Advice from Other Experts:

Remodel Or Move?
Dan Fritschen

If you’re a homeowner looking for a change, you have a pretty tough decision ahead of you. Is it better to remodel or to move? On the one hand, moving gets you into a house with some of the features you are looking for, but will it be everything you need? And how much will the move cost you? On the other hand, remodeling can improve what you don’t like about your home, but what will it cost?

The price tag for either choice is likely to be tens, and possibly hundreds of thousands of dollars. So how can you, a typical homeowner, get the information you need so you can make a wise decision? The information is widely available on the internet, in your local library, and it's also available from real estate professionals in your community.

Here is a list of the information you need and where to get it to make the right decision.

• The price you could sell your home for and the cost of a home that you could buy that would meet your needs. Many good websites offer this information. You can also ask a local real estate agent to help.
• The cost to move. Typical cost is 10% of the value of your home, but your cost will vary based on a number of factors. Again ask a local real estate agent who can help you zero in on this cost.
• The cost to remodel and the payback. You can ask an architect or a contractor for a estimate of the cost to remodel. Estimating the payback (payback is the amount your home will appreciate because of the remodel) is a little more difficult Again a good real estate agent can help you with this.
• Don’t forget about property taxes. Depending on where you live this can have a big impact on your cost to remodel and your cost to move.
• A complete list of the reasons you want to remodel and the reasons you want to move.

Reasons to move include:

• You want a different location; e.g., closer proximity to work or shopping
• You want better schools for your children.
• You don’t like your neighborhood or your yard.
• You have the largest and nicest house in the neighborhood, and more improvements will not be a good investment.

Reasons to remodel include:

• You like your location, neighborhood and schools.
• Many of the homes in your neighborhood are larger and nicer than yours.
• You like the unique floor plan of your home.
• You want to live in your dream home. It is often easier to get your dream house by remodeling than by moving.

To make an informed remodel or move decision, you need to calculate the cost to move, then compare that with the cost to remodel. If moving is less expensive and you have more reasons to move than remodel then moving is the right answer for you. If remodeling is less expensive and you have more reasons to remodel than move then remodeling is the better choice.

Dan Fritschen is the creator of remodelormove.com, a homeowner support organization that helps homeowners become better informed so that they can make the right decision on whether to remodel or move. He is also the author of Remodel or Move?™ Make the Right Decision, distributed by IPG.

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