This is not a decision any of us could make for you. All we really can do is ask you questions to help you decide. So here's what I would ask you to think about:

On House 1:

1. Could you move into the home as is without finishing the loft and be comfortable?

2. Can the garden be improved to be more "scenic", whatever that means to you?

3. How loud is the highway really? Does this mean that you have good access to the highway? Is the highway likely to get busier?

On House 2:

1. How do you feel about 3 floors with a 1.5 year old?

2. How "small" is the kitchen? What makes the kitchen "dark"? Can either descriptions be changed easily?

3. On which floor(s) would your family really live? Would the top floor just be wasted space because you don't use the living room?

I am sure that others will add some questions for you to consider. Some will also offer you their opinions on the houses based solely on your description of them.

The layout of the townhouse does not sound at all practical or appealing to me. Maybe I’m misunderstanding what you’ve described? You’re saying that the kitchen (presumably with an eating area) is on the ground level and the living room is two floors up with the private areas (bedrooms) sandwiched in between? So, if someone is making dinner, where are family members and guests hanging out? Is there also a family room or additional living space on the ground floor near the kitchen?

@kempek01. thanks for your input and your critical thoughts. I was hoping that through posting this peoples questions would help me and yours did.

@marilyncb thanks for your input. there is a good sized family area near the kitchen yes. this will probably mean the upstairs living room will be hardly used. I imagine maybe it could function as a living area for when my daughter has freinds over or to have a sofa bed in it to make it function as a possible guest room if needed

The biggest selling in point in most houses is location location location!

From your comments, you like the first one and not the second one. Are you going to keep looking or decide between these two?

I always think about neighbors since that is something I cannot change/control, so I have never wanted to share walls, driveways etc with other people - is that a factor for the townhouse?

In general I would choose square feet over lux finishes bc I know down the road I could more easily update materials then add space

indeed as @apple_pie_order noticed. I like house 1 more because I feel that while it would take longer to finish and cost more we hopefully wouldnt worry about moving again. husband likes the finished house more cause its ready to move and has less hidden and future costs

I only see the unfinished but to me this all depends on your life and what is importanytin your home . I would never have a home with a kitchen with no natural ight if that helps . I aslo think the finishes need to be what you would like . I would do the unfinished one .

im sorry if i wasnt clear but the second one comes finished but without thr furniture. ( the kitchen and closets etc though would remain) also there is no mortgage we will be paying cash for either house.

Why would it take 2 years to finish the first house?

the time estimate to finish it especially that some of the finishing budget would come from our monthly income

How close to the highway is the first house? I would lean towards that one if it were me. Three levels would be hard to deal with, especially with a toddler. I think homes on properties tend to do better resale wise, if location is the same. I like that you can redo it in time to your own tastes. It is a large house with potential for expansion. You dont share a wall with a neighbor. The only drawback for me is the proximity to the highway. If it’s a block or two, no biggie. But a house away from the highway might be to close.

If it were my choice it would be neither. I would keep looking.

The twin house I assume shares a wall with a neighbor and as such I'm sure you are going to have to deal with each other over exterior issues such as potential roof leaks etc. With just two parties involved and not an HOA like you'd have in a townhouse community this seems like it could turn into a nightmare unless you have the right neighbor which you could have to start with and then they could sell and you end up with someone who is not. Not being able to move in for a couple of years would be a negative as well. It would be one thing to be able to move in and do things while living there, but if you can't live in it for two years then you will be paying extra money to also live somewhere else.

The townhouse doesn't seem too bad as I wouldn't be so worried about the 3rd floor and it might be nice to have to let the older one have a getaway space or it could be used for movie nights etc. guests etc. but if the major features are not to your liking then you won't be happy with this in the long run as major things are costly to change and very disruptive. There has to be other townhouses that would be more to your liking available if you are willing to consider a townhouse. Also make sure that the townhouse community financials make sense and are going to be within your budget in case they have to do a special assessment. It also seems like the square footage on this one is eaten up a lot by the 3rd floor so the actual sq ft that you would be using is less.

Maybe consider looking at free standing houses, but a little smaller and that may need just some cosmetic updates. Square footage wise be willing to consider smaller sizes too in a free standing home. A good layout can make a huge difference in function and square footage may not make up for that. That is a 3000 square foot home that has 5 bedrooms and 4 baths when you only need 3bed 2 batsh could be the equivalent of a 2500 sq ft home. Not all square footage is used the same. Really think through what you need instead of just considering a specific square footage.

No to the unfinished. Why? There is no occupancy permit.

No to the second house because you don't like it.

Get a market appraisal for you present home with a reputable agent and have the agent help you sell and buy.

Location! If you can slightly hear the highway now, you will really hear it in winter.

For those who read this later, the OP has made a decision on the house.

Please see this thread that she started with questions about the house she chose: She Chose This House