Should I remodel or look for a larger or newer home?
One of my biggest pet peeves in buying a home is to never purchase the most expensive in the neighborhood. That same rule applies to doing a major remodeling to a home. Some homeowners are under the impression if they spend $25,000.00 on a remodeling project, they will recoup that investment when it is time to sell. Two things occur, 1. It's rare you can recoup 100% of the original investment 2. Major remodels often price the home at the very upper end for that area. As a result, the home owner is stuck with the fact that to sell they are going to lose money and in some cases could even hurt their chances of finding a buyer. Often home improvements are done to suit the present owners’ lifestyle, and a prospective buyer may not value the changes as much.
It's great to improve or redo your home to your liking, but please keep in mind the average time to own a home is five years. Ask yourself will I be able to get my investment out when I sell?
-Maurice Vaughn