If your family has outgrown your current house, you might be considering a big change. Or, maybe you want that luxurious master suite, a third bathroom or an additional family room. If you need more living space, you have two options: add on to the house you already have and renovate it to make it work OR move into a bigger house.

How much do you love this house?

Homeowners typically build additions because they love the house and neighbourhood that they live in. Perhaps you don’t want to uproot their kids or maybe you had searched for this dream home for years before initially moving in. Chances are you can find a different house that meets you needs for space, but if you’re not willing to move, an addition might be a good option.

Will you get a return on investment?

Edmonton home additions typically do not recover their full construction costs at resale. Additions that are added to your home’s existing footprint, like putting in a second bathroom in the basement, can have a better return on investment compared to adding on. If you’re going to spend $60,000 to $100,000 to add extra square footage, it might not be worth that much to a future buyer. Your realtor will also help you determine if you are overbuilding for your neighbourhood. If there are no homes in your specific market that have home additions, it might mean yours will not hold its cost value at resale. Buyers will not typically pay $400,000 for a home in a $300,000 neighbourhood. They’d rather spend the money and get the square footage they need in a different, more upscale market. According to this HGTV article, adding another story on your house can have a 65% return on investment. Adding a master suite can recoup 63% of it’s cost and a bathroom about 53% of it’s cost. Building a sunroom addition will only recover about 49% of it’s cost at resale. You won’t get zero dollars for the addition at resale, but you won’t get it all back either. If you’re uncertain, talk to your real estate agent. They have experience buying and selling homes that have been added onto. They can provide current insight on your specific home, it’s market and tell you if the addition will have a good ROI.

How are you going to pay for it?

Your home addition will be pricey. Before you start pouring over home design blogs, determine how much you’ll have to spend and where the funds will come from. Some homeowners choose to refinance their mortgage to pay for an expensive addition. Another option is taking out a low-interest home equity line of credit. This is when you borrow money against the equity in your home. Since you will be building debt, you really want to make sure it’s worth the investment and won’t make paying for regular living expenses a challenge.

Is there room on the property for an addition?

If you want to add onto the footprint of your current home, you’ll need to make sure there’s room for it on the property. A contractor can determine if there is enough space in your yard and next to the property line to meeting zoning bylaws and local building code. They can also let you know if this addition is going to look like it’s part of the original design, or if it might look like an awkward after thought. In some cases, the idea you have for your addition might not be compliant with neighbourhood restrictions, zoning bylaws or building code requirements. Read more things to consider when building a home addition.   Posted by Liv Real Estate on
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