I’d like an answer to this also!
Great question, Aaron!
First, great to hear that you are considering an addition! Choosing to add value to your home, through an addition, is a significant decision that requires commitment and planning, so I commend you for your first step.
Second, before proceeding with a home addition project, first, consider two items: the value of homes in your neighborhood and the length of time you are considering staying in your home. If the value of the addition plus the current value of your home will give you a good ROI if you were to sell the home, then an addition makes sense, economically. For instance, if the current value of your home is $200,000 and the addition will cost $100,000, then you should be able to sell your home for at least $275,000. This will give you an ROI of .75 cents to the $1.00 invested, which is good. But, if the addition will provide little to no value, then the project does not make sense. Also, if you are financing the project through a bank, then the loan officer will review this as well. However…
You must also consider the length of time that you are expecting to spend in your home after the completion of the addition. If you expect to stay in your home for the next 10+ years, then the addition makes sense. If less, then consider purchasing a new home.
Next, additions have two (2) types of costs: fixed and variable. A GC can calculate the cost to build an addition. This includes the foundation, framing, roofing, siding, windows, etc. The material used to build the structure is based on industry standards, the requirements of the Township and the architectural drawings; so, the cost to build the structure will remain the same. However, the contents of the project control the costs of the overall project. For instance, flooring, bathroom items, kitchen cabinets, etc. A kitchen remodel can cost $20,000 or $100,000 - it depends on the costs of the materials being selected. Therefore, if you want to add square footage to your home and you want to control the costs of the project, then you need to focus on the costs of the contents - this will have the biggest impact on the final number.
Also, you can elect to do some of the work yourself like painting. Unless you are trained or experience, leave all water items and electrical items to the professionals, as these items can have major effects on the home if not properly installed, such as a toilet, faucet, ceiling fan or bath fan. But, painting is laborious, which means that the majority of the costs associated with painting a home is actual labor costs. You could easily cut down $3,000-$5,000 from the project if you decide to paint yourself. But, remember that if you do the work yourself, the contractor will not warranty the work.
In addition, you may consider purchasing the contents on your own. Most times at Big Box stores, if you provide a large list of items needed for the project to an associate at the Pro Desk, that associate has tools to reduce the price by 5-10%. Also, look into financing options at Big Box stores. Typically, if you purchase using a Big Box credit card, then you will receive a discount or benefit. But, also look for times when those stores have sales; i.e. Menards 11% rebate. Home Depot also matches this rebate.
Overall, start with $150 per square foot. If the addition is a 20’ x 20’ area, then the area is 400 square feet, so a good starting estimate is $60,000. But, hopefully this answers your question. If you have anymore questions, please contact DDT Home Transformations.