and emotions. It’s our opinion that remodel work is best suited for interior and exterior work with as little change to the foundation footprint as possible.”
But many builders stress that with high risk comes significant return. “Refurbishing an older home to meet contemporary standards can present greater challenges and costs compared to new construction,” says Peter Scott of Jim Scott and Sons Builders. “But the transformation of a historic dwelling into a modern, functional space that retains its character and narrative is akin to crafting a masterpiece.”
