Would you prefer to move to a larger home but don’t have the budget right now? Making home additions is a good way to improve the space and functionality of a home, but it requires enormous planning. If you make your home too unique, you may have trouble recouping costs or selling it at closing. Even if your current home is a forever home, you should make additions, keeping the resale value in mind. So, which home additions should you make to ensure you get pleasure while living in it and a solid return on investment if you sell it? Check out these suggestions.
What to Consider Before Making a Home Addition
Whether you’re changing the footprint of your entire home or just upgrading a room within it, here are some things to consider before getting started.
Permissions
Before you start making changes to your home, it is a good idea to check with your local government building department to see if you’ll need permits, particularly for rewiring or changing pipes. Also, deed restrictions may limit your home to a specific height or some other limitation on what you can do to it. There could also be restrictions on your home if it is a historical property. Not checking on these things before making structural changes may cause delays or prevent you from selling your home in the future.
Costs
Home upgrades and additions may cost a considerable amount of money. A typical cost range for home renovation could be between $40,000 and $300,000. Even low-cost upgrades could run a few thousand dollars. Budget overruns due to problems that occur throughout the remodel could add additional costs. Before you get started with home makeovers, it is ideal to consider overall estimated costs and set aside money for contingencies.
Time Frame and Living Conditions
How long will an upgrade take? Some remodeling projects may only take a few days, while others may take several months. Knowing this is critical, especially if you have contractors in your home. Changes to a small powder room may not interfere much with your daily routine. However, adding a second story addition may require you to move somewhere else during the project. Knowing how long a project will last and how much noise and debris will affect your family’s comfort is a good idea.
Return on Investment
Another critical thing to consider is the return on investment for your remodeling project. Not all upgrades will allow you to recoup money if you sell your home. For those who do, you likely won’t recover all you invested in the remodeling project. If you’re actively working with a real estate agent while making changes to your home, they can show you comparable homes in the area to give you an idea of how much you can recover from making certain upgrades. However, if you’re not actively selling your home, it’s wise to use a home remodeling cost estimator and research which home renovation provides the best return on investment.
Overall Aesthetics
While most of your additions may be within the home, you may want to change your home’s appearance, such as a detached garage or dormers. If you make such changes, ensure that the new additions blend well with the architecture of the existing house.
Know the Limits of Your Property
It may be tempting to start your building project, assuming all the land on your property is your domain. However, parts of your land may encroach on your neighbor’s property. If you plan to build additions outside your home, ensure you know where your property lines end and your neighbors’ lines begin.
Kitchen Addition
When you’re ready to make home upgrades, a kitchen addition is one of the best considerations. Restructuring this space can provide an enormous amount of functionality and enjoyment, especially if you have a galley kitchen. Creating more space and lighting in this area can make cooking more enjoyable. Adding an area for seating could also improve comfort levels for your family.
A kitchen renovation could run between $23,000 and $135,000. Focusing on improving this area of the home can reap one of the best returns if you’re selling your home since the return on investment could be between 80% and 87%.
Bathroom Addition
Another addition that should be high on your priority list is your bathroom. Excessive water use from showers, flushing toilets, and running water in the sink can cause the bathroom to lose a lot of energy. If any of these items are leaking, there could be additional loss. Other problems in this area could include poor ventilation, bad windows, insufficient lighting, and lack of storage. Making upgrades can improve energy efficiency and general enjoyment in this area.
Bathroom renovations can cost $20,000 to $38,000. A bathroom remodel can increase the value of your home, giving you a return on investment of between 56.7% and 58.9%.
Basement and Attic Finishing
One addition that may provide additional space while adding value to your home is finishing your basement or attic. These areas of the house can add more value for you by serving as recreational space, a movie room, a home office, or even a rental property, particularly if they have proper egress for tenants. You may also use these areas as an in law suite or a space for aging parents.
Unfinished basements and attics don’t add square footage to your property. However, when finished, they may add to your existing square footage if they meet an appraiser’s specification for square footage. This could increase your asking price if you decide to sell your home. Finishing a basement can cost between $12,000 and $30,000 and earn a 70% ROI. Finishing an attic may cost between $8,100 and $26,000 and may recoup 73% of your initial investment.
Living and Family Room Renovation
If you’ve moved furniture around and changed focal points in your living room but are still not getting the results you desire, it may be time for a complete renovation. Living rooms can be an excellent place to relax for you, your family, and your pets. However, an awkward or outdated layout, bad lighting, bad flooring, and an overall dysfunctional floor plan can make this room an unbearable place in the house.
To solve the functionality problems with your living or family room, upgrading this area is a good idea. A living room renovation can run from $10,000 to $15,000. It may recoup about 78% return.
Garage Conversion
If you’re tired of parking your car in an unfinished garage or one that isn’t functional, you can add some pizazz by renovating it. For many, a garage may be more than a place to park cars. Many use garage space for woodworking projects and storing hiking or camping gear. It can also be a great place to keep bikes, exercise equipment, and other items. You can get more enjoyment out of your garage by allowing it to serve in one of these capacities, along with parking your car. Or you may even decide to convert the garage to a comfy rec room or an extra living space.
A garage conversion could cost between $7,000 and $15,000. Your return on investment will be between 65 and 70%. If you decide to make the garage into a living space, it may cost substantially more since you may have to rerun pipes and wiring. You may also have to insulate and install a separate HVAC system, particularly a ductless system, to improve indoor comfort levels.
Keep in mind that you don’t have to completely upgrade the garage to reap the benefits of high ROI. According to Remodeling Magazine, just making upgrades to the garage door could cost about $4,302, but the costs recouped could be 102.7%.
Tips For Reducing Costs of a Renovation Project
If you’re on a limited budget, cutting costs anywhere in the project helps. Here are a few tips to help you save on home additions.
- Keep and reuse existing cabinets, particularly for kitchen and bathroom remodels. Repainting them and adding new hardware may be enough to make them feel like new.
- Check to see if your renovation is eligible for tax credits. This may be especially true if you’re making renovations that improve energy efficiency.
- Consider doing some of the work yourself, particularly demolition and cleaning.
- Use lower-grade materials without compromising the integrity of the project. While using quality materials should be your aim, you don’t have to choose the most expensive brand.
- Check to see if you qualify for government grants or special loans for home repairs and improvements from organizations such as HUD. You may be eligible if you’re a senior citizen or fall into the low-income bracket and need home repairs.
- Don’t over-improve your home. Stick with renovations that make sense for your neighborhood. Overimproving will not increase the value of your home when you sell it. It could work against you since you may not recoup the money you invested or sell your home.
- Compare and contrast costs with at least three top contractors in your area to ensure you’re getting a reasonable price on renovation.
