Building a Home
Addition
by Mark Donovan
Besides providing your home with more
living space, a home addition can be a terrific investment. However, before
embarking on such a project the homeowner should first consider several
important items. These items include: home market values in the
neighborhood, financing, size and scale of project, architecture, timetable
for completion, personal disruption/inconvenience threshold and the sweat
equity commitment level.
Size of Addition and Market Value
Prior to actually breaking ground on a
home addition, it is best to first determine what you are looking for in terms
of additional living space. For example: How many square feet? What types of
rooms? Once this is understood, it is then important to find out the
market value of homes in the local area with similar size and features to the
new and improved home. With this information the homeowner can then calculate
the difference between their current home market value and the new and improved
home market value. This difference should represent the maximum budget for the
new addition if a positive investment is desired. For example, a homeowner would
not want to spend $50,000 on a new home addition that provides only $25,000 in
increased market value to the improved home.
Financing
The next important question involves how
to fund the home addition. Unless the project is being funded via cash/savings
then financing will be required. If current mortgage rates are higher than the
existing mortgage, then a home equity loan will probably make the most sense. If
current mortgage rates are lower than the existing mortgage, then refinancing
the entire home, including the cost of the home addition project, may make the
most sense.
Architectural Considerations
Once the financial items have been
addressed it is then time to focus on the size and scale of the project, as well
as the architectural and aesthetics of the new addition. The addition
should be of size and scale such that it aesthetically melds into the original
house. It should not be too small or too big. Frequently, homeowners get carried
away and add large amounts of new living space without sufficient thought on the
outside appearance. From a market value, there is more to a home than just
pure living space. A home needs to maintain its exterior aesthetics as
well. It is important to consider such items as siding, doors, windows,
rooflines, and elevations. All should meld into the existing home exterior
seamlessly and aesthetically.
If an architect is not planned for the
project, then the homeowner should at least make some sketches of the home
exterior with the new addition. The building inspector will probably require
them anyways during the permit process. Also, there are many Home Design
software packages on the market today that can help create such drawings.
Schedule and Sweat Equity Commitment
The next two items that should be
considered include the timetable for completing the project and the homeowner
sweaty equity commitment level. Many homeowners assume they can do a lot more
than they are either skilled to do or have the time to do. From personal
experience, I would suggest contracting out the site/ground work, rough framing,
roofing, siding, heating/cooling, and the drywall. All of these tasks
require skill, time and brawn. If local laws permit, electric and plumbing
may be tackled by the homeowner. However, both require skill and can be life
threatening if not performed properly. Other tasks that a homeowner could
tackle include installing interior doors, finish trim, painting, cabinet
installation, tiling and hardwood flooring. Prior to a homeowner signing up to
any specific task however, they should first honestly assess their skill and
available time, and compare them to their project schedule. If they don't match,
hire the contractor.
Threshold of Inconvenience and Disruption
Finally, a homeowner should consider their
threshold for inconvenience and disruption. A home addition, particularly
if it involves the kitchen, is very disruptive to today's busy lifestyles. It is
also a dusty, dirty and noisy endeavor. In addition, dealing with subcontractors
can be challenging at times. For a typical addition anticipate several months of
effort and inconvenience.
If after assessing all these issues you
are still willing to move forward with the project, contact your subcontractors,
pull your permits and get ready for an exciting time. For most homeowners
tackling a home addition is a positive experience that provides both new living
space and a great investment.
Over the past 20+ years Mr. Donovan has
been involved with building homes and additions to homes. His projects have
included: building a vacation home, building additions and garages on to
existing homes, and finishing unfinished homes. Mr. Donovan's formal education
and profession have been as an Electrical Engineer and Marketing Manager. Email
Mr. Donovan at me_donovan@comcast.net
or visit either his website
http://www.homeadditionplus.com or blog site
http://www.homeaddition.blogspot.com.