How to Add Square Footage And Not Break the Bank
In today's fast-paced world, "home" has grown to be more than just four walls and a roof. It's a sanctuary from the world, an investment, and a place to bring together our loved ones. More recently, there has been a trend of crafting homes that can hold more than one generation. Homeowners are making the choice to expand rather than buy a new home and move.
One thing to keep in mind is that a home renovation can be a complex project that will need careful planning to stay in line with the budget you set. In this guide, we'll break down the expenses that go into expanding an existing room and general room addition costs.
The Cost Of Home Additions Per Square Foot
Adding more space to your home will be priced by the square foot. You will usually find costs fall in the range of $200 to $600 per square foot. The average cost for Michigan homes is $260 per square foot. The final cost will depend on a lot of things, such as the grade of materials used, labor, and if you are starting from scratch or adding onto a current room.
Keep in mind that additions such as bathrooms and bedrooms tend to be on the high end of this price range. This is because they require more plumbing and, in the case of bedrooms, they will need electrical work. The cost will also rise if you opt for more lavish features or higher energy efficiency.
Where does that cost go to
There are many ways you can break down the costs of a home addition. How you spend the budget can change from one project to another. Things like the size, location, and features will determine where the budget goes the most. With that said, generally, the cost of a home addition is spread across the following buckets.
Contractor Labor Costs
Labor includes the fees paid to all skilled trades needed for your home. These costs will tend to take up a large piece of the budget, as high as 40-50% of the total cost.
Materials
The cost of the building materials you use will also take up a large portion of the budget. The grade you choose for things such as lumber, concrete, insulation, doors, and finishes like tiles and paint will make a big impact on how much the new space costs. Materials generally comprise a large portion of the budget and land in the 30-40% range.
Design and Engineering
If you hire an architect or designer, their fees will be a part of the whole budget. When you hire these kinds of specialists, you make sure that the project has a plan that meets your needs and your budget. The cost to design and engineer a new room or floor can range from 5-10% of the budget.
Permits and Fees
Getting the needed permits, inspections, and other city related requirements will be an additional cost that is only sometimes a part of the estimate. This can lead to an additional cost of around 1-5% of the budget.
Contingency Fund
When we talk of things not in the estimate, it is time to touch on the need to plan for the unforeseen. It is best to set aside a contingency fund in the range of 10-15% of the estimate. This fund will work to cover surprise costs, changes to the project, or issues that can come up during construction.
Building Up vs. Building Out
You have two options when you choose to add space to your home: build up or build out. When you build up, it tends to be less complex and often more friendly to your budget. This is especially true for homes with existing garages.
Building out tends to be more costly due to the need for a new foundation. These projects may involve structural changes to make sure the roofline and walls stay strong during the extension.
Talk with your contractor to choose which option best suits your home and budget.
Bump Out Costs
Expanding your kitchen is a common home improvement project. When you add a few feet to one side of your kitchen, it can help keep costs down compared to building an entirely new room. A three foot bump out can give you 240 square feet of space without requiring additional support structures. This added space could be used for an island or a breakfast nook, with no extra costs for HVAC.
How to Save Money on an Addition To Your Home
There is no doubt that home additions can be a large financial commitment. However, there are a few strategies to make sure that you don't break the bank while you add more space and worth to your home. One thing to note is that most renovation projects will exceed their estimated costs. These excess costs tend to fall within a range of 5% to 20% above the initial price. However, there are some tips you can follow to get the most out of your original estimate.
Choose Standard Finishes
When you go for finishes that are more common, such as vinyl planks for the floors, you can bring down your material costs by a large margin. While high-end finishes may be tempting, when you look for lower cost alternatives, it will be easier to keep your budget in check.
Get More Than One Bid
It is always a good idea to get bids from more than one general contractor. This will help you compare costs but also allow you to assess the scope of work and the contractors' experience. By getting more than one bid, you can negotiate for a more fair price and choose a contractor who brings the best value for your home.
Plan and Design
Taking the time to plan an efficient design can save you money at all stages of your project. Optimize your space to minimize the need for more square footage while getting the most use out of the current space. A well-planned design can help to reduce material costs.
Reuse What's There
When it is an option, try to reuse the materials that are currently in your home. Items you can salvage during the demo, such as doors, sinks, or old furniture, can add character while helping to save money. Feel free to explore the options open to you to give new life to old textiles.
Home Addition Costs By Type
When you choose to add space to your home, you have more options than just adding a room. Depending on your budget and needs, you can expand your house with all kinds of functional spaces that can give you both comfort and a rise in property value.
Bathroom Addition
Adding a new bathroom will tend to cost between $8,000 and $47,000, with an average cost of $10,000 to $12,000. According to the National Association of Realtors, a new bathroom can give a 50% ROI when you sell your home. Another thing to keep in mind is that homes with the same number of bathrooms and bedrooms tend to sell faster.
Laundry Room Addition
A report by the National Association for Home Builders has found that a laundry room is one of the most wanted features for buyers. Don't just hide the washer and dryer in a cabinet or closet. Build a space that is designed to make this chore easier. The cost of a laundry room addition will tend to run from $8,000 to $12,000.
