How do you determine if adding on to your home will help the value of your home?

Answer 1

I'd contact the realtor who helped you buy your home, since he'd be happy to try to help you so you'd use him again. Some additions add more value than others--decks and new bathrooms, for example. A lot depends on what you already have. Most buyers want houses with 3-4 bedrooms and at least 2 full bathrooms, so if your house has those things, adding a 5th bedroom won't add much to the value; but if your house has 1 full bath and 2 bedrooms, adding another bath and bedroom will help a lot.

Answer 2

The nature of the addition, comparable homes in the neighborhood and other factors are involved in any such determination. Adding a bedroom, family room, or similar tends to increase value. If you decide to add a 300 square foot greenhouse to grow your orchids, don't expect any value increase.

How much yard will be left after you construct the addition. If the addition turns your remaining yard into postage stamp size, you've got another problem.

The variables are almost endless. If you know a trusted real estate agent, invite them for coffee, and see if you can get some guidance about the financial ramifications of your intended addition plans.

Answer 3

Talk to a property appraiser. Also talk to realtors to find out what people are looking for in a home. The most important thing is that any money you put into the home increases the property value. It's far better to update kitchens and bathrooms than it is to finish a basement, for instance. Again, you don't want to have the nicest house in the neighborhood, because the lower property values of your neighbors homes will decrease your property value.

Answer 4

Adding on will increase the value of your home, but may not add what it costs you. You could spend $25K adding on and it might only add $10K-$15K to the market value of the home, especially if you pay "retail" to get it done.
ALWAYS get inspections and permits, do not do additions without them. You might get away with it for awhile, but it could cause legal problems for you in the future, even after you sell the house. You should only add on to increase your lifestyle if you can afford it. Be very careful about overbuilding for your area. It is often difficult to sell the most expensive house in the neighborhood. Adding a fancy $25K pool could add as little as $5K to your home, to some people a pool is a negative feature.

Answer 5

Eye wash is always safe.
Compare you new home with the neighborhood. Are you over building? Will it still fit the norm of the area?