The Goldilocks Complex

"Location, location, location" may be the three most important rules of real estate. But when shopping for a home, size can matter at least as much as the address - which is why it's essential to select a home that meets your spatial and square footage requirements.

Consider that the average interior size of a single-family home has grown from approximately 1,800 square feet in the years following World War II to about 2,300 square feet today, says Ron Throupe, assistant professor in the Burns School of Real Estate and Construction Management at the University of Denver. A recent survey of builders by the National Association of Home Builders reveals, however, that the average new home floor plan is expected to decrease to roughly 2,150 square feet by 2015.

According to data from the most recent U.S. Census, 34 percent of new single-family homes completed in 2009 were no larger than 1,800 square feet, while 27 percent were between 1,800 and 2,399 square feet. But while the average square footage may be trending toward a more modest footprint, that doesn't mean your next home will or should be smaller.

"It's important that buyers move into homes that match their lifestyles," says Adam Iobst, broker/owner at A-Team Realty in Silver Spring, Md. "The answers to essential lifestyle questions will determine what factors they should be considering when home shopping. Do they cook at home often? Do they entertain guests often? How many people will be living in their next home? Do they have pets?"

Other vital criteria to consider when it comes to spatial requirements include:

• Family future-proofing. Will you have enough space to accommodate future family members?

• Expandability. Can you add a room addition or convert the basement?

• Work and play. Do you need an office, study or craft room?

• Bathrooms. Are you willing to share, or do certain family members need their own bath?

"The square footage you and your family require is a matter of personal preference," says Angela Self, co-founder of the Smart Cookies money group in Vancouver, Canada. "We worked with a family who was contemplating downsizing, so we went over to their home and roped off the basement, dining room, one bathroom and part of the living room. We asked the family to live in the smaller space for two weeks. They realized they didn't miss the space, in fact they preferred the closeness."

If you're planning to downsize, keep in mind that two-bedroom homes may be a more difficult sale later on, so it may be best to stick to a traditional three-bedroom home, says Lisa Johnson Sevajian, with Coldwell Banker Residential Brokerage in Andover, Mass. Additionally, consider your storage needs objectively and prepare to part with belongings you no longer need or want if you do choose a smaller home.

Many downsizers are baby boomers who no longer seek large homes with five bedrooms and expansive yards, says Stephen Melman, director of economic services for the National Association of Home Builders, Washington D.C. Boomers more likely to want a well-designed home with a bedroom equipped for hosting grandkids, boomerang children, aging parents or caregivers. Up-sizers, on the other hand, are typically young families who expect to or have already grown out of their homes and now prefer a residence with a combination of kitchen, family room and living room, walk-in closets in the master bedroom, and a well-designed laundry room.

Move-up purchasers, conversely, are often looking for a home with 500 to 1,500 more square feet than they currently have, Iobst says.

"If you're single or just two people, most probably a two- to three-bedroom home will do using one bedroom as a spare and the other as a study," says Greg Frost, founder of Frost Mortgage Lending Group in Albuquerque, N.M. "Typically, 1,500 to 1,750 square feet is a good range for one or two people,"