Move or Improve
Selling a home can cost thousands of dollars by the time
you total up the closing and moving costs, and thousands
more if you have to outfit your next home with new
appliances and furniture. If you don't have to sell
immediately, weigh your decision carefully especially if
the market is slow and chances are high you won't get
top price for your home.
Before you can decide whether remodeling is right for
you, ask yourself these questions"
Do you have the space to expand?
If not, and you need space, the issue may be moot. But
consider other ways to maximize the space you have.
How much can you do before you start
over-improving for the neighborhood?
Whatever your improvements, they should match the size
and sensibility of the area in which you live. Too many
improvements do not always translate into higher resale
value, and your massive addition may alienate your
neighbors.
Will remodeling do the trick?
Be realistic about how much remodeling can do. If you
want to live in a spacious home on a large lot right
now, no contractor will be able to turn your tiny urban
bungalow into the home of your dreams.
Will it pay off in the long run?
In a slow market, you can expect to get a lower price
for your home and much less of a payback for
improvements than you would receive in a fast market.
Kitchen and bathroom remodeling projects consistently
return the most in resale value while converting a
basement into a family room yields the smallest return.
Factor in any financing costs you incur if you refinance
or use a home equity loan to complete your project.
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