What to Consider When Adding to Your Home

When dissatisfaction with your current home strikes, it can be exciting to launch into a plan for a new addition. A new living room, bedroom, or more can add value to your home while improving your quality of life.

On the other hand, even a modest addition can turn into a major construction project, with architects and contractors to manage, construction workers traipsing through your home, hammers pounding, and sawdust everywhere. And although new additions can be a very good investment, the cost-per-square-foot is typically more than building a new home, and much more than buying a larger existing home.

 

Define your needs

To determine if an addition makes sense for your situation, start by defining exactly what it is you want and need. By focusing on core needs, you won’t get carried away with a wish list that can push the project out of reach financially.

If it’s a matter of needing more space, be specific. For example, instead of just jotting down “more kitchen space,” figure out just how much more space is going to make the difference, e.g., “150 square feet of floor space and six additional feet of counter space.”

If the addition will be for aging parents, consult with their doctors or an age-in-place expert to define exactly what they’ll require for living conditions, both now and over the next five to ten years.

 

Types of additions

Bump-out addition

“Bumping out” one or more walls to make a first-floor room slightly larger is something most homeowners think about at one time or another. However, when you consider the work required, and the limited amount of space created, it often figures to be one of your most expensive approaches.

 

First-floor addition

Adding a whole new room (or rooms) to the first floor of your home is one of the most common ways to add a family room, apartment or sunroom. But this approach can also take away yard space.

 

Dormer addition

For homes with steep rooflines, adding an upper floor dormer may be all that’s needed to transform an awkward space with limited headroom. The cost is affordable and, when done well, a dormer can also improve the curb appeal of your house.

 

Second-story addition

For homes without an upper floor, adding a second story can double the size of the house without reducing surrounding yard space.

 

Garage addition

Building above the garage is ideal for a space that requires more privacy, such as a rentable apartment, a teen’s bedroom, guest bedroom, guest quarters, or a family bonus room.

 

Permits required

You’ll need a building permit to construct an addition, which will require professional blueprints. Your local building department will not only want to make sure that the addition adheres to the latest building codes, but also ensure it isn’t too tall for the neighborhood or positioned too close to the property line. Some building departments will also want to ask your neighbors for their input before giving you the go-ahead.

 

Requirements for a legal apartment

While the idea of having a renter that provides an additional stream of revenue may be enticing, the realities of building and renting a legal add-on apartment can be sobering. Among the things you’ll need to consider:

Special permitting

Some communities have regulations against “mother-in-law” units so they have zone-approval requirements.

 

Separate utilities

In many cities, you can’t charge a tenant for heat, electricity, and water unless utilities are separated from the rest of the house (and separately controlled by the tenant).

 

ADU Requirements

When building an “accessory dwelling unit” (the formal name for a second dwelling located on a property where a primary residence already exists), building codes often contain special requirements regarding emergency exits, windows, ceiling height, off-street parking spaces, the location of main entrances, the number of bedrooms, and more.

 

In addition, renters have special rights while landlords have added responsibilities. You’ll need to learn those rights and responsibilities and be prepared to adhere to them.

 

Average costs

The cost to construct an addition depends on a wide variety of factors, such as the quality of materials used, the laborers doing the work, the type of addition and its size, the age of your house and its current condition. For ballpark purposes, however, you can figure on spending about $200 per square foot if your home is in a more expensive real estate area or about $100 per foot in a lower-priced market.

You might be wondering how much of that money your efforts might return if you were to sell the home a couple of years later? The answer to that question depends on a number of variables, but the average “recoup” rate for a family room addition is typically more than 80 percent.

 

The bottom line

While you should certainly research the existing-home marketplace before hiring an architect to map out the plans, building an addition onto your current home can be a great way to expand your living quarters, customize your home, and remain in the same neighborhood.

Posted on April 1, 2020 at 6:30 pm
Metro Denver Office | Category: Home Owner | Tagged , , , , , , ,

Is it time to downsize?

Choosing less space often has to do with a desire to live a life that’s simpler. Whether you’re retiring, want an eco-friendly, low-maintenance lifestyle or your children have moved away, downsizing might be the best option for you. Here are the advantages and disadvantages to consider before making the move and questions to begin asking yourself now.

 

Advantages

  • Increased cash flow.
    • Spend less on your mortgage payment and you are likely to have more money leftover for other needs or desires.
  • More time.
    • Cut down on time spent on household chores such as cleaning and vacuuming which will leave you with more hours in the day to do something more enjoyable.
  • Lower utility bills.
    • Costs less to heat and air condition a small home.
    • Less square footage decreases the amount of energy expended.
    • Reducing energy is better for the environment and it helps keep your home green.
  • Reduced consumption.
    • You would likely buy less since you won’t necessarily have the room for it.
  • Minimized stress.
    • Homeowners who have successfully downsized often feel happier because they are no longer overwhelmed by the demands of a larger home.
    • Less responsibility, less housework to do, increased cash flow and flexibility equals reduced stress.

 

Disadvantages

  • Fewer belongings.
    • Moving into a smaller space would mean you would need to give away or donate furniture, books, kitchen supplies, etc.
  • No room for guests.
    • Hosting holiday dinners might be out of the question for a smaller home.
  • Space restrictions.
    • Less space means you could feel cramped.
  • Lifestyle changes.
    • For long-term homeowners, downsizing means changing a lifestyle.

 

What to consider before downsizing

These questions are important to ask yourself because for some people, downsizing may not be the best option for them.

  1. Does size matter to me?
    1. Think about how much your identity is wrapped in your house.
    2. Is it important for you to have a guest room or a second bathroom?
  2. Will I miss some important things about a more spacious home?
    1. Will moving into a smaller home feel like a step backward?
  3. How will other life events affect my living in a smaller home?
    1. Consider possible scenarios you may not expect such as adult children moving back home or if you plan to add a child.

 

The Cost to You

  1. How much will it cost to replace the furniture?
    1. When you move into a smaller home this means you might have to downsize your furniture to make room.
  2. How much will it cost to get rid of the stuff I don’t need or won’t fit?
    1. It’s important to have a plan for how you’re going to sell or give away the things you don’t need.
    2. Consider things like family heirlooms. What are you going to do with all your antiques or treasures that your smaller home may not be able to accommodate?
  3. How much will I get when I sell my current home, and will it help cover the cost of buying my new home?

 

If you know downsizing is the right option for you, you’re probably asking yourself, “Should I sell first and then buy or buy first and then sell?”. When you’re ready to discuss your options, talk to an experienced Real Estate Agent. 

Posted on February 19, 2020 at 5:53 pm
Metro Denver Office | Category: Home Owner | Tagged , , , , , , , ,