Friday, January 04, 2008

Want To Trade-in Your Home?

By Andrew R. Huges

Every year, millions of Americans move into their dreams home and hoping to live the American dream.

As time goes by, families expand, and children grow older, and then suddenly, the home is not quite so perfect anymore.

Or maybe you still do love your home at heart, but you really want a gourmet kitchen and a larger master bedroom.

Should you start looking for a new house then? Or would it be better to stay where you are and remodel the place instead?

Both options involve a significant amount of investment in time and money, so it's important to take your time to study and make an informed decision.

You'll also want to make sure that you consider both the financial and the emotional sides of the equation. Let's begin by examining the financial factors involved first.

Moving: A good local real estate agent should be able to help you with accurate estimates on these numbers: - How much does it cost to buy a home that will meet your needs?

- How much could you really sell your existing home for? Don't forget to subtract the agent's commission from the total transaction amount.

- What will it cost to move the house? According to real estate consultant and best-selling author of Remodel or Move, Dan Fritschen, a typical home move costs 10% of the total value of your home.

- How much does your property taxes increases as a result of the moving?

Remodeling: - What projects do you want to have and how much will they likely to cost? An architect or general contractor will be able to assist you with these.

- How much will the improvements add to the overall home pricing, also known as the "payback"? A local real estate agent can assist with this too.

Reasons you may wish to move home: - If you relocate to a new place, or your children could attend a superior school.

- You would like to reduce your travel time or have better access to local amenities, such as restaurants and entertainment.

- You're not really fond of your current neighborhood.

- Your yard is too small for your family, and you cannot expand it.

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