What are the real costs involved in renovating your home?

Cost is the biggest factor when decided if you should move or remodel your home, primarily because remodeling costs can be hard to estimate. Remodeling projects seem to grow in scope and price as they progress.

You’ll need to get detailed quotes from a few contractors or builders who do work of the same type and quality that you want. Most experts recommend adding 10 to 20 percent to any estimate a contractor gives you.

When determining the cost of a remodel, don’t forget to add the cost of your financing. If you are adding space to your home, be sure to consider the
cost of higher utility bills, bigger homeowner's insurance premiums and higher property taxes.

Consider home renovations only after you’ve taken care of yourself financially. If you are debt-free, have an emergency fund and are saving for retirement, go for the remodel.

If your finances aren’t in great shape, experts say you’ll most likely be in better shape moving. The reasoning behind this is that the cost of remodels can spiral out of control quickly. It’s better to go with the known entity – another home with a solid purchase price and a good home inspection.

If you are still not sure if you’d be better off remodeling, consider the costs of moving. You’ll need to consider real estate commissions, closing costs and moving expenses. Consider any increase in mortgage payments, utility bills, taxes and homeowners insurance. And there’s the cost of redecorating and landscaping, too.

Dollars and cents are just one factor that goes into the decision to remodel. You may love your neighborhood, school district or the design of your home. You may have invested a lot of time and effort in landscaping or building a deck.