Photo by James Thompson

Update: Having the nicest and largest home in the neighborhood may sound like a great position to be in, but when you come to sell your home, this may work against you. The state of your neighborhood and the average size and price of the houses around it has an impact on the price you can expect to ask for your home – so when you’re selling you might not get as good a price as you’d hoped for. If you need to make further additions it’s probably a good idea to move to an area where a larger home fits in with the rest of the houses in the neighborhood.

You may have remodeled your home before and now your home is the largest and nicest in the neighborhood. This is great if you love the neighborhood and plan to stay in the home for years to come.

However, if you have been remodeling your home because it needs updating and you still need to add additional space or amenities, then a move may be a good idea financially. The houses near yours have a large influence on your home’s price. If the homes next door are palaces and you are living in a cottage, your cottage will sell faster than if it was two blocks away and next door to other cottages.

Before making the remodel-or-move decision, take a look at your house and your neighbors’ houses. If you have the nicest or largest house in the neighborhood and need more space, moving is the better solution since your payback on additional improvements won’t be very great.