Buying A Bigger House | Bankrate

If your home has begun to feel a little too cramped or you’re planning to expand your family, buying a larger home may seem like the ideal solution. But bigger homes also come with bigger costs — and not just the increased monthly mortgage payments. Before you make the leap into additional square footage, be sure you understand what you’re getting into. Here’s a breakdown of what to consider.

Is buying a bigger house a good idea?

There are many reasons why a bigger home might seem like exactly what you need in your life. Perhaps your family has grown over the years, or you have parents or extended family who need to live with you as they age. Or maybe you’re one of the many Americans who now work from home, and you need space for a home office. You may also simply be earning more money than you were when you first bought, and find that you can now afford a more spacious home or more luxurious amenities than you could then.

“Buying a bigger house can be a smart move in several scenarios,” says Erin Hybart, a real estate agent in the Baton Rouge, Louisiana area and creator of the platform Re-Erin. “It’s a great idea if your family has grown or your current space no longer suits the functions of your life. Upgrading could align with your evolving needs.”

If you can afford it, that is. Before you start looking at houses, look into all of the expenses that come with an upgrade. No matter how cramped your current home feels, a bigger one may not be the best solution if your budget is not able to stretch any further.

Costs associated with a bigger house

How much house can you afford to buy? Beyond the home’s actual list price, you’ll need to budget for a long list of increased expenses that come with larger homes. For starters, your mortgage payments will almost certainly be steeper. Other costs that are likely to be higher with a bigger house include:

• Property taxes: Property taxes have been steadily ticking upward in the U.S., according to an analysis by ATTOM Data. The average property tax bill for a single-family home in the U.S. increased by 1.8 percent in 2021 and another 3 percent in 2022, it shows. Property tax rates vary by state, but the average for a single-family home in 2022, the last year for which there is complete data, was $3,901.
• Homeowners insurance: The cost of homeowners insurance varies based on many different factors, one of which is the square footage of the home. Your monthly premium is likely to be higher for a larger home.
• Utilities: Bigger homes require more electricity to light, more natural gas to heat in winter and more AC power to cool off in summer. Water bills may also be higher with multiple bathrooms.
• Maintenance: With bigger properties come bigger maintenance bills, too. Expect to spend more on day-to-day upkeep, whether it’s landscaping and mowing a spacious yard, plowing snow from a long driveway or painting more square feet of wall space.
• Furnishings: When you have more rooms…