Tom Kelly: Would a remodel make more sense than a move?

We hear it all the time - a house is worth what somebody is willing to pay for it. And in many neighborhoods, many people are paying a lot of money to buy homes.

If you are lucky enough to own a home, do you truly have to move? Can you solve your space and comfort needs by exploring a remodel that can keep you in a lovely neighborhood and terrific school district?

If you are truly not eager to jump through all the hoops that come with a change of address, plus the stress of stretching to make it work financially, why not take advantage of low home-equity interest rates and fees and make your house fit your new needs and wants? Add the touches you see in other residences in your present home.

And, in most cases, equity lines of credit will be fully deductible under the usual mortgage interest guidelines.

One of the primary considerations often is return on the investment. Will the cash spent on the remodel be recovered when you eventually decide to sell? The outlay probably will, yet try to focus on comfort rather than return on investment. Rising property values can make up for most remodeling mistakes, but most of the time tasteful choices work to everybody’s advantage.

What projects absolutely do not work? Outdoor swimming pools can sometimes curtail resales in some areas. The “can’t-miss side” of the remodel ledger always includes kitchen and bathroom projects. In many areas, however, home offices often post one of the highest returns in the country because of their versatility and flexibility.

A recent national survey showed average outlay for a minor kitchen remodel was $8,655 with an average return of $7,041 or approximately 81 percent of the original investment. The return percentage varied depending upon the housing market with Seattle (98 percent) showing far greater returns than the national numbers.

A bathroom refurbishing showed a national average cost of $13,918 with an average return of $10,000 or approximately 72 percent of the cost. The return again varied, depending upon location.

If want to turn the family den into a home office - via a complex remodel or by simple paint and wall covering - you are not alone. The home office is quickly moving up the “want” list for new homebuyers. The number of telecommuters has grown mainly because of the convenience, tax and selling advantages.

The top three considerations - location, location, location - still rule in real estate. However, Number 4 has become “wired.” Existing homes wired to support home automation technologies have already become more valuable than those that are not.

And, the demand is across the board. It holds true for the high-tech-comfy Baby Boomers who want to work at home, Empty Nesters who have more time on their hands and covet a home office and Generation Xers who now make up more than one-third of the work force.

Perhaps the most underestimated group has been retirees - both early and late - who possess significant wealth and continue to work in alleged retirement. In fact, many of them say they are busier since leaving the corporate structure than they were toiling in it. Home offices are their heaven, and the results of a recent survey of developers supports that desired space. The survey found that more than 75 percent of builders now include home offices in their plans.

Clearly, lifestyles are changing, driving the need for home networks to share computer resources. The equipment can be housed in a central location, such as a master bedroom closet or a laundry room. The price for structured wiring to support these networks depends on what functionality is required, ranging from $1,200 to retrofit homes to $20,000 for systems that tie everything together.

If your remodeling costs seem high, remember to subtract the stress and cost of moving to a new address. It will make your decision to stay, improve and enjoy feel much better.