Remodeling vs Moving
The Homeowner’s Dilemma:
Should I Add On Or Move On?
Perhaps it was that moment when you realized that avocado green and harvest gold are no longer the "in" colors for today's trendy kitchens. Or maybe you had an epiphany one day as you stood in line to use your own bathroom. Whatever the impetus, the thought has crossed your mind: Maybe it's time to remodel.
If you decide to follow through on that thought, you'll join millions of others who decide to remodel their homes each year. The reasons for remodeling are as varied as the projects we undertake. Some of these include:
Before you head too far down the remodeling path, it's a good idea to think through your wants and needs:
If you want to change your home, your other option besides remodeling is to find a new one. But more and more American families are deciding to stay put and improve their existing home. Here are some of the reasons:
While there are many reasons that people choose to remodel, the bottom line is that remodeling makes your home a more enjoyable place to live. The "quality of life" value of this pleasure needs to be factored into your decision, along with any resale value you hope to gain.
But there is no doubt that, as far as improving the sale of your home, all remodeling projects are not created equal. The general rule of thumb is that any remodeling project that brings your home up to the level of your neighbors' is a worthy investment. But it does NOT pay to be the most expensive house on the block - real estate experts recommend that a remodeling investment should not raise the value of your house to more than 10 to 15 percent above the median sales price in your neighborhood.
REMEMBER: The principles of progression and regression are always in effect. If you have a modest sized house that is located in a neighborhood of larger homes, the value of your home is going to be influenced and lifted by the value of your neighbors’ homes (Progression). And conversely, if you currently have (or are planning to expand your home to become) the largest home in a neighborhood of smaller homes, the value of your home is also going to be influenced and held back by the value of the smaller homes in your neighborhood (Regression).
Remember that potential buyers will be comparing your home to new construction. Therefore, you'll want to look at the design trends and amenities being built into today's homes. Great rooms (open kitchen/family room arrangements), master bed and bath suites, and higher ceilings are a few of the features sought by today's home buyers.
Each year, Remodeling Magazine conducts its "Cost vs. Value" Report to assess which remodeling projects create the greatest return on investment. Not surprisingly, kitchens and baths regularly come out on top. These are two of the most used rooms in the home, and they receive the most scrutiny from potential buyers.
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