Cost of adding the house: price per square foot, where to save, financing options and more

Are you planning to build an addition to your home? Count the costs now to make sure you have the money to invest in the project. According to Fixr, an online marketplace for home improvement, the average cost of a 240-square-foot first-floor addition is $ 55,000. The average ranges from a $ 7,000 laundry room to the $ 200,000 addition of 1,000 square feet on the second floor with a new roof.

Knowledge how to plan a home addition budget helps you see where the money is going, what expenses you might need to fund, and areas where you can save. Variations in the cost of adding a house come from several factors:

  • Addition type and size
  • Your location
  • Permit requirements
  • The cost of labor and materials
  • Any hidden problem

With these variables in mind, we have averages that will help you with your planning.

House addition costs by type

While most home additions cost around $ 200 per square foot, according to Fixr, variables can increase that amount. Plumbing for kitchens and baths is an example of something that drives up costs. The direction – upward or outward – is another. “An addition to the ground floor costs a little more than a second floor due to the excavation work,” explains Steve Besch, architect and founder of Besch Design, Ltd. in Chicago. “And one attic renovation is less than both, ”he adds. So, let’s take a look at a few types of home additions and what the average cost of each of them is nationwide right now.

The dining room– Unless you add top quality fixtures and materials or bulky cabinetry, you can count on your family room at the average price per square foot, which makes a room of 15 feet by 20 feet of about 60 feet $ 000.

Master suite– According to Remodeling’s 2020 Cost / Value Report, the cost of a mid-range master suite is $ 136,739. Of course, the size of the suite and the layouts and materials used contribute to the overall price.

Bathroom– The average mid-range bathroom addition, according to Remodeling magazine, is $ 49,598.

Cooked—According to Fixr, the average addition of a kitchen costs between $ 50,000 and $ 70,000, depending on your location, kitchen design, and the quality of the materials. Custom wood cabinets, for example, cost more than stock cabinets from the home improvement store.

A breakdown of the common costs of adding a house

To get a better idea of ​​where your money is going, here is a breakdown of the most common home addition costs.

Cost of the permit

Building, electrical and plumbing permits add to the cost of adding to the home. The associated costs vary depending on the location and scope of the work. But generally, a building permit is valued based on the dollar value assigned to the job.

For example, in Richmond, Virginia, before construction begins, someone has to get a permit. Normally, it is the general contractor. A building permit covers construction, but the work also requires separate business permits for things like electrical, plumbing, or gas work. The appropriate subcontractor will file for these.

The fee schedule for all residential permits is $ 63 for the first value of $ 2,000 plus $ 6.07 per mile or fraction thereof. So if someone plans to add $ 30,000, the fee for each permit will be $ 232.96, plus a 2% state surcharge.

In addition, Richmond charges a fee for plan reviews and permit applications that are withdrawn or rejected. This means that if the plans do not meet their approval or the owner changes their mind, they will still have to pay a fee.

According to home-based services company HomeAdvisor, the average cost for a building permit is about $ 1,222, ranging from $ 390 to $ 2,072 for most projects.

Architect and design costs

Including an architect or design professional in your project saves you money in the long run. Whether hired separately or within the same organization, the design professional works with an owner to help them best solve their problem.

According to the Thumbtack Online Professional Services website, architects charge anywhere from $ 50 to $ 150 an hour nationwide, with an average cost of around $ 3,000 per project. Of course, this cost would vary depending on the scope of the work. According to Fixr, the average design fee is 10-17% of the project value. This would make the design cost of an addition of $ 30,000 to around $ 3,000.

As an architect, Besch tries to capture the homeowner’s vision by asking questions to determine what works and what doesn’t work well in the home. He spends time evaluating the whole house, not just a room, to research the best design options.

Once the architect or designer has made a firm commitment to staying within the project budget and design, he draws a set of plans for the contractor to follow. According to Fixr, the average cost of a set of plans for adding a home is $ 1,200.

Contractor costs

Typically, residential contractors bill by project, not by the hour. According to HomeAdvisor, they add a percentage to the cost of materials, supplies, labor, etc.

Cost of materials

The cost of building materials fluctuates with the economy. And currently, due to the covid-19 pandemic, wood prices have increased by more than 180% in the past year, according to the National Association of Home Builders.

The materials also come in a wide range of quality and costs which contribute to the overall budget. For example, natural stone costs more than man-made materials. Custom manufacturing costs more than stock items. Copper and brass plumbing fixtures cost more than chrome plastic. When planning your budget, it helps to shop around a bit to get an idea of ​​the cost of the materials you want. Then you have the knowledge to discuss with your contractor where you would be happy to cut corners in order to save.

Potential hidden costs

Contrary to what you may have heard, contractors want to get your home improvement projects done on budget or on less. This produces satisfied customers and satisfied customers refer them to their friends. But sometimes things arise that you and the entrepreneur may not have prepared for. For this reason, many entrepreneurs suggest supplementing the budget by 10 to 25 percent.

Let’s say you live in an older house. Your contractor may encounter old renovation mistakes made by a previous owner. If they discover a code violation done as part of an older DIY project, they will need to first bring the violation up to standard before continuing. The extra work adds cost to your project.

Also, especially in kitchen and bathroom renovations, the contractor may discover damage from unknown water leaks. They must remove rotten wood, mildew and mildew before new construction can begin. It would also increase your cost.

Ways to save

If you are handy with a hand tool, ask the contractor if there is any work you can do to save on the cost of labor. “Ask if the general contractor will allow you to do the painting,” suggests Besch.

Choose less expensive materials. Making a list of non-negotiable items while you create a budget helps you make your choices. For example, hard flooring is a must, hardwood is not.

Reduce the space. “Less square footage,” says Besch, “means lower overall cost. Just cutting a foot from the perimeter of a room could save a few thousand dollars. “

Financing options

Once you have counted all the costs and finalized a budget for adding your home, you need to decide how you are going to pay for the project. Here are a few options to consider.

Cash—If you don’t have $ 40,000 lying around, consider dipping into an investment account or liquidating other assets.

Mortgage loan—This loan takes your home as collateral against the loan repayment.

Mortgage refinancing—Refinancing your current mortgage and borrowing more than you need could provide the funds for your addition.

Home equity line of credit (HELOC)—Similar to a home equity loan, you will borrow against your home for this loan. But, it does create a line of credit that you can borrow from when you need it, not just for a project.

Entrepreneur loan—If you lack equity in your home, ask your contractor if they partner with local lenders to provide loans for their work.

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