Decisions to Move or Remodel are Full of Emotional and Financial Hurdles

You’ve come to the conclusion that you need a bigger house. Now the question is, remodel or move?

There are a number of things to consider before coming to a final decision. If you love your home and neighborhood, it’s close to work, the children are entrenched in school and all you want is a little more space, remodeling might be the answer.

But if you can find a new home with all the features you’d like to have in your current one, moving is likely the best choice. Not only will you get what you’ve been looking for, you’ll also avoid the stress of dealing with contractors and plaster dust for as long as the remodeling project takes.

Basically, the decision to remodel or move comes down to emotions and finances. Both are powerful forces, and there is no single motive for each choice. You can get help and estimates from contractors and real estate agents, but ultimately the decision is yours. If your house can’t physically be expanded because of logistics or zoning laws or the like, planning an addition doesn’t make much sense. On the other hand, even if you’re able to expand your home, that doesn’t mean it’s a sound financial decision because of the up-and-down ride of the current housing market.

Selling, buying, financing and moving will cost you about 10 percent of the sales price of your old home. So if you have a $150,000 property, can you make the improvements you need for less than $15,000? Before you decide on any major home improvement project, there are several questions to consider. Home values have changed significantly in recent years so you’ll need up-to-date information about how much your home is worth. You want to make sure that any remodeling you’re considering won’t over-improve your home, making it difficult to re-sell. You also want to know how much of your remodeling investment you’ll be able to recover if you do decide to sell in the future.

Even with the increase in home value that a renovation can bring, there are some things you can’t control, such as property size, topography and the overall look of the neighborhood. If those are the things bothering you about where you live, no amount of paint or extra room is going to remedy that situation.

The bottom line will likely be the deciding factor for you, but a home is much more than a standard purchase. It’s an investment with a lot of emotional ties. So an answer to The Clash hit single of “Should I Stay Or Should I Go,” at least when it comes to housing, boils down to two things. If remodeling your home makes the best financial sense and would make you happy, then stay. But if a renovation project at your current home still wouldn’t meet your needs, then it’s time to go.