Should I Build a Second Story or Move?

This is a common question asked here at Red House, and the answer is: It’s complicated, but worth your consideration. We find that the clients who ask this question fall into two separate camps. There are those who want to move but are wondering if adding the space they need is cheaper. Then, there are clients who could do either. They love their home and location, but maybe moving could offer other benefits. For them, it comes down to convenience. So, when a client approaches us with the question: Is building a second story on my home worth it? We feel it’s best to weigh the pros and cons of moving versus building a second story, comparing costs, unexpected long-term impacts, and the overall process of achieving either outcome. Let’s get into it.

How Much Does it Cost to Build a Second Story?

Multiple factors go into this, but we will work with some averages and common scenarios we have seen when building a second story on a home.

Let’s assume some facts about the situation: the current home is about 1,800 square feet and has 3 bedrooms and 2 bathrooms. You’re hoping for a sizeable second story at 1,000 sqft. which would be enough for two more bedrooms and at least one more bathroom. Let’s total up what goes into this process:

• 1,000 SQFT. Second Floor construction: Average $417,500
• New 3-Piece Bathroom: Average $77,09
• Cosmetic refinishing (Floor refinishing, painting and plastering, wiring, base molding, and crown molding): Average $26,370
• Staircase construction: Average $30,060
• Basic 25 SQFT. Closet: Average $1753
• 8 Marvin Elevate wood/fiberglass windows: Average $30,140
• Mini split central air system: $9,185

Total: ~$592,098
Estimated Added Value to Home: ~$720,000

Adding a second story is a significant financial undertaking, but the added value and overall benefits of adding a second story to your home should not be overlooked. When working with a design-build firm like Red House, the process can be streamlined and intricately planned, avoiding pitfalls while ensuring your design is of the highest quality, guaranteeing a return on investment. Now, let’s break down the options for moving and what costs are entailed in this process.

How Much Does It Really Cost To Move?

Let’s assume your home’s value and expected listing price are $850,000, and add up some of the costs of listing your home in 2025. Let’s also assume you are moving within the area but needing more space (hence the looking into building an addition!). So, you’re looking for two more bedrooms and at least one more bathroom, putting your options around $1.2Million+

Real Estate Agent Commissions~$44,965

In Rhode Island, the average real estate commission is approximately 5.29% of the home’s sale price. For an $850,000 home, this equates to about $44,965.

Seller Closing Costs + Your Closing Costs as a Buyer ~$71,500

Sellers typically incur closing costs around 2.76% of the home’s sale price, covering expenses like attorney fees, transfer taxes, and title insurance. For an $850,000 home, this amounts to approximately $23,500. As a buyer, you can expect to pay between 3% to 5% of the home’s purchase price in closing costs, including loan origination fees, appraisal fees, and prepaid expenses. For a $ 1.2 million home, this ranges from $36,000 to $60,000.

Moving Services~$25,000

The cost of moving high-end furnishings varies based on distance and services used. A local move might cost between $15,000 and $20,000, while a long-distance move can range from $25,000 to $30,000.

New Furnishings & Appliances~$200,000

Furnishing a new luxury home can be a significant expense. On average, homeowners spend between $100,000 and $500,000 on furniture and appliances, depending on the size of the home and quality of items purchased.

Potential Lost or Damaged Items~$3,000

During the moving process, there’s a risk of items being lost or damaged. While this cost is variable, setting aside $1,000 to $5,000 for repairs or replacements is prudent.

Grand Total: ~$346,465

Unforseen But Common Costs During Moving

Temporary Housing & Storage: ~$8,000

Timelines do not always sync up, if your home sells before you find a place you love, you will have to resort to temporary housing!

• Short-term rentals in the same luxury bracket ($3,000 – $10,000+ for a month)
• Secure, climate-controlled storage for valuable furniture, art, or wine collections ($1,000 – $5,000+)

Utility Transfer: ~$2,500

• Utility deposits and activation fees (water, gas, electric, internet, security) – can easily be $500 – $2,000
• Specialized services like security system transfers, pool maintenance, or irrigation system activation – $500 – $3,000

Home Repairs: ~$30,000

From fixing the leaky roof, replacing the septic, to bringing an addition up to code, this unexpected expense can add up quickly. Buyers in desirable locations expect homes in pristine condition, which can mean:
Pre-sale updates (fresh paint, minor repairs, HVAC servicing, landscaping) – $10,000 – $50,000

Custom Staging: ~$15,000

As we turn towards a buyer’s market, you’re going to want to stand out! Custom staging to match the luxury market – $5,000 – $20,000+

New Furniture and Décor: ~$50,000

Even when moving high-end pieces, they may not suit the new space:

• Window treatments, rugs, and custom furniture for different layouts – $10,000 – $100,000+
• Outdoor furniture for new patios, decks, or pools – $5,000 – $30,000

Pet and/or Childcare: ~$2,000

Luxury homes often have elaborate moving schedules and staging, so many families:

• Board pets or hire pet-sitters – $500 – $2,000
• Use professional childcare to avoid disruptions – $500 – $2,000

Total for Unexpected Costs: ~$105,000

Total for Traditional Moving Costs: ~$326,465

Grand Total: ~$431,465

Renovating After Moving?

Unless you are willing to add a significant amount to your budget, you’ll unlikely find a home that you feel is perfect. This is something essential to consider during your search for more space. Do you simply want more space? Or is there a whole checklist of things you want from your home that goes far beyond square footage? Many families who move find themselves looking into renovations within the first year of moving. These projects typically involve a kitchen, a bathroom, an addition, and more.

Should I Build a Second Story or Move?

Now, going back to those two groups of clients needing more space:

For those of you simply weighing the costs of building a second story versus moving, moving may be your answer, but moving costs are so variable that it may not be the more affordable option in the long run, especially if renovations come into play in your new home.

For those of you wondering:

• What is more convenient?
• What will create less stress?
• What will require less time away from work?
• What will be a smoother process?

Adding a second story is the better option. If you love your neighborhood, the memories in your home, your yard you’ve spent years on, then adding a second story will only add value to your home and your life. If you need a streamlined process with minimal surprise, an entire team to help guide you through decisions, cohesive budgeting strategies and phasing options, then adding a second story is the answer.

We Can Help You Weigh the Pros & Cons

The Red House Team is extremely experienced in projects involving additions and we’re here to help you come to a decision that suits your lifestyle and needs best. Book a discovery call, and tell us about your home and ideas. We can offer a preliminary budget and starting point for building your second story. As we progress through, site visits and design plans will help you better understand your options, leading you to a clearer decision on whether you want to build a second story or move to a new home. Our discovery calls are commitment-free and can ease this decision for you! Let’s talk.