Remodeling your home can pay off

National surveys suggest major remodeling isn't always a great investment for people on the verge of selling their homes. But for most people, remodeling is a complex decision based as much on their own enjoyment as it is on sound economics.

A local appraiser tells homeowners to answer the questions: Is the remodel being considered to make the home more livable over the next three to five years? Or is it being undertaken to prepare the home for quick sale in a competitive market?

The answer to these questions will go a long way to defining whether or not a remodeling project is right. But even after that decision is reached, there are complications.

People whose homes are in obvious need of repair may have to bite the bullet and pay to have their home re-sided if the old siding is rotten. But they also have the option of leaving the rotten siding as is, and discounting the price of the house, letting it appear to be a bargain for its size and neighborhood. The assumption is that the buyer will be willing to undertake the remodel.

Appraisers work off comparables — similar homes sold in the same neighborhood — and homeowners contemplating a sale and/or remodel should try to do the same.

People who intend to stay in their homes should broaden their horizons before taking on a remodel and look at how cost effective the remodel is compared to buying a newer home.