A trend in house additions rises when the market becomes white hot and home equity loans become affordable. A home remodel such as a house addition is typically one of the priciest improvements a homeowner can make, but there are a ton of advantages to taking on a potential 6 figure project. This is unlike a simple flooring replacement or paint job; it can not be reversed. This is why it is so important to carefully weigh the pros and cons and to pick the right contractor for the job.
The Pros
Personalization
Many home additions arise from a need to make an old home new again. This is a very thrilling and rewarding process because you are able to start from scratch and completely tailor your new addition however you like.
More Space
There are many small ways you can add more space into your home: Storage solutions, more cabinetry, minimizing your furniture; but these options only provide you with so much space. Sometimes you need not only storage space, but livable space as well. These are the most common types of home additions:
Second Story: This is the best way to maximize your square footage and to provide more livable space for a growing family.
Garage: Many older homes do not have an attached garage, or even a garage in general. Adding on a garage provides many benefits such as extra storage space, a place to put your washer/dryer if it’s in a tight spot in the home, and, of course, a place to protect your vehicle(s) from outside forces.
Master Suite: Also seen in older homes is the lack of master living space. Many master bedrooms do not even offer an attached bathroom. This type of addition offers a 63% return on investment, according to Home Advisor.
High Cost-Value Ratio
Nearly all home addition costs may be recovered at the time of sale. Of course, this is dependent on what the Real Estate market looks like when the homeowner is ready to sell. Unfortunately, there is no way to predict this.
However, it is usually cheaper to build an addition than to buy a new home that will be equal to the square footage you are planning on adding, plus what you already have. It is also important to remember that there will be closing costs and other factors involved in selling and buying a new home.
If your only issue with considering putting your home up for sale is an issue of space, think about your options and budget for adding on because it may save you in the long run.
The Cons
No Guarantee
If you are banking on a higher resale price for your home after adding on to it, you may want to be careful. While there is still great potential for higher cost-value ratios, there is no guarantee you will recover the full cost if you decide to sell when the Real Estate market is cold.
Property Space
Unless the addition you plan on making is a second story addition, you will most likely be using up yard space. This is space you will not be able to recover in the future, so depending on how much you value your yard space, this may not be the option for you.
Emotional Turmoil
Having a construction crew in your home constantly may be a huge stressor on you and your family. The noise, the mess, and the invasion of privacy is certainly not ideal. Not to mention any financial stresses that may arise from the addition. It is important to make sure you are not only financially ready for this huge project, but emotionally ready as well.