Avoid 3 Hidden Things That Increase Cost of a Home Addition

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. More so than ever, you’ll want the construction process to go smoothly and to the budget you’ve planned for.

Unfortunately, hidden costs can turn an exciting project into a sour one. While we can’t foresee your future, we thankfully have years of industry experience and tips to help you avoid the unforeseen cost of a home addition. We’ll cover the following 3 expenses:

  • Preexisting Home Damage
  • Construction & Housing Permits
  • Raised Insurance Premiums & Property Taxes


Preexisting Home Damage

Unfortunately, some homes will reveal unseen damage once demolition begins. For instance, contractors may discover 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 relatively new homeowner, make sure to also research all previous home 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 gain 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. Contact us today for a free consultation and to learn more about the cost of a home addition.


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.


While some contractors will keep these extra costs hidden, we believe in full transparency. We want our clients to be comfortable with their budgets and in their beautiful spaces. Read more about what sets Square Deal Remodeling apart and click through our home remodeling portfolio.