6 Reasons Why Buying a Bigger House Isn’t Always a Good Idea

Having more space is always a good thing, right? Well, not exactly. What you gain in square footage when buying a bigger house comes along with a number of hidden costs that you might not have considered. And while it’s certainly true that many people simply outgrow their homes as their families expand (including the rising number of Americans who are living in multigenerational households), if you’re thinking of moving to a bigger house just because it seems like an attractive thing to do, it’s worth putting in some additional thought before taking the plunge.

Buying a bigger house doesn’t just mean having more space for all of your stuff. Here are six reasons why you should think twice before making the move to a larger home.

It’s Not Just the Mortgage That’s More Expensive

    • Higher closing costs
    • Higher furnishing costs
    • Higher property taxes
    • Higher homeowners insurance costs
    • Higher utility costs
    • Higher repair and maintenance costs
    • Higher energy costs
    • Higher renovation costs

    A Bigger House Isn’t a Guaranteed Better Investment

    Ego Shouldn’t Be a Key Driver in Home Buying

      • Location
      • Financial solvency
      • Lifestyle goals
      • Environmental impact
      • Home condition

      More Space Doesn’t Always Mean More Usable Space

      You Might Have to Sacrifice on Location

      6. Bigger Homes Mean Bigger Responsibilities

      How Much Home Can You Afford?

      When it comes to making a smart investment with your home purchase, put less stress on size and more on budget. Most mortgage lenders will approve you for significantly more money than you should actually be spending, and you can’t necessarily rely on your realtor to steer you in the direction of the home that’s the best fit for your finances now and later. If you’re really set on more square feet, use a calculator to give you an estimate of how much home you can afford (SmartAsset has a good one) and then see how you can maximize square footage within that limit.

      The hidden costs of buying a bigger house aren’t always apparent right away. It’s important that you consider not just your current needs but your needs—and the needs of your family—in the future before you sign on to buy a big house. Bigger isn’t always better, and in fact, if current market trends hold then it’s likely that a bigger home is actually going to be a liability later on.

      There are so many things to factor in when choosing your ideal home, and size is just one of them. Make sure to work with a qualified and experienced real estate agent who can guide you through the process of figuring out your needs, as well as a financial advisor who can help ensure you don’t make a poor investment. While you may ultimately decide that buying a bigger house is worth the risk that comes along with it, you should at least have as clear of a picture in advance as you can of what you’re getting into.