Add-On, Remodel, Renovate
Construction Cost applies to any area which is changed or touched. Extending a room doesn’t just add new space. Also changed will be the original room because existing walls, windows, doors, floors, and ceilings in the ‘old’ room must be modified along with the new addition. New areas, which include a roof, must fit that roof against any adjacent, existing roof system. It will cost money to make whatever changes are needed so the old and new can come together. More money will be spent to match eaves, trim, and wall surfaces.
A prime objective should be to end up with changes that don’t look like changes. The finished addition or renovation should fool the eye of any beholder into believing that nothing has changed. A home has more value if it appears timeless and ageless.
However, even more important that getting your add-on dream built is the value after the ‘build’ is finished. Not every change is a good idea. A poorly considered plan only yields a bad build. It may be expensive, but if it isn’t livable, high cost won’t guarantee that someone else will see value in it or desire to live there.
PRESENT vs FUTURE VALUE
Here’s a short list of considerations and actions concerning the value of additions and renovations.
- Will Anyone Else Want the Changes? You may want to sell this house, someday. Consider whether the changes being made, now, will be appealing to a potential buyer in the future.
- Will Value Increase After the Changes? Every project is expensive. But not every idea will gain value over time. An important goal is to build something that will continuously grow in value for many years.
- Pre-Appraisal of existing house. Before spending a dime on construction, find out what the home’s present value is. Hire an appraiser to determine your home’s value in relation to its proximity to similar houses, nearby (comparables).
- Pre-Appraisal of Planned changes. Next, ask the same appraiser to consider your plans for the new addition or renovation, and project the value of the home after those changes will have been made. Base your decision to proceed on whether the changes to be made will generate a significant increase in projected market value.
- Will Insurance Premiums change? Before the project begins, find out whether the increased insurance cost will be affordable. Bad things happen. Can you afford to be ready for them?
- Will maintenance costs change? A bigger house will mean more to care for. More floors, more walls, more openings, more trim, more complex landscaping, and more; all these things will cost more to maintain. It will take more time do it properly and may require hired help. Complexity is costly.
- Will utility costs, like heating and cooling, change? Adding extra rooms may also mean adding extra exterior floors, walls, ceilings, and openings. New spaces may increase the area of the house exposed to weather, which will increase the cost of heating and cooling the entire house. Ask your local power and gas companies for help to determine future monthly bills.
Building a new addition and renovating to improve the livability of any house can be fun and rewarding. It will be more fun to know that the future, as related to the changes, will be affordable. Proceed with excitement but also with caution.
Buy a subscription
just for yourself.
Give a subscription
who might need help
building or remodeling.
who needs to see HBT.