Build a Home Addition or Buy a Bigger House?

Deciding whether to build a home addition or purchase a home with more space is a complicated issue, and the answer isn't going to be the same for everybody. If you have been tepid about your house for awhile and now see the need for more space, this may be your chance to start fresh. On the other hand, if you are fond of your house and wanted to retire there if it weren't for the space constraints, an addition could be a way for you to stay in your home and get the space that you need.

• It is typically more affordable to put a home addition into your home rather than purchase another home with the square footage that you require.
• When building a home addition, you are getting a portion of your home customized in a way that you can't enjoy when purchasing another home.
• Adding square footage commonly adds value to your home. In some cases you will be able to recoup part of the cost of home additions in a sale, especially if you are adding a bathroom.
• Take a look at tax incentives available for building a home addition as opposed to purchasing a new home.
• Consider how long you have been in your current home and how long you intend to stay. Have you invested so much in this home that you would lose money on it by selling now? You may want to wait for the housing market to rebound before trying to sell your home. On the other hand, purchasing another home while the housing market is down will be much easier because prices will be competitive.
• A home addition can mean weeks of headache day in and day out as contractors work on the project. In addition, unless the project is planned and executed smoothly, cost and time can easily get out of hand.
• Consider the neighborhood you are living in and whether you would like to stay or find a home in another neighborhood. nearby schools, churches and stores can hold a value to you that you may not be willing to forgo in order to move into another home.