VOZ! Home Remodeling has a timely article on this topic, “To Move or to Remodel, this the question.” I just had to read that article.
They start out with a dose of humor – “You should definitely remodel”, since we do remodels! Just kidding . . .”
The article discusses the pros and cons of remodeling vs. moving in a down market. Some of the questions to be considered before making a decision are; Do you like where you live? What is the financial investment you stand to gain (or lose) down the road?
If your family loves your neighbors, the school, and the distance from work is just right, it would make more sense to stay put and remodel. Balancing enjoyment in your home and return on investment for a remodel will help in making a decision.
Pros and cons for remodeling vs. moving are copied here from the VOZ! Home Remodeling blog; use the link to go to their website and learn more!
• You will see at least some return on your remodeling investment when you go to sell your home.
• More functional home, plus you will increase everyone’s enjoyment of it.
• Makes your home fit your family’s lifestyle better.
• Stay in neighborhood/school district you like,
• Certain projects pay off more than others.
• Don’t upgrade beyond what your neighborhood is worth – a $500,000 home in a $200,000 area won’t return the cost of remodeling. If your home is already the biggest and nicest around, it will not appreciate much more when remodeled.
• Remodeling is an invasive process.
• May take 5+ years to fully increase your home’s value.
• The layout you are looking for is already there with no time or work to be done.
• Your budget is the only limit on the size, style and area you move to. Depending on lot size, etc, you may not be able to remodel your current home into the dream you envision.
• Real estate fees– real estate commissions, taxes and closing costs; plus minor improvements in new home, furniture & window treatments, movers, etc
• Selling your current house.
• Cost of moving – time, money and energy spent moving
A lot of things to consider, but the home is usually the biggest investment most of us have, and decisions should be made only after much research.