When it comes to creating a budget for a home addition, many homeowners consider the overall price they want to spend, the cost of the materials and fixtures they want to use and the cost to hire a home remodeling contractor. They often forget about the costs associated with the size of the addition, utility bill and property tax increases and the cost to draw the construction plans and finalize the details.
Size of the Addition
According to U.S. News, the cost per square foot to add onto your home can range between $200 and $600 per square foot. This means that you can expect to spend between $40,000 and $120,000 for a 200 square foot addition. Of course, these prices don’t take into consideration the type of room. A kitchen or bathroom addition that requires adding extra square footage onto your home will cost more than a bedroom or family room addition. This is because kitchens and bathrooms require new water pipes and drain lines as well as new electrical outlets.
Utility Bill, Insurance and Property Tax Increases
Increasing your home’s size results in increases in utility bills, insurance and property taxes. This is because your furnace and air conditioner will have to heat and cool additional space. It may also be a good idea to have your furnace and air conditioner inspected to make sure they can handle the load of heating and cooling additional square footage. If they are not designed to heat and cool the additional square footage, you may want to consider replacing them.
Before you begin adding onto your home, it is a good idea to contact your insurance agent and add the addition to your policy. This will result in an increase in your monthly premiums, but if the addition is damaged via weather, fire or another unforeseen event, you may be responsible for repairing the addition out of your own pocket if you fail to inform your insurance company.
An increase in total square footage will increase the total value of your home and your property taxes. Home additions require permits for construction, electrical work and plumbing. Property tax assessors periodically review those permits when assessing the yearly property taxes for your home. If you are building an exceptionally large or luxurious addition, you may want to call your local assessor to get an estimate of your new yearly property taxes.
To maintain your monthly budget after your home addition project is finished, it is important to take these expenses into consideration and adjust accordingly, or you could find yourself short on cash at the end of each month.
Along with determining the size, fixtures and amenities in your new home addition, you will need detailed construction plans. This typically involves hiring the services of an architect. While this is an additional expense you need to consider, it can also save you money in the long term. Architects are skilled at designing additions that meet your needs and your budget while blending seamlessly into your existing home.
In addition to creating the detailed construction plans, an architect can also explain the design and build process to you while pointing out ways you can save money. They are also skilled at designing plans with different budgets in mind. For instance, you may love the idea of having a fireplace and a built-in entertainment center in your new family room. After looking at the plans and the estimated costs, you may decide that you can afford only one of those amenities, or you may have to cut costs elsewhere in your plan in order to afford both a fireplace and a built-in entertainment center.