At what point are repairs on your home more than it’s worth

There is a point when you need to say “it’s not worth it” in home repairs. I am working with a couple in Canon City, Colorado, whose home was damaged by flooding caused by a neighbor’s actions. They are suing the neighbor and his insurance company and originally they just wanted their home back to normal. Due to the nature of the damage which is movement of the foundation, causing interior and exterior damage all the way to the roof. The cost of repairing the home will reach nearly the amount the home is currently worth.

Once the repairs are completed they will still have a 30+ year-old home, worth no more than it was before. The windows will still be old and inefficient, the walls will still be poorly insulated by todays standards, they will still have a formal living room that gets little use, because it is inconsistent with their current lifestyle. The exterior will look like a home that was built in the 70’s.

Each solution has it’s pro’s and con’s, they must choose the best option for them, I can only lay out the options.

Doing the repairs will require the least amount of inconvenience for them. They can live in the home and while some furniture and knickknacks may have to be packed up and moved it will not require them to relocate.

Knocking it down and rebuilding means they will have to relocate for 6 months, rent and two moves, but they will have a new efficient home in their own neighborhood. The neighborhood is filled with dated homes that will bring down the resale value of their new home and the floor plan will be somewhat limited by the existing footprint.

Selling the home for a discounted price and buying another home, means they can move quickly and put their home on the market, then hope they can find a buyer willing to take on and repair the issues. The problem here is, piece of mind, they know the problems their old home has, can they trust buying another home. Yes, having a home inspection would help to ensure the home won’t have issues, but after what they have been through will that be enough to assure them?

Selling the home and building a new one in a new neighborhood, they could stay in the damaged home until the new one is built and move in to a brand new, energy-efficient home that is everything they choose with a much smaller energy bill. At their age this will most likely be the last home they purchase. They will still need to sell their damaged home and hope for a buyer that is willing to do the repairs, but the piece of mind knowing it is a new home with warranties might be worth it.

A decision can’t be made until we know what happens in court with the insurance company, but these are things they need to think about to make an informed choice. There is never just one answer, Which would you choose?

www.apachecreekbuilders.com

Charlie Kattnig owner of Apache Creek Builders serving Southern Colorado offering remodeling services as well as building energy-efficient homes