Would you sell your house and build?

So the housing market is booming here, as it is in so many places. There’s a real shortage of decent homes for sale. I live in the country where homes are cheaper than in the city, but about 1.5 hours outside the city so not too far, and lots of people are looking to move to the country to get away from the city since the pandemic hit.

Anyway our friend just sold his 6-year-old home which is a small one-bedroom, one-bathroom loft over a large garage for $415,000. Our home is in the same town, is over 2000 sq feet, 5 bedrooms, 1.5 bathrooms, 2 living areas/family rooms, open concept with large custom kitchen, quartz countertops. We have 1 acre of property and a large 2-car garage, veggie garden, big backyard. The river is across the street so good community for someone who likes boating and privacy.

We paid $227,500 back in 2016...our house was built in 2013 by the way.

We figure even if we sold our house for $400,000 we’d make a decent profit of about $200,000 then we could take out a small $100,000 mortgage to pay for a build. Our friends and family all own construction companies, foundation companies and plumbing businesses so we’ll definitely be able to get some deals and do a lot of the work ourselves to save money.

If you were in our shoes, is this something you’d consider or would you stay put until your kids are grown and just buy/build a smaller house once you retire? It’s a big decision to make so I’m just trying to get some opinions from people who don’t know us and may have a biased opinion.