Best Way to Budget for a Home Addition
The expenses connected with adding to a home can be separated into labor and material costs.
Sometimes, a homeowner needs more space but doesn’t want to move, and a renovation won’t quite meet their needs. In these cases, the homeowner may consider adding on to their home. However, this is a costly venture, and they must consider the budget before starting this kind of project.
The expenses connected with adding to a home can be separated into labor and material costs. Materials include, but are not limited to, foundations, wood for framing, sheetrock, roofing, cabinetry, countertops, and lighting fixtures. Labor expenses cover workers’ time on the project and will be determined by the number of manhours required.
With a clear understanding of the project’s cost, homeowners can determine the scope of their addition, whether a simple room with components added over time or an entirely new space with all the needed amenities. With regards to home additions, it’s easy for homeowners to determine what they need. The hard part is rationalizing how much they can realistically afford.
Following are several budget tips.
Determine the budget
Ultimately, nothing can happen until a homeowner knows what they are willing and can afford to spend on an addition to their home. They may plan to pay cash or take out a home equity loan or a combination of the two. Once you’ve focused on a project, decide whether you have the cash. If paying cash, the homeowner must have a set amount they can safely spend, with a cushion for any surprise expenses. Homeowners planning to take out a loan must understand how much the bank is willing to lend them.
Find a contractor
When searching for a contractor, it pays to be thorough and interview several before deciding. Talk with friends and family members for recommendations. Request references and verify the contractor’s credibility. Have the contractors come out to talk over the project and offer comprehensive bids. Don’t consider only cost; the homeowner has to be comfortable with the contractor. Hiring someone who makes one feel comfortable may be worth the additional expense.
Determine the size of the new space
Settle on the size of the room to be added to the home. Generally, room additions range from $21,000 to $74,000, depending on the size, scope, and finishes. This cost includes general contractor and architect fees, permits, foundation, framing, roofing, siding, electrician and plumber fees, flooring, and finishes.
This information is helpful, but to understand the cost, homeowners need to speak with several contractors and ask for comprehensive bids. Only then can the homeowners determine their best option.
Price appliances and fixtures
Determine what appliances and fixtures the space needs. Plumbing work and installing a shower and sink increase the expense of a washroom more than a family room, which might have furniture. These factors will help determine the overall cost.
Realizing the budget and having a precise number in mind for a home addition will save homeowners a lot of heartache and stress as the project progresses. It’s not worth adding to the home if it financially strains the family after the project is complete. When consulting with a professional, whether for a kitchen addition or room addition, request precise quotes so there aren’t any surprise costs and fees. Do extensive research before committing to a contractor and signing any agreements.
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