With home appreciation in recent years, many people wonder if they should add an addition to their existing home. Using a home equity line of credit for an addition to your home can be tempting, but how complicated is it? While it can increase your home’s value substantially, what are some of the common pitfalls and possible concerns you should consider before starting the construction process?
Building Material Costs & Labor Costs
A proper budget detailing the material and labor costs is of utmost importance. This is probably the most difficult part of the addition process. Contractors will have vastly different prices, sometimes varying as much as 50% of the total project budget. However, understanding the materials involved and completing an accurate “take-off” helps reduce costs and control the total project budget. Ask the contractor to assist with this information before signing agreements.
Planning The Addition & Permitting
For starters, you will need to have a survey performed to determine the correct boundaries of your property. This helps with setback requirements that the city may impose. In many cases, the locality that your home is located in has rules and zoning guidelines stipulating exactly how close or how far a structure should be from the property line.
Secondly, an architect is a great point of contact when drawing an addition. This will entail measuring the interior and exterior of the home to calculate current and future window sizes, door sizes, and other important construction details. Having a floor plan design with the existing and proposed floor plans is an excellent starting point and typically a necessity for obtaining a building permit.
Demo, Construction Timelines, & Inspections
Building an addition to your home does not happen overnight. It’s going to take a few months. No matter how fast the contractor moves, inspections will have to be performed by the city to ensure building codes are followed and construction is correct according to the plans.
Plumbing, mechanical, electrical, framing, and a final inspection will occur throughout the building process. Adding to the timeline will be any weather events that will prolong the beginning stages of construction. Setting the proper completion timelines upfront will help to keep frustration levels low.
Setting Expectations of Value & Not Overbuilding
One of the most valuable additions to any home is having a large primary bedroom/bathroom combo. When trying to sell a 2 bedroom 1 bath home, or any home that does not have a formal master en suite, the marketability drops substantially. After having sold 100’s of homes, 757 Offers recommends having a minimum of a three-bedroom, two-bathroom home, with a minimum of 1,600 square feet for the largest market appeal. If your home is under these minimums, an addition can add tremendous value. On the other hand, you don’t want to overbuild and be the largest home in the neighborhood. Popular additions such as a sunroom, mother-in-law suite, or detached garage will increase the home’s value.
