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How Much Does It Cost to Add on a Room: 4 Tips

Would an additional room in your house make all the difference? Sometimes adding an extra room can be an excellent investment, but other times you may find it hard to recoup your investment. Read our guide for an idea on the cost of home additions, and how to decide whether it’s a good idea for your home.
Would an additional room in your house make all the difference? Sometimes adding an extra room can be an excellent investment, but other times you may find it hard to recoup your investment. Read our guide for an idea on the cost of home additions, and how to decide whether it’s a good idea for your home.

 

Building an addition or adding an extra room to your house can improve its value significantly, depending on where the addition is and the type of addition. In the U.S., adding an extra room to your home will cost you anywhere from $20,919 to $67,438, according to HomeVisor.com.

Whether necessitated because you have outgrown your home, or desired for recreational purposes, there are several factors you should consider when deciding to add an addition to your home.

Keep reading for some things to consider before calling your contractor.

Permits

The first thing you should do, before anything else, is finding out whether an addition to your home would be permissible according to your city or county regulations, and how to do it.

Permits are usually the first hurdle to overcome in home renovations as if you do not fill out the required paperwork and receive permission; you could end up in hot water with the county, or even find your home insurance void.

Building permits can range in cost between $363 and $1,730 and are essential when selling your home, as potential buyers will want to ensure that home is correctly permitted for any modifications or additions.

Inspections

Another aspect of the renovation process that needs to be considered happens after the permit is approved, and the work has been completed — this is the inspection.

Having your addition looked over by a building inspector ensures that the work meets the required safety regulations of the building code.

How Do You Plan to Renovate?

The size of the addition and what its purpose will be can significantly impact the cost.

There are several things to consider, such as, if you would like to add another family room, do you have space on your property to build out? According to HomeVisor, adding an addition to your home in the U.S. will cost up to $200 per square foot and will take several weeks or even months.

Which Professionals Will You Hire?

If you are changing the elevation of your home significantly, use the services of an architect who can ensure that the design is aesthetically pleasing and in keeping with the rest of the home. Architects usually charge a percentage of the overall project cost, and you can expect to pay around 10%; however this will vary depending on your location and work required.

You will also need to hire a general contractor who can complete the work and ensure the addition runs smoothly within your expected timeframe and doesn’t go over budget.

Now you know of some costs you should expect when adding a new addition to your home, here are four tips to help you decide whether it's the right move to make.

What Should the First Step Be?

Your first step should be to decide where you would like to add your new home addition, and what purpose it will have, and whether you can afford to make the renovation. You should also start your search for an experienced contractor who will build your dreams into reality, and most importantly, within your budget.

Will the Addition Add Value to Your Home?

Whether you plan to sell your home in the immediate future or not, it's still important to consider what impact it will have on the value of your home, as not all home additions add significant value.

For example, additions such as an extra bathroom, or master suite add more value to your home than a sunroom would.

What Restrictions Should I Consider?

It is imperative you seek confirmation about zoning restrictions on your property. There are several things to consider, such as whether your property has any easement requirements, or limitations on the amount of property which can be built on the land.

How Do I Decide On a Contractor?

Finding a reliable and experienced contractor could be a make or break in your new home addition process. You should ensure that the contractor you choose is licensed and insured, and having a reputable reputation.

It is also essential to ask for estimates from more than one contractor, as this will help guarantee you get the most competitive price.

If you’re thinking about adding a new addition to your home, or purchasing a property with an addition, consider reaching out to a Clever Partner Agent who can provide you with advice and can also save you money during the real estate transaction.

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Andrew Schmeerbauch

Andrew Schmeerbauch is the Director of Marketing at Clever Real Estate, the free online service that connects you top agents to save on commission. His focus is educating home buyers and sellers on navigating the complex world of real estate with confidence and ease. Andrew has worked on projects for the United Nations and USC and has a particular passion for investing and finance. Andrew's writing has been featured in Mashvisor, L&T, Ideal REI, and Rentometer.

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