Pros and cons
- High cost to value ratio
- Studies have shown that many people who have a home addition done are able to recover the full cost at the time of sale.
- Cheaper than buying a new home
- It is usually cheaper in the long run to add on to the house you already have than to purchase a new house that is already the size you wish to have
- You made it
- Sometimes it just feels good to say that you made this.
- Best option for more space in your home
- Things like sun rooms are terrible investments, and renovating a basement can be a much bigger job than expected
- Return on investment is not guaranteed
- You can still lose money. An addition to your house only has potential to be a strong investment depending on when you sell and how the market is doing.
- It's a tough thine to go through
- It may seem exciting at first, but after a few weeks of constantly hearing power tools, being woken up early, and having half of your house exposed to nature, it can get tiring real quick.
- Increased peripheral costs
- Your heating and/or cooling bill will increase, you have more windows to wash, more gutters to clean, more taxes, and more carpet to vacuum!
- Loss of yard space
- Most of the time, you will lose yard space due to the addition.
Cost will obviously vary from addition to addition because everyone's home addition is different. Here is a basic guide to give you an idea of what to expect:
- Determine square footage of the room you will be adding to your home. Home additions tend to run $80-$130 per square foot before the addition of fixtures, wiring, plumbing, and more.
- Determine the total cost of all fixtures and appliances. Include plumbing work such as sinks and bath tubs. Tally the total cost of these items up.
- Decide on the rest of the construction needs such as windows, carpet, paint, lumber, etc. Figure out how much you will need of each and tally the total cost of these items up.
- Speak with a contractor. Contractors will give you an estimate and can be a big help during this step in pointing out things you may have overlooked.
- Don't forget about miscellaneous charges such as a dumpster to clean up or removal or old materials. Remember that things like insurance and utilities will increase.
Renovations that bring the greatest percentage return on investment:
- Entry door replacement: 96.6 percent
- Deck addition (wood): 87.4 percent
- Attic bedroom: 84.3 percent
- Garage door replacement: 83.7 percent
- Minor kitchen remodel: 82.7 percent
Renovations that yield the smallest return:
- Home office remodel: 48.9 percent
- Sunroom addition: 51.7 percent
- Bathroom addition: 60.1 percent
- Backup power generation: 67.5 percent
- Master suite addition: 67.5 percent