Looks like the one on Iris has a pending offer...

That second house would not make me happy driving up to at the price (I wouldn't pay $400K to tell you the truth). The way it was built on the lot is odd too. The only benefit is the park/lake across the way.

The house you're in is much nicer and still has a nice little quaint backyard. Is there a park in the vicinity? Too bad thats a golf course across the way

Which one has the better school district? That to me would be the main deciding factor because schools are always what create a market where resale is best.

Looks like house two was a flip and not that well done because it doesn't match the house. Also looks like your lot is a nicer piece of property. What about the surrounding neighborhood?

Surely these aren't the only two options in existence? I'd add a third, which is stay where you are until a more middle ground option (some back yard, house in between the two, size-wise) comes on the market. And as others have said, pay attention to schools and walkability.

The 'inside v. outside' reminds me of friends who bought a house with a big fenced yard -- for their dog. The dog wore a dirt path around the perimeter of the house as he ran around to follow their movements inside the house.

You live IN most houses.

Yes, school district is your trump card. I bought my lot specifically for the school district and sacrificed a few things.

My first house had a 40 x 100 lot total! My kids didn't care. They managed to play even in that small space.

#1 schools.

I like the larger home because

1. the original home has newer "bones" (2002 vs 1938)

2. it is a "remodel" vs a "flip" as the smaller home is

3. Yard - do kids play in yard or street? ans: Street (father of 4 living on 1/2 acre).

I have a yard with 3/4 of an acre. All of my neighbors are similar and the kids do play in them. But they ride their bikes, play football and baseball in the street on the cul de sac.

My parents built a house on a 1.4 acre lot so us kids would have room to play. We were on an isolated dead end street; no other kids to play with. It worked for my twin brothers, who had each other to play with, but not for me.

Kids still play outside? ;-)

My oldest is twenty and even when he was little, and we lived in a great area with acre+ lots, you hardly ever saw kids playing in the backyards or play sets. Most parents do not allow kids to play outside unless they are being supervised, so many just end up playing inside. Kids are also so scheduled with after school activities and sports that they have no time for just playing.

You also have to be lucky to have the right mix of kids as neighbors, where it might lead to spontaneous outside play. We've been lucky to have that a few times.

Just like you hardly see anyone using their pools ... and I live in Southern CA where it is warm most of the year.

What is most important is to be close to the schools, sports fields, karate classes, music classes, ballet classes, etc, etc, so you don't spend most of your time in a car (and in traffic) driving them around after school and on weekends.

This becomes even more important when you have 2, 3 or more kids and need to juggle all their activities.

When everything is no more than 5-10 minutes away you can sometimes get away with trying to be in two places at the same time!

Thanks everyone for your input so far! A few things I should have clarified:

The offer on Iris is ours. It's dependent on the sale of our home.

We will definitely be building on the back 1.2 acres in the next 5 years. Finding a lot anywhere in the Denver metro area is near impossible, usually you have to spend at least $600K on a scrape lot. So while this house would be "downsizing" for a while, we would be renting it out and moving to the back house after that point.

Kids are too young to have started school or activities yet so we will put them in whatever is close by. Both areas have access to great facilities. Parks are one block from each home, the park from the smaller house is a bigger and nicer park, though.

Schools: current "assigned" elementary school is better, but the county we are moving to is open enroll so we could put kids in an even better school if willing to drive them instead of bus (which we are). Middle and high schools for new area are significantly better than current location.

I think the biggest disadvantage of current home is the lack of yard space. We only have a front yard and can't install a privacy fence, which limits the ability to let kids play outside unattended. There is no back yard; just a driveway and garage in back.
Also can't see the kids from inside the house if playing in the yard due to home layout.
Unfortunately, kids can't play in street in either location...living in an urban area where people drive on their cellphones doesn't really allow for safe street play.

@chispa I have to say, your comment is a big part of why we want to do this. We actually WANT our kids to play outside, unsupervised. They can't do that at our current house. The new lot has lots of space to explore, have a garden, etc. I guess I'm tired of the current philosophy of big house, with everyone in their own separate area on their phones or tablets (we have a no screen policy). I'd rather foster appreciation for sunshine, outdoors, and unscheduled/unsupervised play. I think kids now are overscheduled...

Bri, I am very fortunate to live in an area where all of the neighborhood kids play together. At our high point, we had a regular 14-15 kids that all played outside everyday and after school. We have a stream that runs through our backyards that the kids would catch crayfish in and explore. But because it’s a cul de sac, they are ALWAYS outside. My son is now 13 and he and the boys play outside everyday after school for about 2-3 hours. He plays xbox but not allowed during the school week and limited to two hours on weekends.

I know that if we lived on a different street, we would have a different experience.

I have several friends who have large yards with long driveways and NONE of the kids are outside. I agree, a lot is the philosophy of the parents and the set-up.

Our house is also small and while we would love to move to a 2-3 acre lot with a farmhouse, we know that would isolate us and remove all spontaneous outside play and is not what we want for him. I have fond memories of going to the local parks (I grew up in NYC) every day and meeting the neighborhood kids to explore the golf course or play handball.

I love calling him in and then hearing from a distance, “Coming!”

Playing outside will depend on your children's personality. I would not in a million years make a decision on the fact that the "kids will have more room to play outside".

I have a 1.5 acre lot and built a swing set 2 years ago. How often do my two little ones go outside? Pretty much never. Even when I force them outside they are back in the house 10 min later!

We're at the end of the subdivision to boot so they have all this area to ride their bikes too!

I really like your current house. The only thing that is tough is if you feel values will be more likely to hold/grow or that you plan to stay a long time in this new house is that the middle school and high school are substantially better. Those are the important ones.

You will love your new home on 1.5 acres! There is a lot of room to play to build. You have found a pretty spot on earth!. I would do the same. :-)

Always base your decision on what you feel is best for your family. Resale is important, but you have to be able to enjoy the home while you're there. Property is nice to own if you plan on staying there for a long time. If you feel you might move often, you might want to go with A. As you mentioned, pros and cons to each. Go with your instinct. :) Hope this helped!

I will just add that while 1.5 acres sounds like a lot, make sure you will be able to subdivide or build another house on the property (I assume it is zoned single family). Where I live, each house has to be on at least an acre (state septic requirements). Depending on easements and lot lines etc, some lots have to be larger to accommodate, house, well and septic.