For homeowners that have outgrown their home's size or design, their first instinct is to shop for a new house. But remodeling may actually be more affordable and better for the family in the long run. To decide, ask yourself these questions:

1. Do you like your neighborhood? Consider the proximity of your job, schools, shopping areas and places of worship and how a new neighborhood will affect your ability to reach all those places.
2. How long do you plan to stay there? Consider a major remodeling job if you intend to stay in the home at least five to 10 years. There’s rarely short-term financial benefit from a major improvement project.
3. Do you have the largest and nicest home in the neighborhood? If so, your home is not likely to appreciate much more in value. But if you have two full baths and others in your neighborhood have three or four, adding a bath is a good investment that will pay off when you’re ready to move.
4. How’s that floor plan working out? New homes feature wide open spaces and trendy floor plans, but remodeling can improve the flow of older homes.
5. How does your garden grow? If you’ve put a lot of yourself into the landscaping around your home, you may have deeper roots than you first think. Consider what you can bring with you, or if you’re ready to start all over
6. What’s the true cost of moving vs. remodeling? Don’t make a quick decision based on what seems like a bargain. Evaluate the true financial and emotional costs, as well as the time involved for each option. Be sure you know if your new home will need repairs or improvements. Any new furniture or decor you buy for the new home should factor in, as well. The cost of your home renovations should not exceed 30 percent of the property’s value. You’ll likely be better off moving if you have to spend more than that.