Real Estate: Should you move or renovate?

In this inflated real estate market, where demand for both homes and remodeling is skyrocketing, the decision on how best to spend your hard-earned money can be confusing. To help bring a little clarity to the decision, here are a few things the folks at J.S. Brown and Co. say homeowners should consider before deciding whether to move to a new house or renovate their existing home.

COST

Moving

• What will a new house cost in the area you want?

• Will you be able to find a home that offers everything you're looking for, or will you need to remodel the new house?

• What are the costs associated with packing/moving?

• Is your home paid for?

• How will the new mortgage interest rate compare to your current one?

• Are property values in your area steady, rising or falling?

Improving

• What will the design cost?

• What will the project cost?

• Will you need to rent another living space while the home is being remodeled?

• What will be the extra costs, like eating out/higher utility bills during construction?

• How much value will the project add to your home?

• How does your home compare to others in your neighborhood in price?

• How much equity do you have in

your home?

TIMING

Moving

• Can you time the sale of your old home with the purchase of a new home?

• What is the best time of year to sell in your area?

• How quickly can you get financing?

• How quickly can you find/close/take possession on a new home?

• How quickly can you sell/close/move out on the current home?

• How long will it take to pack up the old house and settle in to the new one? Can you do it by yourself?

Improving

• How long will the design process take?

• How long will the permit/zoning/architectural review process take?

• How long will the construction take?

• How far in advance is your contractor scheduling work?

• Can you live through the remodel? Would it go faster if you move out?

• Will your project be affected by weather?

INTANGIBLES

Moving

• What part of town do you want to live in?

• What's the school system like in the new location? The proximity to work, to family, to recreation?

• Are you looking for a different lifestyle? Home to condo or vice versa? Rural vs. suburban vs. urban?

• Is there something about the home you don't like that can't be fixed, such as being located close to a busy road, etc.?

Improving

• Are there features of your home/neighborhood you would hate to leave, such as neighbors, landscaping, project(s) you've already completed, the school system and the neighborhood vibe?

• Would moving disrupt your family

too much?

• What's the sentimental value of your home?

• Is your home historic or unique?