Add an Addition or Move (Realtor, house, capital, property)

[ABCDom]

My wife and I had our first home built in July of 2008. Since then, we have had two children and she is pregnant with our third. Needless to say, we're quickly running out of space. Should we build and addition and plan on living in the house for at least another 10 years or should we relocate to a new house (selling this house)?

I realize that a lot of this depends on the market, but aside from that, how much money would we lose by selling our current home? Because it's been more than two years, we won't have to pay capital gains taxes, but I always hear that you should live in a house for at least five years before selling. Can any advise?

Thank in advance...

[chicagoRE]

I would not worry about capital gains tax because you have been in the property for only 2 years. You will most likely loose a lot of money. Only you can decide if that is the route you want to go.

[cheryjohns]

You need to get with a local Realtor to see what your home would bring in the current market in your area. Also get bids on adding an addition. Ask the Realtor what would be considered an over-build in your neighborhood. You don't want to spend $60K by putting on two bedrooms and going way over the norm in your particular subdivision. All of that info will give you your answer.

[Padgett2]

Children that close together in age often do well sharing a room. It makes it easier on Mom too.

Adding on a house, does not always turn out well. It also can make a house hard to sell if it isn't done right.

Take your time and look around. Your dream house may be waiting on you. In the meantime, stick those kids together.

[chicagojlo]

I agree, your kids can share rooms for a few years yet. If the addition or move don't turn out to be options then staying put would be perfectly possible for a while.