Is Building an Addition or Expansion Worth It?


So, you have an idea of how you would like to put an addition or expansion on your house, but undertaking a whole new construction project within your own home seems a bit daunting. Sure, having a new bathroom or expanded kitchen would be nice, but are additions and expansions actually worth the time, effort and cost of construction?

Consider what types of value you want a new construction to add to your home. Additions and expansions can add value to your home both in what they bring to your life while you are living there and how they profit you when it is finally time to sell. Adding a new bathroom or garage is essentially guaranteed to increase resale value. Expanding your living space is also a surefire way to increase resale value, as 44% of real estate agents cite a need for more space as the most common reason people move.

Personal value

The most important part of any addition or expansion to your home is of course how it improves your quality of life. It is your home after all, so it is important that you have plenty of enjoyable and usable space. Additions and expansions can make a house more efficient, comfortable and aesthetically pleasing. They come in all shapes and sizes; you may want to embark on a major project and add a whole new level to your home, or perhaps you just want to add a few extra square feet to your living room. No matter the size of the undertaking, any addition or expansion can completely transform a house. 

When dreaming up an addition or expansion, consider what part of your home could use improvement and in what ways your family will benefit from these improvements. A bigger kitchen may lead to a future filled with more home-cooked meals and dinner parties, while a new sunroom may lead to peaceful days lounging with your family. The sky’s the limit. You also want to think about what sort of construction you are willing to put up with in your home and for what amount of time.

Resale value

Constructing an addition or expansion is certainly worth it for the resale value if you take a few factors into consideration. Be mindful of how much you are spending on additions not just to avoid spending an unnecessary amount of money now, but also to ensure that you actually get something out of your investment when the time comes to sell. If you spend a ton of money on over-expanding or inefficient additions that don’t add much value to your home, you will wind up losing money in the long run. 

You may be working with a very flexible budget without any intent to sell your home in the future. If that is the case, these factors may not play as much of a role in how you decide to move forward with your addition or expansion, but it will not hurt to keep them in mind. You want to build an addition or expansion that will help shape the home of your dreams, but you also want to be sensible; it could save you some serious headaches in the future.

Examples of additions and expansions that add value

When it comes to expanding your home, there are many possibilities to choose from. Any expansion that opens up your floor plan is likely to increase resale value. In metro areas of Colorado, you are actually more likely to increase the resale value of your home by expanding the living room than by adding an additional bedroom.

Bathrooms are a great example of an addition that is likely to add resale value to your home. The more bathrooms a home has, the more attractive it is to buyers. A growing family looking for a new house needs as much space as they can get. Multiple bathrooms provide family members with much needed space for privacy and separation of personal items. On average, an additional bathroom will increase a home’s resale value by 5.7%. Considering all the work with plumbing that needs to be done, adding a bathroom to your home can be a little complicated. However, when done correctly it can add a tremendous amount of both personal and resale value.

A garage will also make your house more attractive to buyers. Whether you are adding a garage to a house that previously did not have one, or simply expanding the square-footage of a pre-existing garage, a good garage goes a long way. From adding storage space to housing a workshop, garages come with a wide variety of benefits. It is crucial to consider how a garage will work with your driveway and whether you want your garage to be attached to the house or freestanding. While detached garages are more expensive to build, they can add more value to your home than an attached garage. You can expect to make back around 65% of the cost of your detached garage on resale. This means that if you spend $55,000 on a detached garage, you will make $32,750 on it when you sell. If you are adding a garage to a home that previously did not have one, it is smart to stay consistent with the general style of your neighborhood. An addition that sticks out like a sore thumb next to the surrounding homes will not do you any favors when you are trying to sell.

Is it worth it for you to build an addition or expansion? Additions and expansions are wonderful ways to add both personal and resale value to your home. They can make the years you spend living in your home more enjoyable and bring in money when the time comes to sell. If both of these components are properly taken into account, you can maximize the benefits of your construction project and make it well worth every penny.

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