Everybody wants a bigger house. Well, almost everybody – I’m sure there are some billionaires who are happy with their mansions – but for the rest of us, the idea of a bigger house is usually alluring. And with the still depressed prices in much of the market place, and the still low interest rates, a larger house is more affordable than ever. But there is more to consider when upgrading to a bigger home than just the larger mortgage payment.

The first thing to consider is why you want to move. Is it because all of your friends have big houses, or is because you have 4 kids in a two bedroom house? If you need the space, then great; if you need the status, then the new house may not be right.

It is also important to remember the added costs of a bigger house. Bigger houses have bigger taxes, bigger homeowners insurance, bigger utility bills, and bigger home maintenance costs. So just because can squeeze your budget to get into a bigger house, that doesn’t mean you can afford the new added costs.

Bigger houses often need extra furniture. Going back to the four kids in a two bedroom house example, if you upgrade to a 5 bedroom house, you need to now furnish 5 bedrooms. Similarly, if you add a formal dining room or a dedicated office space, those areas, also, will need new furniture.

Finally, you need to think about your current house. Is there enough equity in your home to afford realtor fees, closing costs, and moving expenses? If not, you need to have savings to cover that.

If you are considering an upgrade to a bigger home, please contact me and I will help you determine if it makes sense, financially. And if you have anything to add about what to consider when upgrading to a bigger home, please leave a comment.