Need a bit more information. It sounds like you have one child. Is that correct? If so, two bedrooms and 1/2 baths should be adequate. Since you want to move anyway in the long run, my suggestion is you contact a realtor in the area you prefer to live in and tell that person exactly what you are looking for. Keep an eye on the market and bide your time.

I would save my money and suffer through until a home comes available that you want.

I think only you can decide if it’s worth it - would you have to finance it? You’d likely need to find an architect to help you with plans, what’s allowed by the town etc.. so definitely some expenses on the front end to think about

FWIW we added a master suite, moved our kitchen etc when our boys were in elementary school bc we loved our neighbors and neighborhood, we stayed put thru all of school - since we knew we wouldn’t move again it was so worth it - it was an 18 month process starting with planning

so not knowing much about the situation if it were me, I would stay put, save my pennies for the next house and re-think about how I lived in the house, if you ask for ideas on here - so many pros and talented folks will help

ETA your garage may not have been built to support a second story so I would want to know that first

Sounds like an episode of Love it or List it.

Tough choices. For me it would be about location. Are the schools good, commute to work and safe neighborhood would factor into my choice.. Would the new addition fit the style of the house? Would I wind up dumping money into a place that will never really get bigger. It will always be a small house. If I were living in California than making the choice renovate would be high on my list but living in DC I would find another home. The outside factors like tax on the property could be a huge influence.

What would it cost to move?

vs

What would it cost to renovate?

So much to think about.

I guess it depends on the cost of real estate vs. the cost of construction in your area. When my husband and I married 18 years ago and were combining families, we built an addition onto his house because it was cheaper for us to do it that way. We'd never have been able to afford a 4-bedroom house in the neighborhoods we wanted to live in at the time. The caveat, however, is that 18 years ago, contractors were not nearly as busy as they are now. I think if that decision were to be made today, there might have been a different outcome.

Get some construction estimates for this job and do a cost/benefit analysis to figure out which way to go.

For me, if I knew I was going to move in 8 years in order to provide better schools for my kids, I would NOT make those improvements. Since your girls will be 12 or so when you want to move, their need for more room before that time should be minimal. If they have to share a room until then, it might not be so hard as it would be if they were teens. Or they could take turns with the tiny bedroom. I might see about turning the ½ bath to a full bath, if that's possible.

Think about who will be buying your house. If the upper grade schools are bad, people with kids might not be your target buyers, so more rooms might not be as important to them, as it might be for families moving in.

Good luck in your decision!

When we built the basement wasn't finished so our girl and boy shared a room until it was. I'd do nothing and keep saving for the move.

Have you priced it out? in my area it would take way more time to do this sort of addition as well. if middle school is mediocre i might save my money and plan on moving after elementary. we have similar sized house and i would just have the girls share a bedroom.

I would not pour any money into a house, that has some not so great schools. Save all the money you can, and find a house in another location, that has good schools, where you wont have to move, in a few years. Someone above mentioned, your garage not supporting an upper level. Thats one big thing you would have to find out, because, a lot of garages are not built to support and upper level, so the garage, may have to be torn down, and rebuilt too.

The addition you're contemplating will likely be far more expensive than you think. Save your money, see if interest rates fall and keep looking in towns with better schools. You would probably come out ahead buying a fixer upper and renovating in a better area.

I am thinking what latifolia said. Mostly because of how expensive Reno’s have gotten especially adding a floor. But it would be great if you could get some more info on the ground that could help you think things through using “ facts”: garage load- bearing issue; maybe looking around in “ the good school” areas a bit with a realtor— not that you’d be buying now, not wringing hands over current interest rates, but what are the existing houses like, in the 3-4 BR floorplans. Then, how close would the “ money not spent” come toward a new ( to you) upsized house? Also, what are the comps in your own neighborhood. And, would you be in a situation to be “ sort of looking” and jump if somcame up? (I generally think that’s hard because “ looking” can be pretty consuming, you have to go see the house, and jumping means quickly analyzing the situation and if it’s actually a good deal, getting right on the offer.)

Anyway, lots to consider.

A few years ago moving would have been cheaper but now, at least for me, with a 2.5 percent interest rate moving would cost more with the much higher interest rates. Did you purchase when rates were lower? Will you use cash or are you getting a loan and is private school a viable option if you stayed?

First a garage usually is not built to add a level and also often not alowed to do this in many places . I would never have a bedroom above a garage so that would be a no for me. Do you have a basement ? In Canada we have 5 % interest and it seems people are still shopping for homes. Renovations are great but they are never as cheap as you think they will be . 200sq ft really just a nice sized bedroom and bath so IMO nt worth that money. I think private school might be cheaper than the addition. My sister and I shared a bedroom for a short tome it was not ideal but came to an end before we killed eachother . I think a lot depends on your budget and you have time to think. Who knows by the time your kids are in middle school the school might be great .

Add 250K to what the house is valued at now. What would that buy you now?

Now, look at your neighborhood for a similar size home to what the project would result in. What would it sell for.? Not 250K more than yours. What would maybe 50K added to the house‘s current value, be able to buy you? Because you historically lose way more money in remodeling than it adds to your home value. Your neighborhood comps are what control your home’s value. Despite what HGTV wants you to believe. $1 spent is very very lucky to get you .80. And this is not a project that would return that high of a return.

Buy the "worst" house, in the BEST or nearly best school district and wait out the improvements to a previously enjoyed home.

Always a better value over time, no matter where you live. In your own words, you have "eight to ten years" before school becomes an issue. .....but sooner is better. Don't waste money, SAVE money.

There can be vast differences in achievement between schools, even lower grades. I'd want out before middle school : ) and long before "rough" became an issue.

In the 60's in the flight from city to suburb, my parents moved us after I finished third grade. From city to good suburb, to avoid a rough high school. I was behind my peer group in the fourth grade... ..............yes, behind : ) Nice not to play catch up.

Answering your question from a financial point of view is impossible. Too many variables we can't see. No one can know. I suggest you:

Save the money for private schools. All public schools are going to be 'rough' it gets worse as kids get older but they are all suspect. These are the same kids in the elementary that grow up and populate the high school you fear!!!

Moving adolescents away from their buddies isn't fun for parents. You really ought to look into private schools now. Move now if needed.

Putting a public school educated student in private will ALWAYS = behind for said student. Mine had to move from private to public at 7th grade. They were a year++ (depending on the subject) ahead of said 'good public schools'.

Two girls =sharing a room. Use the third room as a study hall, get creative sleep on one spot have the girls 'live'/dress/hang in the other. As said above take the lesser HOUSE for a better LIFE.

Interesting debate. My son and DIL bought a home in the top school district. Two years later the neighborhood was re-zoned and class size went from 18 to 32 for grades K-5. School rating went from A to C. Everyone was in an uproar. Luckily, it all got changed to something much more reasonable. Conversely, my other home was in a D school zone. Within 5 years or so, it went to B+. My point: don’t count on schools’ ratings staying consistent.

It’s a financial decision. Selling a house is easy, but buying one is very difficult. You may have a hard time buying a house in your preferred location. I would improve the current house rather than jump in the home buying market. Honestly no one knows what the market (or schools) will be like in 10 years, so crunch numbers and understand that you may be able to sell your house but get stuck unable to buy the house you want due to the hot market (worst case scenario).

Any private high schools in the area?