If you have a small home, sometimes a room addition is the best choice for you and your family. You must budget for this home improvement carefully, or you may find yourself running out of money or paying a great deal more than you expected.
Here are some reasons your room addition budget might not work.
You Budgeted Too Small
Sometimes, when you start dreaming about the improvements you could make to your home, your ideas start to outpace your funds very quickly. For example, you might think that you would like to add a wood deck to your home. You do some research and determine that it is a good investment that is not too expensive. Soon, you start to wonder if you might be happier with a screened-in porch. Before you know it, you have escalated to a sunroom with a dramatically different budget. A midrange wood deck addition costs around $10,000, according to Remodeling Magazine’s 2015 Cost vs Value Report. A sunroom seems almost as simple, but really it is not. It costs about $75,000 to add on. While you are not as likely to make such grand plans starting from a very small budget, it serves to show that even small changes in your design can cost a lot more by the end.
You Expect a Bigger Return on Investment
Most people improve their homes primarily for their own enjoyment and use of the home. However, you should always consider what would be the home’s increase in resale value as a result. There are certain improvements, such as a new steel entry door, that might even earn you a profit on your investment. Room additions, on the other hand, will only increase your home’s value by about half or two-thirds what you paid. A midrange master suite addition costs an average of $111,000, and increases the home’s value by a bit less than $70,000. That could be a big disappointment if you are hoping to move in a year or two. This fact doesn’t mean that you should not get a room addition. Instead, you simply need to be realistic and considerate of your needs. When selecting a room addition for your home, research what other homes in the area have that yours does not have. Selecting the right kind of room addition will boost your home’s appeal when you plan to sell.
You’re Not Sure What You Want
As any construction expert will tell you, it is considerably easier to make changes on paper than it is to replace a wall that has just been taken down. As with any extensive remodeling project, you have to know precisely what you want and what you expect to get from your room addition project. Before construction begins, your architect will give you a very specific layout and go through all the details of how your room addition will look. It is vitally important that you follow all aspects and make sure that you are at least content with all of them. If not, ask for alternatives. If you do not like the location of a door or window, it is better to ask at the beginning than to ask to have it placed in a different location when construction has already begun.
Your Contractor Underbid
There are many reasons that you should be wary of a contractor who bids under the other candidates, and incorrect estimation is merely one of them. You want to get your money’s worth and you don’t want to overpay, so it is tempting to go for the bid that seems quite a bit cheaper. However, there is almost always a problem with this. Contractors’ bids are estimations, not generally a guarantee that you will pay that price. If the contractor made an error in estimation, or the prices of materials or labor goes up, you will have to pay more.
Creating a budget for a room addition calls for expert advice. Take that advice, lest you end up paying far beyond your means.