So now you have a new addition to the family - or your present house just seems to be bulging at the seams! The question is - do we add on? Or do we move?
First, look at your neighborhood. If you overbuild - i.e. if you have the "best house in the worst neighborhood' - you will probably not recoup your renovation dollars when you sell. The type of neighborhood you live in will put a ceiling on how much future purchasers are willing to pay, no matter how lovely your home.
If the neighborhood is not an issue then next examine your tolerance for dealing with the hassle of renovating versus dealing with the process of finding a more suitable house and moving. Should you decide to add on, you would need to find out if your house can, structurally, allow you to do the renovations without spending a fortune to reinforce the existing structure before you begin adding to it.
You also need to check your zoning regulations as to the square footage that you are allowed to build on and how close to property lines you may build.
If you are unsure as to what to do, you might find the decision easier to make if you get a quote from a builder for your planned renovations and then add that figure to the price your Realtor® feels your house will sell for.
Armed with those figures go out with your Realtor® to see what you can purchase with that amount. You may find that you can afford to move into a home that provides all you want and...... The work is all done for you!