Just like everything in life, people’s needs change. Sometimes having another child or having a child move out of the home will trigger a change in the needs of a home.
I often get the question on whether it is better to build an addition to the house or to sell and buy another home. The short answer to this question is, it depends.
What I mean by that is, if you plan on building onto your home, you need to plan to be there for a long time. An addition will not provide the rate of return needed to cover the investment if it is sold in the near future.
So, what it really comes down to is the location of the home. Are you happy with the neighborhood? Are you happy with the school district? Are you happy with the overall location of where the home sits? If you answered “yes” to these questions, then it would be a good idea to build on and stay in your current home.
If you answered “no” to any of these questions, then it would be wise to sell and buy a bigger home in a more desirable location. Over time you will get a good rate of return for an addition that you put onto your home, but you will not get the rate of return in the short run.
If you have any questions, please feel free to call me at 215-630-9363.
PHOTO CAP: Joe Cairo