Buying a larger home is a major decision. Weighing a few main points can help make sure it’s the right one.
Maybe you’re feeling the squeeze from family visits over the holidays, maybe your own family is growing or maybe you simply want more space.
You’re not alone. In the United States, the average number of square feet per person in the median new home has nearly doubled from the 1970s to the 2010s.
Whatever your reasons for considering an upsize, many factors await your consideration. All of the below recommendations apply to current homeowners, but if you’re looking to upsize from a rental, many of them still stand. Let’s look at a few of the big ones.
What would you keep, and what would you change?
Take a qualitative inventory of your current home. Chances are that you had good reasons to choose it when you did. What do you like about it? How’s the location? What about the neighborhood? Do you have enough bathrooms? Can’t live without that breakfast nook? Write it all down.
Now list what you’d change. Do you want more bedrooms, or more bedrooms and a backyard? Is a certain neighborhood or community a deal-maker? Combine what you like about your current home with what you’d change about it, and track your considerations in this downloadable checklist. This can go a long way toward identifying criteria and must-haves for your next move.
Is it a good time to upsize?
Demographic trends, interest rates, the strength of the economy, and relevant government incentives are constantly in flux, and all have a major influence on real estate prices. It’s wise to consider a few main points as you weigh your upsizing options.
To start, see what home values — or rents, if you’re a renter — are doing in your area, and what they’re doing where you’d like to live. Whether you’re planning to move across the country or just down the street, it pays to know which way prices are trending.
Nationwide, we’re in a long-term competitive market, with the Zillow Home Value Index forecast to continue to rise over the next year. That means that as a homeowner you’re likely to fetch more for your home, but you’re also likely to pay more for your upsize. However, if you’re looking to move from a competitive market to somewhere less aggressive, you may benefit from the transition.
Lastly, talk to your agent to get a temperature check of the area where you want to buy. Agents are in touch with these trends week in and week out, and they’ll likely have a ready answer. If you need help finding an agent, start here. Agents will often look at comparable sales — called comps in the industry — in your area to help determine home values and trends. Learn more about comps here.
How much upsize can you afford?
Whether you currently rent or own, you’ll need to decide exactly how much upsizing you can afford in your desired location. If you have a price range in mind for your desired number of bedrooms and bathrooms or square footage, you can do some rough calculations with our Mortgage Calculator to see how it would square with your budget. Or, you can start with plugging your annual income into our Affordability Calculator to determine how much you may want to spend. You can also see what mortgage rates are doing in your desired area.
If you’re looking to upsize from a home you already own, see how much your home is worth and try the Home Sale Proceeds Calculator, where you can factor in sale prep and repair costs, closing costs, and more. Unsurprisingly, upsizing to a larger home often comes with higher overall costs, but that largely depends on the market conditions of where you plan to move.
New construction, existing home, or remodel?
If you’re set on upsizing, you’ve got options.
Custom home construction
New construction of a custom home may be an attractive option, especially if you’ve got a very specific wish list. But building a new home will limit your target areas to those where new construction is possible — or where you can find a viable teardown opportunity. Building a custom home will add significantly to your decision tree. You’ll want to account for negotiating and working with an architect and builder, as well as making an estimate of how long it will take to build your home.
Spec and tract homes
Speculative homes — often referred to as “spec homes” — and tract homes offer a way to sidestep some of the complications of a custom build, but note that these homes generally come with features and finishes the builder thinks will appeal to the greatest number of potential buyers, and they’re usually built before a buyer has signed on.
For a fuller breakdown on types of new homes, and the pros and cons of each, see the Buyer’s Guide section on different types of new construction.
Existing homes
Existing home inventories present the most flexibility in terms of location, especially if you’re looking to upsize in or around a more urban area, but they’re generally less accommodating to buyers with longer lists of specific criteria. Be ready to pare back some of those home-specific essentials if location is a major priority for you.
Remodeling
Remodeling, which involves adapting the structure and/or the function of parts or all of your home, can be an affordable alternative to upsizing for homeowners. If you’re asking yourself if you should remodel or move on, you’re really asking: Can I change what I dislike about my current home with a remodel?
Remodeling won’t help much if you want to change your neighborhood or commute. Further, some changes won’t be possible at all, and others may be complicated to execute. You’ll need to carefully price out any remodeling projects before the work starts, as prices can spiral out of control if you haven’t planned meticulously. But if an extra bedroom or more space is all you need, it’s worth consideration.
Owning the land around your home also provides the opportunity for add-ons or an accessory dwelling unit, provided that they’re permitted by local laws and HOA rules.
Read more about whether to remodel or move here, and take our quiz to learn more about which option may be a good fit for you.
Upsizing can be one of the largest investments you make in your lifetime. Careful thought and deliberation will help ensure that your new home still meets your needs for many years to come. If you’re ready to start searching, see all the ways the Zillow search tool can help.