Good question. And it is one that is asked a lot. Most importantly, you have to consider the return on your investment BEFORE you begin remodeling. Not every home-improvement / remodel project yields the same return when it comes to increasing the value of your home. And that is the ultimate goal, right!
The best investment, typically, is updating your kitchen and baths. (in most cases, a dollar-for-dollar increase in home resale value) When you do decide to sell, having an updated kitchen is a feature that many home buyers are looking for.
And at the opposite end... the projects that typically yield the lowest return on your investment include adding a sport court or swimming pool, or converting your basement into a family room.
Sometimes, the total effect of several smaller projects can yield a higher resale value than a larger project. Smaller projects (more cosmetic) new paint, doors or windows Larger projects that add living space may cost more, but almost always add less resale value for the money spent.
BE CAREFUL OF OVER-IMPROVING FOR YOUR NEIGHBORHOOD. If your remodel project significantly improves your property over neighborhood homes, you won't return as much when it comes time to sell.
Sometimes it is not about ROI but about your needs and desires. If it is going to make you happy, and you don't care if you make money off it - then go ahead.
I often wonder if people take on home improvements because they're dissatisfied with something that can't be fixed (like location) only to discover that it hasn't solved the issue. Sometimes it's just time to move!
Richard and Adam - so so true! thanks for reading my blog.
Great Post...and the impact of property taxes should not be overlooked. In much of california moving next door to a similiar house can cost many thousands of dollers per year more just in taxes. Of course remodeling comes with an increase in property taxes too.
There is a free online calculator that helps homeowners figure a lot of this out..with 70 questions it can give an approximate cost to remodel and to move including financing and property taxes. It is a good place to consider options. www.remodelormove.com