Home Additions vs. Buying a New House
One of the most common issues families encounter with their current homes is lack of space. Children are born, things accumulate, incomes increase, and tastes change. When this issue first comes up, many homeowners begin to think that it is time to move. In many cases, problems with space can be fixed with a home addition or expansion. This choice isn’t for everyone, so today we are going to compare buying a new house to adding on to your existing house so you can make an informed decision.
Creating Your Dream Space
Whether you are adding a room to your existing home or purchasing a new home, you have an opportunity to create living spaces you have always dreamed of.
Home Addition Designs
If you decide to go with a home addition, you are starting with a true blank slate. During the first meeting with your home addition contractor, you will communicate what you are looking for and the contractor will go over any limitations based on your existing structure and property. From the base construction down to the finishing details, you will have full control based on your needs and budget. At Deer Ridge Construction we have decades of experience working with homeowners to create their dream spaces with home additions.
Purchasing a Home Designs
When you are purchasing a home there is less flexibility in creating your dream spaces. The home is already laid out to the previous homeowner’s preferences, and any changes will be an additional cost on top of the cost of the home. For those looking to have full design control over their new home, we recommend a new home build. At Deer Ridge Construction our team loves working with families to build their dream homes. We take our customers’ ideas and use our decades of building experience to create the perfect homes for their needs and budgets.
Purchasing a new home and building a home addition will both be time investments and will shake up your daily routine. Let’s look at the time it takes to complete a home addition or purchase a house, and how your life will be affected by each.
Time to Complete a Home Addition
At Deer Ridge Construction our home addition projects typically take about 3-4 months from conception to completion. As a home renovation contractor, Deer Ridge Construction operates a clean work site, and we do everything we can to disrupt our customers’ lives as little as possible. That being said, in some cases, we recommend the family find temporary housing to avoid construction noise, and to save money on heating and cooling during the construction process. This is typically only during the demolition phase, and for no more than a week or two. For working families, our team typically starts shortly before you would leave for work, and finishes around the time you would be getting home. This means that the majority of the construction noise is happening when you’re out of the house, and you can maintain a peaceful life in the evenings.
Time to Purchase a New Home
Purchasing a new home takes the stress out of living in a construction zone, but can eat up your time in other ways. Moving your family and its belongings is a daunting task, and can take months to prepare. Also, if you want to make the new home your own, you will want to complete construction projects before moving in. On the flip side, this can be a great opportunity to look through all of your things and donate or throw out unused items that have accumulated over the years. Purchasing a new home also comes with realtors, paperwork, and searching for the home.
Like any major home decision, cost plays a large part in deciding whether to add a room to your house or purchase a new one. Let’s take a look at the costs you should expect from a home addition and purchasing a new home.
Home Addition Cost
When pricing out a home addition, we recommend that you first get an idea of your needs, and communicate that with a trusted home addition contractor. Forbes Magazine reported that in 2023 home additions typically cost between $21,000 and $73,500, or an average of $46,000. Costs range widely based on the needs of the homeowner. For example, if you plan on including a bathroom in your addition you have to add in the cost of the plumber. Also, the quality of windows, doors, and fixtures can greatly influence the cost of your home addition.
Cost to Purchase a Home
The cost of purchasing a home will vary even more than the cost of a home addition and relies heavily on square footage, condition of the home, location, and other factors. Zillow reports that the average Pennsylvania home value is $256,703, up 4% since last year. When purchasing a home you will also have to take into account closing costs and realtor fees, which can add up quickly.
Return on Investment
While the initial intentions of a home expansion or purchasing a new home may be related to space or style, return on investment usually plays a role in the homeowner’s decision. We recommend basing your decision around the needs of your family and then using ROI to inform your home expansion or new house search.
Home Addition ROI
As we discussed previously, adding a room or addition to your house requires a substantial up-front investment. That being said, leading experts are saying that in 2023 homeowners can expect to see a 30%-60% return on investment with a home addition. This means that your home will increase in value by about 30%-60% of the cost of the home addition.
New Home ROI
Purchasing a new house is historically a much riskier investment, and we strongly advise setting strict budgets before you start searching. The Real Estate market is heavily influenced by supply and demand, interest rates, and other factors out of the homeowners control. However, if your family has outgrown your current home, and you have the means, purchasing a new home could be the right move for you.