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Step 1
Decide if you can live with it. That doesn't mean the home as it currently is, but whether you can live with the remodeling process. Remodeling a kitchen, bathroom or other living space can cause a major upheaval in your life because you'll be unable to use the space for a certain amount of time.
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Step 2
Hire an appraiser. Before you can move forward with any remodeling project, you need an appraisal. Find out from a qualified appraiser how much your home is worth in its current state.
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Step 3
Check out the comps in your area. After you know how much your home is worth as-is, do a little leg work and find out how much the homes in your neighborhood have sold for with the upgrades you're planning. The average should be significantly higher than your home's current value. And the gap between the two is your potential remodeling budget.
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Step 4
Acquire estimates. Whether you plan on contracting the work to be done, or if you're a do-it-yourselfer, you need to get an idea of how much the project will cost. If the total is a good bit less than the comps you already have, go ahead and start demolishing.
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Step 5
Think about the long haul. When you consider the cost of your remodeling project and the inconvenience, look to your future to figure out if you see yourself in the home in 5 years or more. Whether you plan on staying in the home, or you think you'll sell soon will help you decide what kind of remodeling you do, if any.
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Step 6
Consider how you feel about your home. If you love the layout, if your yard is a slice of paradise, if the area has everything you want, it's probably worth remodeling your home. If you're constantly thinking of ways to change your home or always looking at the houses with the For Sale signs, then you might not want to bother, unless your Realtor advises otherwise.
