Reasons you may need more space<\/h2>\n
According to Suits, the most common reasons people consider buying a bigger house include:<\/p>\n
- \n
- Relocating aging parents or a parent that has become recently widowed<\/b><\/li>\n
- Accommodating a family member who needs a first floor bedroom<\/b><\/li>\n
- Housing for a young adult child living at home to save money<\/b><\/li>\n
- Additional entertaining space for large family gatherings<\/b><\/li>\n<\/ul>\n
Preference for larger homes expanded in the early 2020s, as more families stayed together at home, making a bigger house an attractive solution to enable working from home. When buyers were considering a move, Suits often encouraged them to calculate the space they needed along with all the additional costs when buying a larger home.<\/p>\n
\u201cWhat we really like to do is break it down to people and say, hey, what is important to your family? Is it really space or is it how you use the space?\u201d<\/p>\n\n\n\n\n\n
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\n <\/div>\n \n Buying a Bigger House? Work With a Top Agent<\/h3>\n
Deciding to upgrade to a larger home can be a big step. Working with a top agent can help make sure your next place will meet your family’s needs.<\/p>\n \n
\n Find Agent<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n<\/div>\nHow to determine the \u201cfunctional\u201d square footage<\/h2>\n
Suits would often help the buyer consider if they actually needed more square footage<\/a> or if a different configuration was a better solution without dramatically increasing the costs.<\/p>\n
\u201cWith the square footage of it, it might just be that you need to lay out the space differently or that you don’t have what we call wasted space.\u201d<\/p>\n
According to Suits, each buyer has different needs for their space and may just want additional bedrooms, for example, but not more square footage. She also said some houses may include the basement in the square footage calculation depending on where the house is located and whether the basement is finished.<\/p>\n
In other words, thinking about square footage alone isn\u2019t enough; you should think about what needs and functions your home will have to fulfill.<\/p>\n
<\/div>\nCosts that can make a bigger house more expensive<\/h2>\n
A larger house is usually going to be more expensive because there is more space that needs to be maintained. Areas that typically contribute to increased costs include:<\/p>\n
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- Increased mortgage payment (due to higher interest rate and insurance)<\/li>\n
- Overall maintenance<\/a> of the house and systems (such as heating and cooling)<\/li>\n
- Higher utility bills (water, electricity, and sewer)<\/li>\n
- Higher taxes (usually based on the square footage and amenities)<\/li>\n<\/ul>\n
Mortgage costs<\/h3>\n
Typically a bigger home has a larger price tag, all else being equal. According to Suits, some people decide to move to other states that could give them more square footage and not increase their costs.<\/p>\n
\u201cIf you\u2019re coming from California to Atlanta can get you a lot more house for the money, but again, it\u2019s more upkeep, it\u2019s more furniture you have to buy,\u201d says Suits.<\/p>\n
Interest rate<\/h3>\n
A big concern for many buyers over the last year, was the increase in mortgage interest rates. According to The Mortgage Reports<\/a>, the average 30-year fixed interest rate in 2022 was 3.22%. As of January 5, 2023, the interest rate was 6.48% which is an increase of 3.26%. This difference means buyers will pay hundreds of dollars more per month, and thousands of dollars more in interest costs over the life of the loan.<\/p>\n
In the example below, you can see how much of a difference the interest rate can make, even when everything else about the homes and mortgage are identical:<\/p>\n
- Accommodating a family member who needs a first floor bedroom<\/b><\/li>\n