Having trouble deciding whether you should remodel your place and stay put or search out a more suitable pad?  Read on for some considerations which should hopefully help you with this decision:

Many of my clients like their house enough, but it’s just not the right one for them.  If they could tweak the floor plan, upgrade the kitchen, and build out an extra family room – it would be perfect.  Except for the howling dog, the drummer who works practices with his band twice each week, and the constant roar of the El Camino traffic.  Or, the neighborhood is perfect, the neighbors periodically bring baked goods – but the half-sized lot won’t allow for the extra bedroom you need and the pool you have always wanted.

Neighborhood is key.

As you always hear, you can change almost anything about a house except for the neighborhood.  This is where I always start with clients who aren’t sure.  Are you happy where you are, should you have a house more suited to your needs?  Are you near a busy street or another nuisance that drives you crazy on a regular basis?

Will you be able to recoup any money invested when it is time to resell?

It’s great that you might want to double your square footage, put in a custom kitchen and that hand-excavated 10,000 bottle wine cellar you have always wanted.  But when you go to sell in 10, 20, or (heaven forbid) a job change forces a THREE year plan, will you be able to get out of your home without a decent sized “haircut” to your investment?  Look around your neighborhood at what has recently sold.  Compare that with how your neighborhood has fared over the years.  Do you already have the biggest, most expensive house on the block?  If so, you may not want to over-improve your current home beyond the standards set by the neighborhood.

Does renovation make financial sense?

Do you have the cash needed to make the necessary repairs, or are you already maximized on your monthly debt and have no cash reserves to cover any unexpected “bumps” in your proverbial road?  Would taking an additional loan put you in an uncomfortable financial position?

Can you endure living through construction?

I probably should have put this at the top of the list because it is where most people will stop reading.  Living through construction isn’t fun, it disrupts daily routines, and puts an extra layer of stress upon everybody in the household/construction zone.  Renovations can be fun when you’re choosing finishes, but what about when the four month project is going on eight months and you can’t possibly endure anymore take out dinners?  I’m not saying all projects go over time and budget, but how would you deal with the situation if it did?