For a Home Upgrade, Should You Move or Improve?

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What do you do when your family outgrows your house, or when the quirks of the place you oncefound charming aren't so charming anymore?

Is it smarter to move or improve? Here's some advice to help you decide.

Selling Has Gotten Easier

Existing-home sales were at their highest levels since 2006, and the median home price hit $197,100at the end of 2013.

Right now, it's taking just over two months, on average, for homes to sell. If you've been holdingback on selling, waiting for the real estate market to recover, you may find it's recovered in yourarea.

As you prepare your home for sale, consider what homebuyers want right now. Hint: energyefficiency. Demonstrating that your home is weather-sealed is a great selling point.

Also, if you're only up for a minimum amount of work, focus on curb appeal (which REALTORS say iscritical to attracting buyer attention), your kitchen (even tweaks can make a big difference), andpricing your home right. The offers will come.

More Tips

Take a look at homes for sale in your market to get an idea of what you can get for your moneytoday. Ask your REALTOR to send you current listings from your target neighborhood.

Improving Has Gotten Pricier

During the economic slump, home improvement spending slowed, so contractors were willing to cutdeals to stay busy. Today, they're less willing to bargain on price and too busy to accept low-profitjobs.

In addition, the cost of construction materials may be going up. In a recent National Association ofHome Builders survey:

81% of contractors were concerned about rising materials prices 65% were concerned about risinglabor costs

As a general rule, improving your home costs less than trading up. But it depends on what kind ofimprovements you want to do.

Figure paying somewhere between $100 and $200 a square foot for new construction or a majorremodel, depending on the scope of the project and labor costs in your area. For instance, a two-story addition with a family room, bedroom, and bathroom costs a national average of $155,365,according to "Remodeling" magazine's "2014 Cost vs. Value Report."

Now more than ever you need to make sure that you invest your money wisely. In other words, willyour $75,000 kitchen remodel increase your home value by $75,000 -- or by anything close? Notlikely. But at resale you may be able to recoup some of your remodeling costs. For guidelines, checkout the Cost vs. Value Report, which gives the national average annual cost and payback figures for35 popular remodeling projects.

Related: Budgeting for a Remodel

To assess what's right for your particularhouse, let your neighborhood be your guide. Ifthere's any chance you'll move within the next10 years, keep your improvements in line withthose of other houses on your block, or risklosing the money when you sell. Of course,don't discount your enjoyment factor. If it'llmake you happy to install an in-ground pool in aneighborhood without pools, go for it.

Critical Considerations

Your house isn't just your largest investment, of course, it's also the place where your family lives.Financial considerations aside, the question of whether to move or improve should be decided by thethings you can't change about your current home:

School district The amount of traffic on your street Size and layout of your yard Commute timeAccess to markets and malls Neighborhood quality of life

If you love the spot, improving makes sense. But if a different location would be an improvement inits own right, then trading up could be the way to go.

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This article was written by Oliver Marks and originally published on HouseLogic.com.

A former carpenter and newspaper reporter, Oliver Marks has been writing about homeimprovements for 16 years. He's currently restoring his second fixer-upper with a mix of big hiredprojects and small do-it-himself jobs.

The post For a Home Upgrade, Should You Move or Improve? appeared first on Real Estate Newsand Advice - realtor.com.

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