Let's consider a hypothetical situation. You have thought about moving into a new home, researched the latest magazines to get ideas, examined new and existing home prices, talked to some builder and real estate agents, and even gone to all the Parades of Homes; but after it is all done, for whatever reason, you decide that you really don't want to move out of your old home. What can you do now?

Really there are only two answers to this situation: continue living in the house as it is, or do some remodeling and possibly breathe new and vibrant life into your old home.

Consider also how much it will cost you to move into another home. If you move into a house of comparable size, taking into account such factors as the price of the house, closing costs associated with the loan, moving expenses, some repair and paint work on the old home, you could be looking at several thousand dollars just to be located in a different house. Those thousands could go a long way into making your present home a little more new for you.

Remodeling is generally a good investment on what may amount to be the biggest investment you will ever make: your own home. A new car will depreciate the moment you drive it off the lot, but your home and the improvements you perform on it can show you a tremendous return on your investment dollar over the next 10 to 20 years. The term "remodeling" covers a broad area and includes anything from a minor kitchen or bathroom job to a complete expansion which takes up to six months to complete and could give you a breath-taking new home.

If you do decide to improve your old home, you might want to start off by making a list of things you like and dislike about the home. Prioritize your list into the top ten things you want, and then set a budget to cover as many things as you can on that list. You will probably wind up eliminating some of the "wants," but the process of setting a good budget will help you get as many things as you desire for your project.

Be prepared, though, for the actual cost of the project. Due to the passage of time, consumers typically perceive the cost of a remodeling job to be about half of what the actual cost will be. It would be the same as if you had not bought or considered the cost of a new car for ten years, and then you were shocked when you went into an automobile dealership to shop around and saw how much the prices had risen in those ten years. Because major remodeling is a major investment, most consumers finance their projects through long-term loans available from a variety of sources, including mortgage companies, banks, and credit unions.

Remodeling your home is not only a chance to reshape your home, but you might also find that you can improve upon it. There are paints these days that can be applied up to the fall and winter time and could last 15-20 years, there are new windows with insulated glass and low-E coatings for energy efficiency, and there are computer software programs that can be used to visualize the entire color scheme of your dreams before the project begins. You might find that your remodeling job not only makes your house look better, but it could make your house more efficient.

Staying in your old home may not be a bad idea, even if you want a new place to live in. Remodeling can make your home come alive, and could give you a great return on your investment should you decide to sell your home at a later date.