February 2, 2023
You want to make some big changes to your home, but you might not be sure if a home addition is worth it. In fact, you might be wondering if a new addition will even add value to your home if you decide to sell it someday.
Home additions are a great way to potentially add value to your home or property. Of course, some home projects might have a higher return on investment than others. However, you also will need to consider the cost of the home addition project.
Today, we’ll be covering how much a home addition can add to the resale value of your home.
No two home addition projects bring the same return on investment; some projects add more value than others.
One of the best value-adding projects is adding a living space. According to Opendoor’s home improvement data, adding a living space can add 5.3% on average to the median home value. Expanding the square footage of your home could be very costly. Instead, if you convert a basement or attic, for example, into a living space, you’ll add more selling potential to your home.
If you’re going to add a living space, converting a space into a bedroom would be the best home addition for a resale value increase. Of course, you can choose to convert a space into something like a den or sunroom for example.
Probably the most common home upgrade people make is the kitchen. These remodels can be small (cosmetic changes, appliance upgrades, etc.) or large (fixture installations, cabinet replacements, etc.). Depending on the scope of the project, a kitchen upgrade may start out at $40k. You can expect a return on investment between 53% and 81%.
Read: The most popular home remodeling projects and their costs
There isn’t a clear cut answer to this question; it varies on a lot of factors. There are pros and cons to both. It ultimately depends on your desired goals with the home and where you’re selling it.
Adding a second story to your home is significantly more expensive than extending the home from the first story. The cost of a second story could reach up to $300,000 for homes that are 1,000 square feet.
This is because in order to add a second floor, you’d have to remove the current roof, build and install the floors and walls, and then replace the roof. Additionally, you have to temporarily find somewhere else to live until the project is complete.
Despite these high costs, the return on investment would be higher with a second story than an extended home addition. Potential buyers are more likely to want to buy a home with multiple stories as opposed to one floor homes.
You will need to do the math to determine whether the potential return on investment will be worth the excessive costs for building a second story.
Building an addition is the more convenient option to expand your home as you don’t necessarily have to secure temporary living arrangements.
The costs of an addition will depend on the amount of space you wish to add. Remodeling an existing room may only cost $5,000 to $20,000, depending on the project. The costs will fluctuate based on the materials needed, the season you choose to do the project, and if you have the right contractor for the job.
Read: What to look for in a home addition contractor
While the costs for a home addition will be cheaper than a second story addition, the return on investment will be lower.
Finishing the basement is a great home improvement project. Many times, an unfinished basement is unused or isn’t used to its fullest potential. HomeAdvisor states that the average cost to finish a basement is, on average, $25 per square foot.
The possibilities of what you can do with the basement are plentiful. You can turn it into:
And these are only some of the possibilities of your basement space.
If you decide to turn the basement into a living space, that will attract potential buyers, especially ones with large families or aging parents. That allows the home to become multi-generational.
Read: How to modify a floor plan for multi-generational living
While it’s key to keep the inside of the home looking nice and spacious, the appearance outside the home matters as well. If the home catches the attention of people who drive by, that’ll make the home even more attractive to potential buyers.
Upgrade the home’s curb appeal by adding appealing outside space. For example, consider adding a deck or patio. It’s a space that lets the homeowner enjoy the outside air and still sit comfortably on their property.
You can enhance the look by adding a small flower path, some bushes, or installing a fire pit. Anything that makes the patio feel cozy will be an eye-catcher to potential buyers.
If you have a home or business that you want to spice up with an attractive addition, reach out to the Heitmeyer team. You’ll receive personalized service that prioritizes your project vision so that it becomes a reality.
Heitmeyer Building & Design is a Construction company with over 100 years of experience in commercial construction and residential construction located in Pickerington, Ohio.
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