According to Remodel magazine, the financial cost of a remodel is rarely fully recouped in an increase in your home's value, which sounds discouraging. However, when you factor in quality of life, that changes the equation. Choose a project that will both increase your personal enjoyment of your home and the value of your home. If you're a gourmet cook, build your dream kitchen. If you have a stressful job, install a sunken Jacuzzi tub in your master bath. For the best return on your money, talk to your agent about the trends in your local neighborhood.

Next, consider the cost of upgrading versus the cost of moving. If your family has expanded beyond the limits of your home, by the time you add another bathroom and more bedrooms, it might be cheaper to move. On the other hand, if your home's feeling outdated; new appliances, cabinet doors and countertops can freshen up a kitchen for a reasonable cost.

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