A home addition is surely a nerve reckoning and an exciting process at the same time. Nerve reckoning because you never know what is going to happen and exciting because you want the final results as soon as possible. However, an important factor that you are missing out on before selecting home addition contractors is the budget. Without proper budgeting, you are going nowhere. We are going to share some tips that will help you develop a perfect budget for your dream home addition.
Check The Costs
The first thing you need to do when it comes to budgeting for home addition is to calculate or estimate the total cost of the home addition project. You should do it by hiring a contractor. If you intend to do it on your own, you will be missing out on a lot of minor details.
Other than that, you should focus on practicality. Majority of the homeowners tend to get swayed by luxuries and accessories only to find out that the total cost has exceeded their budget. So, now instead of being excited, they are worried.
Therefore, you should first on the necessities of the project and leave the unnecessary features to the side for a moment. Furthermore, you should include the cost of hiring an expert as well. Some experts like to get paid by the hour, whereas others prefer daily or weekly.
Figure Out How Much You Have To Spend?
The next thing you should estimate is how much money you have to spend. If you are paying in cash, then you can skip this part. However, if you plan on taking a loan, you will need to figure out the amount the bank will be willing to lend and how much will it add to your monthly expenses.
Although, there are several different types of loans out there the most popular tends to be the home equity line of credit. This type of loan is secured by home equity. So, you can get it for a lower rate when compared to other loan types. Plus, you can also deduct the interest on your taxes.
In addition to that, a HELOC comes with a checkbook, which allows you to draw the money as needed up to the maximum amount as it is not a loan but a credit line. It also allows you to formulate your repayment schedule. So, if you come to the point where you find out that you cannot afford it, you should reconsider your project.
Get Quotes From Contractors
This is the part where you need to discuss things to with the contractors. Depending on your project, you would want to figure out exactly what you want. Everything from the kitchen countertop material to the room flooring, you should specify the details and communicate them to the contractors.
Before making a final decision, get quotes from at least three contractors. If possible, ask your social circle or someone close to the family to provide suggestions. Bear in mind that the lowest price doesn’t mean an excellent job.
Depending on your state, contractors may be required to have licenses, certifications, or permits to work on home additions. If that is the case, the prices will be slightly higher. Therefore, interview the contractors as well and ask them about their prior experience or share their portfolio.
How Much Does A Home Addition Cost?
Home addition costs can range from a few thousand dollars to hundreds of thousands of dollars. There are many factors that contribute to the costs. Factors such as the region you are living in, the experience and skills of the contractor along with the materials are the most significant.
On average, home additions cost around $10-$60 to $150 per square foot. So, if you were to add the numbers up, things could be expensive and this is why budgeting is important.
Budgeting for home addition is not that difficult. All you need to do is define your needs and preferences and get quotes from multiple home addition companies McLean. You don’t have to select the contractor with the lowest quote. Check the references and portfolio to select a contractor. Once that is done, you can begin your project keeping a close eye on the costs.