A home addition can be a milestone event in the life of your home and your family. Perhaps the addition means that a new baby is on the way or that your home business has achieved the next level of success. But adding an addition is trickier than you might think. You can’t just tack on square footage and call it a day. To build that room you’ve been dreaming of you need to have a thorough plan. The insights below will help get you off on the right start.
Assess Your Needs
Homeowners plan additions to their homes for various reasons. Whatever the situation, understanding your needs is important. Take some time to think about what you want to gain from an addition. Here are some questions you should ask yourself when assessing your needs:
- What size does this room need to be?
- How well will this addition integrate into your home?
- What features do you envision this room having? (closest, bathroom, windows)
- Will this addition add financial value?
- What is the time frame?
Plan Ahead
There can never be too much planning when adding square footage to your home. As with anything in life, things can go wrong, projects can get delayed, and weather might become an issue. It’s wise to plan for any issue that may arise. Examples of a few considerations include:
- Think about the location of the addition – how will you access other parts of the home during construction?
- Be mindful not to plan any big events too soon into the project. It would be a bummer to have made plans to use your new addition for a party, and two weeks prior you find out that it is still a month out!
- Contemplate both what this addition will be now as well as what it could be in the future. Is it important to add a closet or a bathroom, maybe even windows?
Consider Your Budget
Setting and keeping a budget is essential when planning and building a home addition. It might be helpful to investigate average home addition costs and have a talk with your financial advisor. A popular financing method is to take out a second mortgage. If that is not attainable, a home improvement loan is another option. When budgeting, is also a good idea to anticipate unexpected costs. A great way to prepare for this is to leave some wiggle room in your budget (5-10%).
Also beware of hidden costs. Unforeseen expenses can turn an exciting project into a sour one. Be aware cautious of the following:
- Preexisting Home Damage – Unfortunately, some homes will reveal unseen damage once demolition begins. For instance, contractors may discover a rotten foundation that must be fixed before a new addition can be constructed. Before compiling estimates and budgeting the cost of a home addition, it’s worthwhile to inspect your home thoroughly beforehand. If you’re a new homeowner, research the home’s history to determine if unseen damage may exist. If any repairs are necessary, it will add cost, but keep in mind that fixing them along with another project can save you money in the long run as well.
- Construction & Housing Permits – Depending on your town, you will probably need to get permits for all construction work. Adding a bathroom, for instance, might include the expected plumbing permits, but also an electrical permit. Portland permit fees usually range within a few hundred dollars but can quickly add up for larger projects. As certified Portland contractors, we understand which permits are required for any project and can help you sort out any requirements.
- Raised Insurance Premiums & Property Taxes – Along with the initial investment of planning and constructing your new home addition, you can also expect some continuous costs for the future. Because of your home’s added value and size, your homeowner’s insurance premium will most likely increase between 20% – 50%. You can also expect your property taxes to increase as part of your new home valuation for the next tax year. Exact costs are difficult to estimate, as they are dependent on the scope of your project and can be affected by your insurance plans and tax deductions. Along with gathering construction estimates, you’ll also want to consult your insurance representative and tax consultant for more specific numbers.
Thinking of adding an addition to your home? Our experienced team would love to hear from you and help guide you through the process.