If you’ve been living in your current home for more than 3 years, this report will likely be of some interest to you.

"If you’re thinking about purchasing a larger or more comfortable home, but you really love your current neighborhood, you should carefully consider all ramifications before making any decision."

To add-on or buy something bigger? As both opportunities promise to improve the quality of life and your financial position, it only makes sense to examine all aspects of your own unique situation. Here are some ways to go about it.

A. How do you feel about your current location in terms of safety, commute and proximity to family and friends?

B. How do you feel about your current neighborhood schools and parks, etc.?

C. Are you happy with your lot size and location on the street?

D. How long do you want to stay in your present home?

If the addition of that new family room means you’ll be forfeiting something ­ your much-needed garage, for instance ­ then perhaps you should consider a move.

After all, certain properties just are what they are. That sweet little bungalow was likely your starter... and may represent the same to a future purchaser. So selling your home and moving to a new location could be the solution if you’re in search of more space or different configuration. Obviously, you will have your own reasons.

Just remember that while moving is your only alternative to improving, it too has its costs to bear.

In addition to purchase price differential, you’ll also need to pay for new home inspection fees, upgrade costs, improvement and decorating costs, real estate commissions, legal fees, land transfer taxes, moving company expenses and miscellaneous utility setups... plus touchup and repair costs for your current home.

If a family room or extended kitchen has now become an absolute must ­ and you have the space to accommodate it ­ then renovating your home could be the answer.

As a rule of thumb, the better your house and neighbourhood, the more value your renovation returns. While conventional wisdom holds that the cost of home-plus-improvements should not exceed the top selling price in the area, such is not always the case.

It's hard to over-improve good homes in good locations these days. In fact, a reputable real-estate agent would not encourage you to move if you could make your current home everything you want it to be.

In trying to assess the cost of improving, homeowners usually rely on contractors for ballpark estimates. Many also speak with well meaning neighbours or family members who have done renovations of their own. Others find information in magazines and books, on television and the internet, at home shows and, of course, by speaking to designers and architects.

But to truly understand the full impact of your renovation, you need specific, accurate and well-thought-out information.