Maximizing ROIs: Factors that Affect Home Additions’ Value
A new home addition is a significant investment that requires careful planning. Homeowners naturally want to get the best ROI on a new home addition, but given how erratic the housing market can be, trying to gauge the ROI is difficult.
You can, however, come up with a rough estimate by taking into account several factors. Colonial Remodeling, LLC, a top siding contractor in the state, explains more below.
The main reason for pursuing a home addition is enhanced functionality. You can significantly enhance your quality of life by expanding your kitchen, adding a new recreational area or creating new living spaces.
Functionality also plays a large role in determining the resale value of your home and your ROI. Home additions will almost always increase the resale value of your home to some extent, but by how much depends on several market forces; one of which is the buyer.
Buyers will be looking for certain features in houses, depending on their needs. In many cases, these features can increase the amount they’re willing to pay or clinch the sale. For instance, a family of five would be more interested in a larger kitchen, while a middle-aged couple with only one kid might be more interested in the aesthetic appeal of the home. As such, a kitchen expansion would appeal to the former while getting a siding replacement would be more attractive to the latter.
The trick here is to get a home addition that has a wide appeal to buyers from different backgrounds.
Maintenance and Utility Costs
However, you can’t just think about the potential increase to your home’s resale value; you also have to take into account the utility and maintenance costs the addition will add to your monthly expenses. These can reduce the potential ROI over time, so you need to take this into consideration as well.
There’s only one sure way to get a good ROI, and that’s through a quality home addition. To ensure your home addition is high quality, only hire qualified and experienced contractors.
Colonial Remodeling, LLC, is an Elite Preferred James Hardie® Remodeler with more than two decades of experience. We specialize in home additions and siding installation. To get a free estimate, call (703) 822-7222 or fill out this form. We serve homeowners in Triangle, VA.