To remodel or move?  That is the question.

A number of things can trigger the dilemma of whether to remodel or buy another home. Some people may feel they've outgrown the space their home provides. Others may be tired of struggling with outdated plumbing, wiring or mechanical systems. Still others may simply be in search of a change in design.

Whatever the particular situation, choosing whether to remodel or to move involves considering a number of factors. Outlined below are several scenarios that might favor one decision over the other.

Five Good Reasons to Move

1.  Current location just not working.  Unruly neighbors, a miserable commute, a less-than-desirable school district—these are factors that a homeowner can't change. If your location is detracting from your overall quality of life, it’s time to consider moving. Keep in mind, however, that some locational factors that might prompt a person to move might also have to be disclosed to prospective buyers. This could affect the price you're able to get for your home in a sale. Such factors might include pending lawsuits against local service providers, proposed land use changes for neighboring properties and impending tax assessments of governmental agencies.

2.  Need a change, but home is already the nicest in the neighborhood.  Regardless of amenities and improvements, a home's location generally limits the amount of money a person can get from a sale. A general rule for remodeling is that a home should not be more than a 20-percent over-improvement for the neighborhood. If your property already is the most valuable on the block, additional upgrades probably won’t pay off at selling time. In fact, upgrading a home in this situation may not provide any increase in value to your property.

3.  There’s a good chance you’ll move soon anyway.  If your likelihood of moving in the next two years is high, remodeling probably isn’t your best choice. There’s no reason to go through the hassle and expense of remodeling and not be able to enjoy it. After all, the increase in value from remodeling usually doesn't fully offset the invested expense within the first several years after a remodel. It may be better to move now to get the house you want—and at a lower price.

4.  Too many improvements necessary to meet your needs. This is a particularly common issue with growing families. What was cozy for a young couple may be totally inadequate when children are added to the household. Increasing the space needed to make a home workable may cost more than moving to another house. In addition, lot size, building codes and neighborhood covenants may restrict what can be done. Once you've outlined what changes you want to make, I can help you determine what kind of home you could buy for a similar investment.

5.  You don’t like remodeling. Remodeling is disruptive. It can mean inconvenience from losing use of a room for a week, or it can mean having to move out altogether for a period of time. Remodeling also requires making a lot of decisions. You have to be able to visualize new walls and floor plans, decide how large you want windows to be, and where to situate doors. Then there’s choosing from hundreds of flooring, countertop and fixture options. Some people love this. If you’re not one of them, it’s easier to buy a house that has the features you want already in place.

Five Good Reasons to Remodel

1.  You love your neighborhood.  You can walk to the park, you have lots of good friends nearby, and the girl at the espresso stand knows you by name. Some features of a neighborhood—whether it’s tree-lined streets or community celebrations—just can't be re-created somewhere else. If you love where you live, that’s a good reason to stay and remodel.

2.  Like your home’s floor plan.  The general layout of your home either works for you, or it doesn’t. If you enjoy the configuration and overall feeling of your home, the combination of special features you really value, such as morning sun or a special view, may be hard to replicate in another property.

3.  You already have a great yard.  Yards in older neighborhoods often have features that can't be found in newer developments, including large lots, mature trees and established landscaping. Even if you find a new home with a large lot, it can take considerable time and expense to create a fully landscaped yard you'd like.

4.  You can get exactly the house you want.  Remodeling allows you to create a house tailored exactly to your lifestyle. You have control over the look and feel of everything, from the color of the walls to the finish on the cabinets. Consider also that most people who buy a new home spend a certain amount of money to redecorate and to add things they may miss from their old home.

5.  It may make better financial sense.  Remodeling might be cheaper than selling in some cases. A contractor can give you an estimate of what it would cost to make improvements you want. I can give you prices of comparable homes with those same features. But remember, while remodeling projects add to the value of your home, most projects don’t fully recover their costs when you sell. The chart at the bottom of the page gives some examples of the return on investment for certain remodeling projects.

Some important questions to ask yourself when thinking about remodeling are listed below:

• How long do I plan to live in my current home?

• How much money can I afford to spend?

• Where will this money come from, and how much will the money cost?

• How do I feel about my current location?

• Do I like the general floor plan of my house?

• How many years will it take to recover the money I invest in remodeling?

• Can I get more house for the money in another location that I like?

• Am I willing to live in my house during a remodeling project?

• Do I have the resources to temporarily live elsewhere if my remodeling project doesn't go as planned?

The table below shows some of the remodeling projects that tend to recoup the most money, based on surveys by Remodeling Magazine.

* Job-cost and value-at-sale figures are based on national averages.