Outgrowing Your Home?

Has the time come to make some tough decisions? If you've outgrown your present home, there are two questions to ask yourself: Should I add on to my present home, giving me the needed extra room or amenities, and allowing me to stay where I am? Or should I sell and purchase another home that already has the features and size I want?

If you are happy with your present location and surroundings, consider building an addition. This has obvious advantages and one not-so-obvious disadvantage – "over-improvement."

Over-improving your home means two things:

1. That you have spent more money for the improvements than you would get in return if the house were sold, and
   
2. That by making the improvements, your home now has substantially more space, rooms, or amenities than similar homes in your neighborhood.

If you "over-improve," the ultimate value of your home may be held down by the smaller homes with fewer amenities. In other words, by improving in ways that are not consistent with the other homes in the neighborhood, the sale price of your home could ultimately be restricted when you do sell.

One way to make your "move or improve" decision is to ask your Realtor® to suggest a fair sale price, both with and without the improvements. Your agent's knowledge of the neighborhood and the local real estate market is invaluable, and can help you identify other factors to help you make a wise decision.