Sometimes we all need a little more space.
Whether you are looking to expand the living room, add a bathroom to one side of the house, or build a complete master suite, a home addition allows you to craft a property to your exact needs.
But as you may have expected, new additions are not cheap. There is a lot involved, and you need to know how much it costs, what goes into the price, and what you can do to finance such an important project.
How Much Does it Cost to Build a Home Addition?
Home Addition: Essential Information for All Homeowners
There are many different sources you can turn to for reliable information on the cost of a home addition. Obviously the price will vary depending on many factors, including the size and range of your addition, as well as the location, but you can use these numbers for a fairly accurate representation of the cost of a home addition.
Note: The numbers cited for this article were referenced on June 11th, 2018. Numbers will vary as the market changes.
Remodeling Calculator: $53,803 for Mid-Range 420-sq. ft. Addition
According to the Remodeling Calculator, a participant in Amazon Services LLC, the price of a 420-sq. ft. remodel will generally range from $36,455 on the low end to $87,504 on the high end. A mid-range remodel of the same size will be roughly $53,803.
ImproveNet: $38,553 for Average Home Addition
This site, which compiles a wide range of home-improvement information and tips, says that additions can be as low as $3,000, but the average cost is roughly $38,553. For an entire floor or guest house, the cost can be as high as $42,000, and high-end home additions can go above $100,000.
HomeAdvisor: $42,346 for the Average Home Addition
As one of the most trusted sources of building and remodeling information, HomeAdvisor says the “typical range” for a home addition is between $20,997 and $65,356. At the extreme low end, a home addition can be completed for $5,900, while the extreme high end is $110,000. However, the national average is $42,346 according to their numbers.
Type and Range Makes a Difference
It’s important to note that the type and range of your home addition will make an extreme difference in the overall cost of your project. Remodeling Magazine, for example, gives information on “midrange” and “upscale” remodeling projects. Their numbers state that a midrange bathroom addition will cost $44,717, while an upscale bathroom addition will cost $83,869, a difference of nearly $40,000. Likewise, their information shows that a midrange master suite addition will cost around $123,000, while an upscale version will run over $256,000, a difference of roughly $133,000! Clearly the scale or range you choose can have a profound difference in the overall price.
What’s Included in the Cost?
On a reasonable home addition, you can generally expect a few factors to be included in the cost. First and foremost is the planning, and while not every project will require detailed blueprints, there will need to be a basic floor plan regardless of project type. Rooms with simple layouts, such as bedrooms and living rooms, will generally need less planning than more complex additions such as bathrooms and kitchens.
After the project is planned, the framing will need to be completed. This will include the walls, flooring, roofing, and everything else that makes the skeleton of the new structure. The framing basically includes the basic construction aspects, including any exterior siding, shingles, floorboards, and soffits.
The addition will also need electrical, and if it’s a kitchen or a bathroom, there will need to be plumbing as well. This aspect of the addition can also include fixtures, such as ceiling lights and faucets.
Finally, the finishing touches will need to be completed. This can include painting, adding decorative fixtures, installing countertops, and mounting cabinetry.
A home addition might seem simple, but when you account for all the various phases, you can see how the price can quickly reach tens of thousands of dollars. For many people, this means loans may be required.
Paying for Your Home Addition
As you can see from the information above, completing a home addition is not cheap, and many people will need financing to help pay for an important home expansion. Fortunately, there are some ways that you can finance the addition without significantly adding to your monthly expenses.
One of the most useful ways to pay for a home addition is financing through a Home Equity Line of Credit, or “HELOC.” With this form of financing, you essentially take out a loan against the equity in your home, which brings in a fairly large amount without the higher interest rates (in most cases) of personal credit.
Another option may be the FHA’s 203(k) loans, which can help you rehabilitate or repair certain properties. Because this is offered by Fannie Mae, the options may be limited, but it could be an option for helping to finance a necessary home addition.
Some counties and cities also offer home-improvement programs that help fund certain aspects of home improvements. These programs can provide funding at relatively low rates, and while they will certainly come with caps, they may be available for low- to moderately-priced home additions. Be sure to contact local officials to see if your area offers any local home-improvement programs.
Of course, there is always that chance that you could save by doing some of the construction yourself. You don’t necessarily need to be a home-improvement expert, but if you can hang sheetrock, lay flooring, or mount cabinetry, you may be able to save a significant amount on the overall cost. Every decision should be based on your experience and comfort level, and you should always leave plumbing and electrical work to the professionals, regardless of your personal confidence and experience.
Loans for Home Additions, Mortgages, Refinancing, and More
If you are looking for financing for a home addition, or simply want information on available mortgage loans, let the knowledgeable team at San Diego Purchase Loans be your guide!
