Should we make the investment in our house?

I live in a ranch style home built back in the 70's. I have a very
lovely view of  Pike's peak and really don't want to move  to get
what I want.
My kitchen is too small.  I would like to knock out the back wall
and add an addition. The addition would be the kitchen and the
existing kitchen would become the dining room. I would also like
to have a laundry room off the kitchen and a small
bathroom/shower.  
Plus, I'm also wanting to have an upstairs added to the addition
which would  be a master-bedroom with full bath and a walk in
closet.  
Everyone tells me that I should just sell and find another house,
but I really don't want to move. I like it right where I am.  I just
need more space which I could have if I put on an addition.  It
would be a big addition mind you, but I am not actually adding
and upstairs, I'm moving out and up.  

Please let me know what you think.  I have no idea how much
this would cost me.

S. M.
Sounds like you have an ideal spot & I would not want to move
either. I have always advocated adding to your house rather
than move when you are very satisfied with your location.
Your idea sounds terrific to me. What you are contemplating is
going to cost a whole bunch of money but if you read my
"Confessions" book you know that I strongly believe you are
making a very good investment for the future. I have never
seen anyone lose a dime on added living space to their house.
The cost may seem high now but you will see in a few years
what a wise decision you made. When the naysayers tell you
"that's too much money to put into your house" tell them they
do not know what they are talking about. It is almost impossible
to put "too much money" into your home. I can tell you this from
personal experience & from the experience of all my customers
through the years. When you are finished you will be living with
more comfort & the value of your house will increase
dramatically. It will continue to increase in value in the years
ahead.
It is going to take some considerable planning on your part.
You have several design options. Go to work.