At some point, you may find that your home doesn't work well for you anymore. You may need more space or a reconfiguration of the floor plan. The decision to remodel or move can be relatively easy in some cases and difficult in others.
In one example, homeowners in Berkeley, Calif., needed more space for their growing family. They looked at more expensive houses to buy instead of facing the hassle of renovating. They discovered that they couldn't afford to buy a larger home in a prime location. But they could afford to add enough space to their home to make it work for them. Luckily, their home was already in their preferred location.
Since they owned one of the smaller homes in the neighborhood, they could afford to invest in an expansion without overimproving for the neighborhood. They intended to stay in the home indefinitely.
Another couple with children, living in an Oakland, Calif., neighborhood they liked, talked to an architect about redesigning the space in their home to make it more user-friendly for their family. The plan didn't give them exactly what they wanted. However, it would be an improvement over the existing floor plan, but at great expense.