Not sure if it’s time to move? Wondering if you should just stay put and remodel? Think about these 3 questions:
1. Do you really need more space?
If you answered yes, do you need more space more than you need a college fund or a nest egg? It all comes down to priorities. Yes, space is important. If you have more children than bedrooms, more stuff than you can store, or are in an older home that would be impossible and/or price prohibitive to enlarge and/or update, that’s one thing. If it’s just a “Keeping up with the Joneses” thing, well, then there are a few other questions you’ll want to ask yourself, like whether or not the Joneses will make your house payment if you get yourself in trouble by biting off more house than you can chew.
2. Is staying in your existing neighborhood important?
Your kids may not appreciate the extra bedrooms or the pool out back if they have to move our of their schools and leave their friends behind. Make sure if you’re making a move for the good of your family that you are in touch with what your family really wants.
3. Should you stay put and renovate?
Whether to move or improve is always a difficult question, but by taking a few minutes and doing a few calculations you can make the right decision.
Generally, improving costs less than trading up depending on what kind of improvements you’re doing. General rule of thumb, figure on between $100-$200/square foot for new construction or a major remodel. Of course, this will depend on the scope of the project and labor costs in your area.
If you’re thinking about moving because of space for family, it might be a smart decision to add on. Not only will you get the space you need, with a design created to your specifications and style, but you may also increase the value of your home. For more information, check out the Remodeling magazine’s 2014 Cost vs. Value Report to get an idea of return on investment for different improvements.