Every homeowner comes to the point where they ask themselves, “Should I stay or should I move?”  Moving can be very costly and expensive, but then again so can remodeling.  How can the consumer know which is best?  Fortunately a recent Houzz study predicts it will be more beneficial to stay and remodel than it will be to move in 2014.  

More than 50 percent of those surveyed have chosen to increase the value of their home by remodeling in the next 1-2 years.  In fact more homeowners over the age of 35 are opting to stay long term.  This age group is less likely to face life-changing events that would cause them to move.  They have also found that they can’t replace what they have and it just doesn’t make good “common sense”.

Reasons People are Choosing to Stay Put

• Home prices are up – While people can now get more for their home, they are finding it hard to replace what they already have.  Many are not willing to trade in an older well built home for one of the newer box homes
• It is more economical to refinance – Many people who are considering moving are looking for a lower house payment.  Why go to the expense of moving when you can just stay put and lower your monthly house payment? They can use this extra cash to pay off their home more quickly or even save for children’s college education
• They want to keep the equity they have already built up – Homeowners have just starting to rebuild their lost equity since the recession started.    With little equity, it would cost more to pay the realtor and moving costs than it is worth.
• Appraisal dilemma is getting better- Even with low interest rates in recent years it was difficult to get the appraisal needed to refinance.  Many people were upside down on their homes and found they were worth less than they paid for them.  With the recent upturn in the economy homes are finally appraising at a value so homeowners can qualify for these new loans.

The Kitchen is the best place to start when remodeling and updating your house.  Most remodeling experts will agree that remodeling your kitchen will increase the value well beyond your investment.  By remodeling the kitchen in your home you will build equity and get a greater return.

To find out where people are choosing to put the rest of their money in a remodel click here for the full article.