Add An Addition? Or Buy A Bigger House?

The quest for more square footage is a common tale for homeowners who have outgrown their current space. Maybe it’s the arrival of new family members, the shift to a remote work environment necessitating a home office, or simply the desire for a more comfortable living area.

Whatever the reason, if you live in a neighborhood you love, making the decision between adding a room addition or a complete addition to your home or opting to buy a bigger house can be daunting.

We will unravel the complex tapestry of considerations surrounding this big decision, weighed by factors of cost, convenience, return on investment (ROI), and personal preferences.

Pros and Cons of Building an Addition vs. Buying a New Home

The dilemma often begins with evaluating the pros and cons of each option. Building an addition whether you’re adding a room, or a complete home renovation means you get to stay in the neighborhood you love, close to the school district or community that has become part of your lifestyle.

It allows you to custom-tailor your living space to your exact needs, whether that means adding up for a second story or building out for that much-needed extra bedroom or office.

On the flip side, adding an addition can be a costly affair with uncertain timelines. You may need to live in a construction zone for a while or move out temporarily, disrupting your routine significantly.

Buying a new home offers a fresh start, potentially more space in a less competitive real estate market, and the thrill of a new environment. However, it also comes with the hassle of selling your home, which means dealing with closing costs, home showings, and the physical act of moving your possessions. And higher interest rates on new mortgages compared to your current lower rate is a concern.

Which Costs More?

When it comes to immediate costs, there are a few variables to consider. The closing costs of buying a new home can add up quickly, including real estate agent fees, taxes, and various other charges. Conversely, constructing an addition might require a construction loan with its own particular terms.

Interest rates are a crucial factor as well. With rising mortgage rates, homeowners with low rates might find a home equity line of credit to be more cost-effective due to minimal closing costs.

Inconvenience Factor

Building an addition is no easy feat; it involves turning your home into a construction zone, which could mean several months of noise, dust, and workers coming and going. Alternatively, the process of selling your house, from home showings to the inevitable move, brings its own form of disturbance to your family’s life.

What’s the Better ROI?

This debate often boils down to numbers. If your current neighborhood is highly sought-after, it might make financial sense to capitalize on that desirability through expansion, thereby increasing the value of your property without the risk of a downward shift in a new locale. On the other hand, relocating to an ascending neighborhood could offer greater long-term growth in home value.

It’s worth your time to talk with a real estate agent regarding the value of your current home and what will be the profit vs the value and equity available in purchasing in a comparable neighborhood.

Adding Out or Up?

Deciding whether to add out or put a second story on your home is a question that often comes down to individual lots and local zoning regulations. It’s generally less expensive to build up as you’re not adding a foundation and basement.

Adding up can save you garden space and might offer an excellent return, but it is usually more disruptive than building out.

The Implications of Moving with a Low-Interest Rate

For those enjoying a low mortgage rate, consider the implications of moving and taking on a new mortgage at potentially higher interest rates. It could dramatically increase your long-term financing costs, tipping the scales in favor of staying put and improving your current home.

The Option of a Tear Down

A more radical approach for some may be to tear down their existing house to build a new one. This can be an appealing option if the structure of the home does not allow for a practical addition, but it’s also the most extreme option in terms of inconvenience and displacement.

Choosing a Home Builder

If you decide to go through with an addition or a teardown, selecting the right contractor is paramount. Look for a reputable home builders with robust portfolios and stellar references. Discuss timelines earnestly and confirm whether they’ll manage all aspects of construction or rely on subcontractors.

Final Thoughts

The choice to expand your current home or buy a new one involves a matrix of personal and financial considerations. Beyond being merely cost-effective, it’s about the value of staying versus the allure of a new beginning. It’s a balance between enduring the temporary discomfort of renovations or the irksome process of moving.

In the end, whether you choose to intertwine fresh memories within the walls of an addition or chart a course towards a new neighborhood, the decision rests on what’s best for you and your loved ones in pursuing an upgraded lifestyle.

 

Free Residential Remodeling Financing Boston MA

Attitash Residential Construction Financing

In order to give back and help enrich our local New England business community, we decided to offer competitive financing plans for our customers. We cover a portion of the cost of your commercial renovation up-front, deferring your payments to a later date with zero percent interest.

Schedule a Consultation

Complete the form below or reach us by phone at 617-581-9815

    Looking to Build Your Dream Home or Transform the Home You're In?

    Speak with an Expert Who Can Help!

    Click Here to Send Us a Quick Message...

    All of Our New Home Builds Comes With a 10 Year Warranty & The 5 Star BONUS Package!