With interest rates remaining high and inventory low, many who were considering selling and then buying, are now considering staying in place. That doesn’t mean their current home is everything they need it to be, however; maybe more space is needed. So, what are the options? This is a question my family has been pondering while the real estate market has been in flux. We’ve contemplated every type of home addition or renovation, mainly looking at the return on investment if/when we decide to sell.
In comes a recent Realtor.com video, “Out of Space-and Out of Your Mind?” Yes!! This video looks at different building options, and the value that is gained for specific rooms. Here’s a summary:
First, the post looks at what the building options are? Option one is to build outward. This would add square footage to your existing space, and can be less expensive than building up. You’ll want to consider your yard and if you can part with the outdoor space you’ll lose when adding on. Generally the cost for building outward is around $60,000-80,000, for a 400 square foot addition.
Second, is the option to build upward. If you don’t have the space to build out, this may be your best option; especially if you have a smaller lot. However, consider that removing the roof, or adding or renovating stairs can quickly add up. If you live in an older New England home, like we do, you also need to think about the age of the home and what added costs may come when deconstructing. The average cost for a 400 square foot addition going up can range from $72,000-100,000.
Next the realtor.com video looks at adding specific rooms; starting with a bathroom. Often this is a big want, particularly in one-bath homes. If you are hoping to add a bathroom, you’ll want to think about plumbing, fixtures, tile, labor, etc. When adding a bathroom it can cost around $20,000-90,000, depending on your selections. The return on investment, however, can be around 53 percent.
Another room many homeowners think about adding is a bedroom. Number of bedrooms matters, especially when listing a home for sale. This was our biggest need when considering our addition. Our now teenage boys are sharing the smallest room in our house… time for their own space. We know adding a true third bedroom to our home will bring value when selling so this is the room we were focused on having. According to realtor.com, while a bedroom addition can cost $50,000, it can bring over 54 percent return.
The final room the video looks at is a sunroom. This can be a great space for gathering, and enjoying the sun. Plus, staged correctly, sunrooms always look great in listing photos. Average cost is between $8,000-80,000; this all depends on the existing structure of the home and selections. A sunroom can bring in a return on investment of 49 percent, according to realtor.com.
Ultimately, we decided to build out. We had the yard space, and the addition will actually afford us more privacy in our backyard. What are we adding on? A master bedroom; although we are holding off on finishing the bathroom until costs come down a bit. In the end, it wasn’t exactly what we had envisioned when starting this process but it will give us the necessities – a space for everyone that is more functional. It will also increase the value of our home when it’s time to move.
If this is a decision you’ve been thinking about because of the current real estate market, you’ll want to watch the video from realtor.com. You’ll also want to talk to contractors and even a local real estate professional to figure out what is best for you, and what will give you the best return.