Remodel or build new?
Before you make a rash decisions you should take into consideration a couple of things.

• Remodel or move?

First and for most if you like your neighborhood then you should definitely stay put.  Moving into a new home is a big project and can be more costly than your remodeling project to begin with.  Advantages to remodeling your existing home is you already know your neighbors , school system and what day your take  out the trash.  However, don't think that remodeling your existing home goes without any blood and sweat, you will be sharing your home with contractors for a fair amount of time and depending on which room your are remodeling it could mean a lot on inconvenience for you and your family. 

• Can I recoup my cost if I sell?

You should look at the value of your existing home, add the cost of the remodeling project and then determine if your house will be over the market value for your neighborhood.  Most consumers rarely recoup the entire investment, but needed updates will help your home resell value.  Remodeling magazine estimates that home owners can recoup between 60% to 80% spent on home-improvement.