Add on or Buy?
Not sure if this is the right forum but here's my question. My husband and I currently own a small cape house in NJ. Bought it 4 yrs ago and put 30k into it. B/c of the market, it would sell for the same price we paid for it (345k) so we'd lose 30k we put in cash for upgrades plus 4% realtor selling fee + 8-10k in closing costs if we decide to sell and buy a bigger house. We'd walk away with 62k plus some savings we have.
We might be able to find the kind of house I'd want, for $360 give or take. With the $ we'd have this could be doable but we'd have nothing left for home improvements, even minor stuff.
The other option which we're leaving towards, is to add on a family room which i think might cost around 40k. Since we already paid off 20k of our existing mortgage, we wouldn't go over our original mortgage amount considering paying for half the addition with our own savings (the other half would be a loan). I think it would increase the value of the house 20k in this market.
Which option do you think is best? I know, might be hard to say, but would like thoughts.