What you should know about the market:
• One of the most important steps a home buyer can take when deciding which home to purchase is to conduct "drive bys" of the house and the neighborhood at various times of the day and on both weekdays and weekends. Taking the extra time to research the neighborhood will help determine if there is too much or too little social activity for the home buyer’s lifestyle; if there are barking dogs in the house next door; and if the home is located on a street with a lot of traffic during commute times.
• A study by Remodeling magazine found the average rate of return on value for an upgrade in a home declined from 87 percent in 2005 to 64 percent in 2009. Taking that into consideration, many real estate experts recommend homeowners remodel instead of adding on to their home. For example, having a large, formal living room and an everyday family room is less desirable than having one multi-use common space So, rather than adding on, most homeowners are better served reconfiguring the existing floor plan or capturing unused basement or attic space.