Need more living space? What to do?

A question from a client: The family is growing. Should I add on to my home or purchase a larger one?

My answers:

• Check your available funds. How much can you comfortably spend to remodel your home?
• Much extra space do you need? Is your lot large enough to build out, and will the local building codes allow it? Will your foundation support a second story?
• Do you have enough equity in your home? (You won't get back what you spend in a remodel--it's for you, not for your future buyer.)
• If you haven't done so already, look at affordable properties on today's market.