Family Room Addition
Growing your space with a larger or new family room can help to make a crowded space feel like an open home once again. A 400-square-foot family room will be in the range of $200 to $500 per square foot. This price will include the new foundation and roof, walls with siding, and insulation. This will also cover skilled trades that are needed, like any electrical or tile work.
Finished Basement
If you have an unfinished basement, you can transform it into a living space as a cost saving way to add square footage to your home. The cost of a basic basement can range from $2,800 to $34,500, depending on its size and the type of features you wish to add.
Detached Garage/Pole Barn
The cost of detached additions will change depending on the design, features, and materials used. A small shed, with no power or heat, may cost around $2,500, while a fully-equipped detached garage can cost about $25,000.
Sunroom Addition
The cost of adding a sunroom will range from $8,800 to $120,000. Large sunrooms and those built for sites with high winds or heavy snow tend to be more costly. Custom designed sunrooms can cost between $300 and $500 per square foot.
In-Law Suite Addition
The average cost of an in-law suite is around $90,000, with most projects landing somewhere in the range of $78,000 to $135,000. These suites will have one bedroom, two bathrooms, a kitchenette, a laundry room, a living space, and storage. These types of suites can raise the value of your home and can act as a rental option when you have no family staying with you.
Front Porch Addition
Adding a front porch to your home can boost the curb appeal and provide a space to enjoy the outdoors. The cost can range from $2900 for a slab porch to $18,000 or $24,000 for an enclosed porch. Most porch upgrades have an ROI in the range of 30% to 60%.
Cost to Add a Second Story
If you are going to add a second story to your home, you likely plan to add more than just one room. Each room type and style will add to the complexity and cost of the project. The cost of a second stroy addition have a wide range as much higher costs are possible if there is a need to make complex changes to the current structure or higher end materials are desired.
What Home Addition Will Increase Property Value?
It's important to remember that adding value to your property is often a long-term endeavor that may not yield immediate results. The value of a home usually appreciates over time rather than immediately after a renovation. If you're planning to sell your home in the near future, consider renovations that are likely to appeal to potential buyers, such as additional rooms, bathrooms, or an expanded kitchen.
DIY Home Addition Cost vs. Hiring a Contractor
While do-it-yourself (DIY) projects can be cost-effective, it's important to note that undertaking a home addition without the necessary skills and expertise in areas like demolition, zoning, and building codes can result in unsafe or structurally unsound additions. Local contractors experienced in home additions can ensure that your project meets local building codes and regulations. They can also manage other professionals, such as plumbers and electricians, as needed.
How Much Should I Budget for a Room Addition?
Room additions typically cost between $60,000 and $350,000, with the final cost depending on factors like building materials and the type of room you're adding. Keep in mind that contractor labor costs, as well as location-specific variables, can influence the overall expense. When budgeting for a room addition, consider the unique requirements of your project and location.
FAQs
Do I need building permits, and do they add to the cost?
Whether you need a building permit for your home addition depends on your local building codes and regulations. Typically, larger projects like home additions do require permits. The cost of obtaining a permit will vary by location and the scope of your project. It's essential to check with your local government or building department to understand the specific requirements and associated fees.
Should I hire an architect or designer, and how does that affect the budget?
Hiring an architect or designer can improve the quality and functionality of your home addition, but it does add to the project cost. Architectural and design fees can vary widely, and they are usually based on the complexity of your project and the professional's experience. However, their expertise can help you avoid costly design errors and ensure your addition meets your needs.
Is financing available for home additions, and what are the interest rates?
Financing options for home additions may include personal loans, home equity loans, or home equity lines of credit (HELOCs). The interest rates for these loans can vary depending on your credit score, the lender, and the current market conditions. It's a good idea to shop around for the best financing option and compare interest rates and terms.
Are there tax incentives or rebates for certain types of home additions, such as energy-efficient upgrades?
Some governments offer tax incentives, rebates, or grants for energy-efficient home improvements. These can help offset the costs of energy-efficient upgrades like solar panels, insulation, or energy-efficient windows. The availability and details of these incentives can vary by location, so it's essential to check with your local and national government websites for information.
How long does a typical home addition project take, and does the timeline affect costs?
The duration of a home addition project can vary significantly depending on the size and complexity of the project. A small addition might take a few months, while a more extensive project could take six months or longer. The timeline can affect costs, as a longer project may incur additional labor and material expenses.
Can I make changes to the project after it has started, and how does that impact the budget?
Making changes to a project after it has started can lead to increased costs and delays. It's best to finalize your design and plans before construction begins, as changes can require alterations to materials, labor, and permits, all of which can add to the overall cost.
What kind of insurance coverage do I need during a home addition project, and is that an additional cost?
You should notify your homeowner's insurance provider about your home addition project. Depending on the project's scope, you may need additional coverage. Insurance costs can vary, so it's important to discuss your needs with your insurance agent.
What kind of unexpected costs do homeowners commonly encounter during a home addition?
Common unexpected costs can include discovering hidden structural issues, dealing with weather-related delays, or changes due to unexpected permitting requirements. Having a contingency fund (usually 10-15% of the project budget) can help cover these unforeseen expenses.