I'm weighing the costs of adding a new section to my house versus tearing down and building a new one altogether. I was quoted by a friend of mine who builds homes at around $80-100 per square foot for an addition. This seems reasonable based on my home's current value and some online calculators. However, when I shared this figure, people said it sounded too cheap. After speaking with two other contractors, they suggested that for a 600 sq ft addition, I'd be looking at $200-$300k, asserting that building a new home would be cheaper at $200 per sq ft. In my local housing market, I could buy a much larger home for $300k. I'm now questioning whether these contractors are trying to dissuade me from the addition or if there's truth to the claim that new homes are less expensive than additions. Is it really the case that additions generally cost more per square foot?
4 Answers
It really varies based on the specifics of your project. If your addition requires demolition or other complicated work, it could end up costing more than starting fresh. I've seen situations where folks kept their old foundation and major elements, which helped cut costs on what seemed like almost a new build. So, it depends on how extensive your addition is!
For my addition, we faced some unexpected structural problems once we started. It's a wild ride!
Typically, additions cost more because you might uncover issues during demolition. They're not just like starting from scratch; you have to integrate them into an existing structure. Plus, you need all the foundational elements like a new roof and walls, which can drive up costs. If your friend can offer a realistic estimate that’s around $100-$120, that's worth checking out!
Building and making it look seamless with the existing house can add so many hidden costs!
Exactly! Then there's trying to meet the local building codes, which can become a whole extra cost on top.
Your calculations seem a bit off. The quotes you got for the addition were around $200k to $300k for 600 sq ft, which averages out to $350 to $500 per sq ft, not $200 like the contractors said for new homes. If their numbers are right, you might want to request itemized bids to compare accurately. That way, you can figure out where the costs are really going!
Going forward with clear drawings might help; they can give more specific estimates!
Thanks for catching that! I typo'd earlier. They meant $200 for new builds while saying that additions might just be more pricey.
In my area, new builds are often cheaper than adding on, especially considering the hassle of renovations. You might find that it's not worth the trouble, given all the permitting and work on the existing structure. Honestly, if you have the funds, using your equity for a new build can be a viable option!
I've heard of homeowners deciding to raze and rebuild since they feel it saves them more time and cost in the long run.
But be wary of where you live and the zoning laws; some places have very strict regulations.
I’m in a similar situation, and what I found is that as long as you keep some elements intact, like floors and walls, it might actually save some cash. Just be prepared for surprises once you start demo.