15 Questions To Ask Yourself Before Upsizing Your Home

Maybe the first home you bought was a starter home -- one you expected to outgrow after a handful of years. Or maybe you thought you were buying your forever home but now are eager to score more space. Upsizing your home could improve your quality of life. But before you take that leap, be sure to run through these key questions.

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If you're having a hard time affording your current mortgage and housing expenses, upsizing is a bad idea. Unless you relocate to a part of the country where housing is much cheaper, upsizing will generally mean adding to your housing costs. That's not a great idea if money is already tight.

ALSO READ: How Much House Can I Afford?

Upsizing could mean taking on a much higher mortgage. And that's something you'll need to make sure you can handle. Before looking at larger homes, run some numbers to see what monthly payment you might be looking at.

If you stay in the same town but upsize your home, you can expect your property tax bill to rise. Now, if you live someplace with affordable taxes, that may not be an issue. But if taxes are high in your neck of the woods, you may not be able to absorb an increase easily.

ALSO READ: Should You Move Due to Soaring Property Taxes?

The more space you have, the more it might cost to insure your home. Part of the reason is that your insurance policy needs to include coverage in case your home is destroyed and must be replaced. Before committing to a bigger home, you may want to do some research to see what your homeowners insurance premiums might look like.

The more square feet you have to heat and cool, the more you might spend on utilities. And unfortunately, it's hard to estimate utility costs ahead of time because they'll depend on not just your personal usage but also the age and state of your home's various systems. If you're upsizing, you may want to err on the side of overestimating your utility bill increases to make sure they fit into your budget.

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A larger home could result in more maintenance -- both inside and out. Make sure you can handle the costs to maintain a bigger home so you don't wind up cash-strapped.

Home maintenance isn't just expensive. It can also be time-consuming. Make sure you have the time to take on that extra work before buying a larger home.

ALSO READ: Why We're Doing More Home Maintenance Ourselves This Year

It may be possible to upsize affordably by moving to an area where housing is less expensive on the whole. But if you have children, going that route could mean enrolling in a new school district. It's important to consider how that might impact your kids.

The more rooms your home has, the more furniture you're apt to need. And that could get expensive. Granted, you don't necessarily have to furnish your new home right away -- but you may want to.

ALSO READ: How a Furniture Purchase Almost Derailed My Mortgage Loan

Mortgage rates are higher nowadays than they were last year. And that means if you upsize now and sign a mortgage, your monthly payments might be difficult to manage. It could pay to hold off on upsizing to see whether rates come down.

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If you live in a two-bedroom home and your family has gone from two people to five, it's easy to see how your current setup just doesn't work. But there's a difference between needing more space and wanting it. And if you're in the latter boat, you may want to think of different ways to make your current home work.

Upsizing could mean moving to a new town or part of the country. So before you take that step, find out whether it's possible to add living space to your current home. For instance, putting an addition on your home could give you the extra room you need.

ALSO READ: Read This Before Putting an Addition on Your Home

Moving is expensive. On top of paying higher housing costs when you upsize your home, you'll need to cover the cost of a move. Granted, this would hold true even if you were moving to a smaller home, but it's an expense to consider nonetheless.

It's one thing to upsize if your kids are in elementary school and you expect them to live at home for another decade or more. But upsizing may not make sense if your kids are on the cusp of going to college. It takes time to recoup the costs of moving and signing a mortgage. If you upsize now and only end up needing your larger home for three years, you may not make your money back if you decide to sell it.

ALSO READ: 3 Money Moves to Make Before Your Kids Head Back to College

Upsizing could mean taking on much higher housing expenses. And while a larger home might make you happy, it could also mean giving up other things you love, whether that's vacations, restaurant meals, or something entirely different. Make sure you're willing to make that sacrifice.

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In some cases, it pays to upsize your home -- especially if you can do so in a way that leaves you plenty of financial breathing room. But if you're on the fence about upsizing, be sure to run through these questions first. The last thing you want to do is commit to a larger home only to realize you made the wrong choice.

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