How to Decide if It Makes Financial Sense to Move

Putting pen to paper can give you an idea of whether you should remodel your existing home or move.

Instructions

Difficulty: Moderately challenging

Things You’ll Need:

• Financial Calculator
• Contractor Referral Services
• Paper And Pencils

1. Determine what remodeling projects you want done.
2. Get estimates from contractors.
3. Ask a realtor what your current home value is and what it would be after remodeling.
4. Subtract remodeling costs from your house's remodeled value.
5. If this figure is more than your current home value, remodeling is probably a good investment.
6. Compare your current monthly mortgage payment (plus payments on a home improvement loan, if applicable) with that of a new house.
7. See whether you would pay more monthly on your remodeled home or on a new home.
8. Make a decision based these investment and monthly payment factors.

Tips & Warnings

• Add value to your home by remodeling kitchen and bathroom. "Great rooms" and luxury bedrooms are a current fad for buyers.
• Remember hidden moving costs such as realtor commission, closing costs and movers.
• Avoid making a decision on financial factors alone. Personal factors (attachment to the neighborhood, commute, schools, uprooting your children, etc.) are important.
• Always consult a realtor before remodeling. Your house's value is greatly dependent on the value of the houses around you.