There are many benefits from home remodeling projects, especially for the homeowner who builds an additional room. It can provide some much needed extra room for a growing family and in general create an environment that is simply more spacious which may simply mean more room in which to entertain guests. Home additions can be personally designed to meet specific needs. And it can be a cost effective method to adding more value to the home. But all room additions are not created equal and even though you add more livable space, it may not mean that the NJ home is going to increase in value next time the property appraiser looks it over. Depending on the layout and present size of the house, it can be more beneficial to add on a bathroom than a bedroom. Here are some ideas to help homeowners sort it all out.
Room Additions Offering the Highest Return
Have you ever heard a homeowner complain about a bathroom or kitchen that was too large? Likely you have not, because the common concern is the lack of adequate space rather than an abundance. As a general rule, adding a bathroom or expanding a kitchen offer the most return on investment when it comes time to resell the house. A bathroom is usually a very good addition because it makes the home more functional, especially if there is only one bathroom in the residence. Larger kitchens are almost always a better selling point. Family rooms and bedrooms are the least likely to add value to the home but a home office or a sun room can bring in about 50% in terms of a return on the investment. That’s not to say that adding a bedroom is an all bad thing; it will largely depend on the layout of the house and how much it would increase its functionality.
When looking at room additions and what to expect in the way of returns on investments, regional locations can be a very large influencing factor. For instance, if the home is located in a warm region, then adding a backyard deck can increase the overall value of the home. But if the home is located in a region which stays cold much of the year there will not likely be as much of a return on the investment. A second story addition will not likely offer as great of a return in an earthquake prone area as it might in other regions. Before remodeling or building an addition be sure to check into what is more common for the region where the home is located.
The Bottom Line
Even though you want to think about the possible return on investment when building an additional room, you will also want to factor in your current needs. If you are planning on staying in the home for some time, an addition may mean that you are more comfortable while you are there. This extra enjoyment might override the return on investment. Many experts agree that a homeowner should only complete a major remodeling project or room addition if they are planning to remain in the home for at least 5 more years. But each situation will largely depend on the local market at the time. Before undertaking a huge remodeling project, it is a good idea to consult with a local property appraiser or a real estate agent. They will be able to tell you what the additional square footage might mean to the house in terms of investment and if the addition will be one that will benefit you.