Remodel or Move?

If you've decided your home no longer fits your needs, you might be thinking about moving. Maybe you need more space for the kids or a home office. Maybe you've outgrown your closets. Maybe the baths are just plain "dated." You're probably tempted by all the "For Sale" signs and all the indicators that it's a buyer's market. It's true that you might find a great deal on a house that fits your needs. Then again, it may take months of house-hunting to find the perfect match. Once you find the house and agree upon the price, you have to find the right lender that offers the right mortgage option for you. In the meantime, you have to sell your existing house...and you know that can take months. Then once you take possession of the new house, you will probably decide to do a few things to it...painting, new carpet, etc. And then you have to pack! All that "stuff" that has to be moved...And don't forget the psychological strain of leaving your neighbors, school, or familiar community. All of this while time passes...It wouldn't be unusual for 4-6 months to go by before you can actually close on both houses and move.

On the other hand, think of remodeling your existing house. You could have a room addition, new baths, new kitchen cabinets, or flooring upgrades, and you wouldn't have to uproot the family. You wouldn't have to pack! And often, you can use an existing home equity line of credit to finance the remodeling so no complicated loan applications or appraisals are necessary. In many cases, it can be quicker and easier to make changes to your existing house. Consider not only money, but also time and effort when deciding whether to remodel or move.