If you're into alchemy, there's a tower that can be constructed to house all your equipment in the North Wing (you can also add storage or a trophy room there instead). Once that is constructed there are three slots available, and in each a new extension can be added. This has a living space and bedrooms, and is far grander than the small cottage. The first way to extend a property is to add a large hall. There are plenty of different ways of extending the building, and depending on how you've developed your character, there are features ready to suit all play styles.
Should you decide to keep building, this tiny abode will become the reception room to the rest of the house. Small, yet fit for purpose, it can remain as just that, should that be desired (although if that's all your interested in, Hearthfire probably isn't for you). The first house that can be built is a little cottage. Plans are made on the drafting table, materials are crafted on the carpenter's workbench, and in the midst of all the sawing, a house starts to take shape behind you on your new plot of land. Each new plot is furnished with a drafting table, a carpenter's bench, a chest and some materials to get you started.
