7 facts to consider when adding space and value

Perhaps your family is growing. Maybe you want a specialized place for hobbies, entertainment an office. It’s also likely that you just want to add more square footage to increase your home’s value. Whatever the reason, you have decided to add an addition to your home. If so, you probably have many questions.

Television today is filled with home improvement shows where homeowners wrestle with the question of whether to move to a larger home or transform the one they already have. Others highlight all-too-eager designers and renovators intent on flipping homes to sell for a profit. Even You Tube is in on the act, with videos that make the process of home additions look easy enough for do-it-yourselfers. All that aside, there are many factors to consider if you are thinking about adding an addition to your home.

What you need to know about adding on to your home

1. The job is a major undertaking

Adding an addition to your home can save you the considerable time and expense it takes to move. However, it’s not a quick or cheap alternative. This could be the most expensive project you will even embark upon as a homeowner. It’s vital that you take the time to have it done right without rushing. In addition to just adding space, you must integrate it with the rest of the home. Also, it can be noisy and messy. You might need to have a plan for how you will move around your home while construction is going on and how daily tasks will be handled. For example, if you are adding on to your kitchen, you must figure out how you will prepare your meals.

2. Decide whether you will build up, out or under

You should have a reasonable idea for what you want. It might be wise to consult a professional contractor or architect to help you develop the best plan of action. The most common addition is adding on to the back of the home. You may lose some yard space but gain in square footage on your home, ultimately making it more valuable. Adding onto the back also gives you some flexibility with materials. For instance, if the rest of your home is brick, you can use wood for the addition since it won’t be seen from the front. Those without the space to build out may choose to build up or under. This may be especially necessary in tight or urban areas. It’s also the ideal solution if you don’t want to give up yard space.

3. You must develop a realistic budget

In most areas, you can expect to pay approximately $80 to $200 per square foot of added space. For a completed project, the national average ranges from $20,000 to $60,000. High end additions with all the bells and whistles can cost up to $100,000 or more. There are also numerous other costs to consider, such as materials, electrical wiring, whether the space will be heated and if you will need an architect. Your project might also require site preparation work like tearing down walls or structural engineers to determine if the area is strong enough to support your plan. Make sure you have good communication with your contractor to ensure you understand the scope of the project and what the final cost will be. How you will finance your addition is also key. Will you refinance, save your money or do it some other way?

4. It can significantly increase the value of your home

Research shows that you can see a huge return on investment with the right kind of home additions. You can recoup more than 50 percent of your investment by adding a bathroom. It’s about 65 percent if you add a master suite to your home.

5. Beware of any local rules and restrictions

In some areas, adding an addition that is too high or too close to public lands is prohibited. You may also not be able to build too close to the front, side or rear property lines. It’s also possible that permits are needed for any type of construction or changes to your property. Some communities have controls on changing the look of the exterior of your home or limitations for how many detached structures you are allowed to have. The worse situation would be building an addition to your home and then being told it must be torn down because you violated a rule or building code.

6. Look for ways to save money

Some homeowners try to make a project less expensive by skimping on materials or going with the lowest bidder regardless of experience or reputation. Cutting corners with these methods can put your entire project at risk. Instead, you can look for other ways to make your home addition more affordable. For instance, a detached structure can cost less than $20,000 and still give you the flexible extra space you need. Also, by adding an addition on top of your home, you can save money because you won’t need to pay for a new concrete foundation or excavation services.

7. Hire only a professional contracting company

We’ve all seen the horror stories from people who used unproven or out-of-town builders while trying to save money. Then, they are left holding the bag when the job is done improperly or the contractor takes their money and takes off. Don’t let this scenario happen to you.

A home addition is a huge investment. This is not something you should trust to amateurs or companies that lack expertise in the industry. A top quality, reputable contractor who specializes in home improvement projects can offer you warranties and guarantees that other companies just can’t.

An established, successful company will stand behind their work. They don’t stay in business very long otherwise. Look for contracting companies that have a long standing presence in your community and a solid list of references you can contact. Having the proper licenses and insurance is crucial as well. You should also get everything in writing, such as their change-order policy and how unforeseen circumstances will be handled. In addition, you need to know how they select the subcontractors your project might require, like painters or electricians.