The real estate sector is back in business, and MSN reports that property values are increasing at long-term rates once again. Now is the perfect time to upgrade your home with a brand new addition and increase its square footage.
What Does an Addition Require?
Once you flesh out the details with an architect or designer, you’ll want to secure a permit for the new construction. Permit rules vary by city, but your general contractor will help you file the necessary paperwork.
Please note that construction prices vary by company, so the cost of your addition may be higher or lower than the national average. Using a sample 150 square foot addition in Austin, a basic room without plumbing will run about $100 a square foot or a total of $15,000, but you might have to pay closer to $20,000 depending on the windows, doors, and flooring material you choose.
A bathroom addition requires rough plumbing, which increases the price by $5,000, and the bathtub, shower, vanity, and fixtures will run another $10,000. At minimum, a new 150 square foot bathroom will cost $35,000, but you could end up paying $50,000 or more if you choose high-end fixtures.
More than Money
Before we start talking about your addition’s monetary worth, keep in mind that you’re going to be using and enjoying your new addition, which is something you can’t measure in dollars. If you’re not worried about recovering every last penny, a new addition is always worth it.
The good news is that you’ll immediately recover 60% to 90% of the cost of the addition. Basic rooms like bedrooms and living rooms tend to be the most financially lucrative additions, but it all boils down to building comps.
Realtors will look at your property and give it a value largely based on your neighborhood. New windows, cabinets, and floors can all increase your home’s value up to a certain extent, but comps determine your home’s price range.
You’ll always make more on new additions if property values are high in your neighborhood. Additionally, your home will likely increase in value by 3% to 4% every year. If you build a new bathroom for $40,000, it will immediately increase the value of your house by $25,000, and it will break even in about 12 years.
Are you ready to start the home renovation process? Give ABC Home & Commercial Services a call today at 512-837-9500. We also provide pest control, landscaping, and general handyman services to Austin.