Home Addition
Homeowners are investing more in adding extra rooms to their homes than nearly any other project these days when it comes to home remodeling in Atlanta. This is why now more than ever it’s important to determine beforehand the cost benefit of your new home addition.
You don’t have to be a Harvard MBA to understand the importance of cost benefit analysis. The reason to analyze whether something is a good investment is to, well, know if it’s going to be a good investment! If it sounds oversimplified, okay, it is, but the fact is that there are some home additions that aren’t worth the money that’s put into them. For instance, you’re not going to add a home office if you don’t work at home. And you’re not going to add a nursery if you’re a single dude sworn to lifelong bachelorhood. These examples may seem pretty obvious, but there are a lot of home additions that turned out to be a bad idea and they weren't so obvious to homeowners before they sank more time and money into them than they care to remember.
The benefits to putting an addition on your home are many, but it’s a good idea to analyze ahead of time just what the return on your investment is going to be. And, make no mistake about it, return on investment isn’t just something that can be calculated monetarily. For example, there’s cost benefit to such things as having a media room where your kids and their friends love to hang out rather than getting into mischief at the local mall. So, too ,is there cost benefit to having an extra room to use as your home office, rather than spreading papers chaotically out on the dining room table where important work can get lost or damaged. There are so many factors to consider when you’re figuring cost benefit of a home addition, and doing a cost benefit analysis before you break ground or spend a dime is vital to getting the most from your investment. A cost benefit analysis takes all the negative factors and weighs them against all the positive factors, and the sum of these gives you your answer.
In order to determine whether the home addition you have in mind is a good thing, consider the return on your investment, or ROI. To consider ROI, first consider these factors: purpose, property, and profit. Ask yourself questions concerning these, and be sure to be candid and objective, leaving emotion out of the equation as much as possible. Will your new room addition have a purpose that will benefit you and your family in the long run, on a regular basis, or both? If your room addition is something you’ve dreamed about since you were a kid, remember, you’re an adult now. That room you wanted when you were 17 to play your guitar and jam in might not be as useful to you now. Another important factor is property. Will your new home addition increase your home’s square footage enough to make your investment worth it? If you’re adding, for instance, a laundry room, will that free up space in the rest of the house? Finally, consider the profit of your new home addition. Will your remodeling project add resale value to your home? Of course, not all home additions have to add resale value to be valuable. For example, adding a home office might not be a homebuyer’s first love when it comes to resale value or curb appeal, but it may be profitable for the work life of the current homeowner ... you ... and that alone can make it a good investment.
When you’re making that final decision about what kind of extra room you want on your home, the most important cost-benefit analysis is this: What kind of room will be most beneficial to the lives of you and your family? If you’re not going to sell your home anytime soon, you might as well enjoy it to the fullest. Sure, you’re ready to add an extra room, but if nobody’s going to use it, you’ve just thrown thousands of dollars of your hard-earned savings down the proverbial latrine. So, when you’re thinking about resale value and cost benefit analysis and all those other two-dollar business concepts, take some advice from top home remodeling contractors… make family value number one on your list.
You don’t have to be a Harvard MBA to understand the importance of cost benefit analysis. The reason to analyze whether something is a good investment is to, well, know if it’s going to be a good investment! If it sounds oversimplified, okay, it is, but the fact is that there are some home additions that aren’t worth the money that’s put into them. For instance, you’re not going to add a home office if you don’t work at home. And you’re not going to add a nursery if you’re a single dude sworn to lifelong bachelorhood. These examples may seem pretty obvious, but there are a lot of home additions that turned out to be a bad idea and they weren't so obvious to homeowners before they sank more time and money into them than they care to remember.
The benefits to putting an addition on your home are many, but it’s a good idea to analyze ahead of time just what the return on your investment is going to be. And, make no mistake about it, return on investment isn’t just something that can be calculated monetarily. For example, there’s cost benefit to such things as having a media room where your kids and their friends love to hang out rather than getting into mischief at the local mall. So, too ,is there cost benefit to having an extra room to use as your home office, rather than spreading papers chaotically out on the dining room table where important work can get lost or damaged. There are so many factors to consider when you’re figuring cost benefit of a home addition, and doing a cost benefit analysis before you break ground or spend a dime is vital to getting the most from your investment. A cost benefit analysis takes all the negative factors and weighs them against all the positive factors, and the sum of these gives you your answer.
In order to determine whether the home addition you have in mind is a good thing, consider the return on your investment, or ROI. To consider ROI, first consider these factors: purpose, property, and profit. Ask yourself questions concerning these, and be sure to be candid and objective, leaving emotion out of the equation as much as possible. Will your new room addition have a purpose that will benefit you and your family in the long run, on a regular basis, or both? If your room addition is something you’ve dreamed about since you were a kid, remember, you’re an adult now. That room you wanted when you were 17 to play your guitar and jam in might not be as useful to you now. Another important factor is property. Will your new home addition increase your home’s square footage enough to make your investment worth it? If you’re adding, for instance, a laundry room, will that free up space in the rest of the house? Finally, consider the profit of your new home addition. Will your remodeling project add resale value to your home? Of course, not all home additions have to add resale value to be valuable. For example, adding a home office might not be a homebuyer’s first love when it comes to resale value or curb appeal, but it may be profitable for the work life of the current homeowner ... you ... and that alone can make it a good investment.
When you’re making that final decision about what kind of extra room you want on your home, the most important cost-benefit analysis is this: What kind of room will be most beneficial to the lives of you and your family? If you’re not going to sell your home anytime soon, you might as well enjoy it to the fullest. Sure, you’re ready to add an extra room, but if nobody’s going to use it, you’ve just thrown thousands of dollars of your hard-earned savings down the proverbial latrine. So, when you’re thinking about resale value and cost benefit analysis and all those other two-dollar business concepts, take some advice from top home remodeling contractors… make family value number one on your list.