Adding a home addition to your house is one easy way to increase your home’s value. A house addition can be anything from an extra bedroom to a bigger living area. Whether you need some extra room or are looking to upgrade your floor plan, this construction brings another added benefit: an increase in home value.
That’s right! The home addition cost may seem steep at first glance, but spending the money on an addition often leads to a bigger profit when you sell. The amount by which your home’s value can increase depends on a few factors, such as the type of addition.
There are several types of home additions that can lead to an increase in the resale value of your home. However, it is important to note that adding a house addition to your home will not create an increase that is equal to the cost of the addition.
The house addition cost fluctuates across the country and largely depends on the size and type of addition you plan to make. The price of renovating your house also varies depending on where you live.
Home addition contractors typically provide free cost estimates for homeowners interested in adding an addition. The estimate usually includes the cost of labor, parts and materials. Depending on the contractor or company you choose, you may also receive an estimate of your home’s value after the potential addition is complete, which can help you decide whether the cost of construction is worth it.
Are you considering a home addition? You may be interested to learn all the types of additions available and how much approximate value they can add to your home. Here are the most popular types of additions you can create.
Adding a Bathroom
Bathroom addition contractors will tell you that bathrooms are among the most added rooms to homes across the country. Adding a bathroom, even if it only consists of a toilet and a sink, can add thousands of dollars to your home’s value.
This type of home addition is beneficial for nearly any type of homeowner. Whether you have a growing family or just need some extra utilities, adding a bathroom is an essential feature to get some extra space.
The average return on investment (ROI) for bathroom additions sits at approximately 53%. In other words, your home’s value will increase by $.53 for every dollar spent during renovations.
Adding a Bedroom
If you’re looking to add a house addition purely for the resale increase, a bedroom is your best bed. Bedroom additions have the highest return on investment (ROI) among all types of additions. It isn’t hard to see why; adding a bedroom not only increases living space but allows the home to accommodate more people.
The home addition cost associated with adding a bedroom is fairly steep, but the average resale increase may be worth it. Most bedroom additions can add anywhere between $14,000 and $50,000 to a home’s value.
Of course, a bedroom home addition will cost differently depending on how you choose to create the bedroom. Converting an existing space into a bedroom is far less expensive than adding new construction.
Adding a Porch or Patio
Ordering a general contractor home addition for a new porch or patio helps increase the curb appeal of your home. For many potential buyers, the home’s exterior can make or break their decision to purchase a home. In fact, some experts believe that adding curb appeal can increase a home’s value by as much as 7%.
There are plenty of options to consider when adding a porch or patio. For example, a colonial front porch addition is ideal for homeowners looking to capitalize off the traditional design of a home. Others may prefer adding a screened-in porch, open patio or combination patio/deck.
In addition to increasing value, porches and patios extend the living and entertainment space of a home. If you plan to live in your home for many more years before you sell, adding a porch or patio can help you make the most of your home.
Adding a Garage
Sometimes, a home addition isn’t about increasing the living space of your home. Adding a garage can offer your vehicles some protection from harsh weather. There are many things to love about a covered parking space, perhaps none as big as shelter from the snow during winter months.
Many home extension contractors report a ROI on garages as high as 81%. However, the total amount of value that it adds depends on the type of garage you choose. Adding a detached garage (separate from the home) does not usually provide a ROI as high as an attached garage.
Furthermore, your home’s value may increase even more if you combine a garage with another type of addition. Many homeowners decide to add a garage with a bonus room attached to the second level. In doing so, you could create an extra bedroom, bathroom or family room.
Finishing Your Basement
Adding a house addition with basement renovations is a great way to double the size of your entertaining area. The possibilities are endless – from adding bedrooms and bathrooms to a movie room or a home gym.
The additional living space you create by finishing your basement can be used in a plethora of ways. Some homeowners looking to generate monthly income often rent out their finished basements on platforms such as Airbnb or VRBO.
Other uses for finished basements include the following:
- Home office
- Family room
- Entertainment room
- Sports cave
- Library
- Craft room
Keep in mind, however, that finishing your basement could cost a pretty penny. If your house is on the older side, home addition contractors may need to perform some safety inspections prior to construction to ensure the area is up to par. However, the average ROI for a basement addition is roughly 75% to 85%. Not only will you enjoy the extra space, but you could see a hefty resale increase when it is time to sell!
