Home Costs: Price Per Square Feet, Where To Save, Financing Options, and More

Are you planning to expand your home? Now, count the cost to make sure you have the money to invest in the project. According to Fixr, an online home remodeling marketplace, the average cost of a 240-square-foot first-floor home is $ 55,000. The average ranges from a $ 7,000 washroom to an elaborate second-floor extension with a new $ 200,000 roof.

Knowing how to budget for a home expansion can help you see where the money is going, what expenses you might need to fund, and what areas you can save on. The cost fluctuations in the house addition depend on several factors:

  • Type and size of the addition
  • Your location
  • Approval requirements
  • The cost of labor and materials
  • All the hidden problems

With these variables in mind, we have some averages to help you plan.

Additional house costs by type

While most home accessories cost around $ 200 per square foot, according to Fixr, variables can increase that amount. Installing kitchens and bathrooms is an example of something that drives up costs. The direction – either up or out – is different. “An extension on the ground floor costs a little more than a second floor due to the excavation work,” says Steve Besch, architect and founder of Besch Design, Ltd. in Chicago. “And an attic renovation is less than both,” he adds. So let’s look at some types of house additions and what the average cost for each country is right now.

living room– Unless you add quality fixtures and materials or bulky closets, you can be confident that your family room is at the average cost per square foot and a 15 by 20 foot room is around $ 60,000.

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 as well as the furnishings and materials used contribute to the total price.

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

kitchen– According to Fixr, the average kitchen additive costs anywhere from $ 50,000 to $ 70,000, depending on location, kitchen design, and material quality. Customized wooden cabinets, for example, cost more than storage cabinets from the hardware store.

A breakdown of the common house surcharges

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

Cost of approval

Building, electrical, and plumbing permits add to the cost of a home addition. The associated fees vary based on location and scope of work. Typically, however, a building permit is calculated based on the dollar value assigned to the contract.

For example, in Richmond, Virginia, someone needs to get a permit before construction begins. Usually it is the general contractor. A building permit covers the construction, but separate business permits for electrical, plumbing or gas work are also required for the order. The relevant subcontractor will submit this.

The fee structure for all residential permits is $ 63 for the first $ 2000 plus $ 6.07 per thousand or a fraction thereof. So if someone is planning a $ 30,000 surcharge, the fee for each permit is $ 232.96 plus a 2 percent state surcharge.

In addition, Richmond charges fees for plan reviews and approval requests that are withdrawn or rejected. This means that if the plans do not meet with approval or the homeowner changes his mind, he still has to pay a fee.

According to home services company HomeAdvisor, the average cost of a building permit is around $ 1,222, and ranges from $ 390 to $ 2,072 for most projects.

Architect and design costs

Bringing an architect or design professional into your project will save you money in the long run. Whether they are hired separately or as part of the same organization, the design professional works with a homeowner to help them find the best possible solution to their problem.

According to the online professional services website Thumbtack, architects nationwide charge between $ 50 and $ 150 an hour, with an average cost of around $ 3,000 per project. Of course, these costs would vary depending on the scope of the work. According to Fixr, the average design fee is 10 to 17 percent of the project value. That would add $ 3,000 to the $ 30,000 home design fee.

As an architect, Besch tries to capture the homeowner’s vision by asking questions to determine what works and what doesn’t in the house. He spends a lot of time evaluating the entire house, not just the one room, looking for the best design options.

Once the architect or designer has firmly decided on the budget and design of the project, he creates a series of construction plans for the contractor to follow. According to Fixr, the average cost of a series of construction plans for a home addition is $ 1,200.

Contractor costs

Usually private contractors calculate the project and not the hour. According to HomeAdvisor, they add a percentage to the cost of materials, supplies, labor, etc. Depending on the region of the country you live in, this could be 10 to 20 percent of your total home addition costs.

material costs

The cost of building materials fluctuates with the economy. And currently, wood prices have soared over 180 percent due to the Covid-19 pandemic last year, according to the National Association of Home Builders.

Materials are also available in a variety of quality and cost ranges that add to the overall budget. For example, natural stone costs more than artificial materials. Custom-made products cost more than stock items. Fittings made of copper and brass cost more than chrome-plated plastic. When planning your budget, it helps to do a little digging to get a feel for the cost of the materials you want. Then you will have the knowledge to discuss with your contractor where you would like to cut corners in order to save.

Possible hidden costs

Contrary to what you may have heard, contractors want to bring in their remodeling projects on budget or less. This leads to happy customers and happy customers who pass them on to their friends. However, sometimes problems arise that you and the contractor may not be prepared for. For this reason, many contractors suggest topping up the budget by 10 to 25 percent.

Suppose you live in an older house. Your contractor may encounter old renovation mistakes made by a previous owner. If they uncover a code violation that occurred as part of a previous DIY project, they must first update the violation before proceeding. The extra work increases the cost of your project.

In the case of renovations in the kitchen and bathroom, the contractor can also uncover damage caused by unknown water leaks. You will need to remove rotten wood, mold, and mildew before construction can begin. This would also increase your costs.

Ways to save

Once you are comfortable with a hand tool, ask the contractor if you can do work to save labor costs. “Ask if the general contractor will allow you to paint the picture,” suggests Besch.

Choose cheaper materials. Making a list of non-negotiable items when creating a budget will help you make your choices. For example, hard flooring is a must, hardwood is not.

Make the space smaller. “Fewer square meters,” says Besch, “mean lower overall costs. Cutting off just a foot around the perimeter of a room can save you a few thousand dollars. “

Financing options

After you’ve counted all of the costs and budgeted for your home addition, it’s time to decide how you’re going to pay for the project. Here are a few options to consider.

cash register– If you don’t have $ 40,000, you should consider getting into an investment account or liquidating other assets.

Home equity loan– This loan is used as collateral for the repayment of the loan.

Mortgage refinancing– By refinancing your existing mortgage and taking out loans that you do not need, you can provide the funds for your top-up.

Home Equity Credit Line (HELOC)– Similar to a home loan, you are borrowing credit against your home for this loan. However, a line of credit is created that you can borrow from if necessary, not just for a project.

Contractor loan– If you don’t have equity in your home, ask your contractor if they work with local lenders to provide credit for their work.

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