If you have grand plans for improving your home or expanding its size, make sure you don't "over-improve." Few homes sell when priced more than 20% above average home prices in a community. The more you spend, the less return you're likely to get on your investment. 

“It can pay to keep remodeling costs 'within the neighborhood.” 

How much is too much, depends a lot on what improvements you undertake, what's happening in your neighborhood and, in the end, your personal reasons for improving.

You'll also want to figure out whether you'll get a large percentage of your investment from the renovation back in the form of increased home value. Your REALTOR(R) can also help you with that. For example, you might learn that all of the southwester houses in your neighborhood have four bedrooms and 2 1/2 baths. Your three-bedroom, 1 1/2 bath colonial could rapidly increase in value with the addition of a master suite - adding that fourth bedroom and extra full bath. But, on the other hand, if you already have the fourth bedroom and 2 1/2 baths, adding a fifth bedroom could provide you with a low return on your investment. 

Although you may like the neighborhood you're in, it could be more cost-effective to sell your current home and buy another (perhaps in an adjacent neighborhood) that already has the space and features you're looking for. Give us a call to learn more about property values in your community before you go ahead with remodeling plans.

SELL OR REMODEL

We've sent along a link to our special report, SELL OR REMODEL: How To Get The Most For Your Money. You can read it at no obligation.