The True Cost of Home AdditionsPosted by Kevin Hughes on Saturday, February 9th, 2013 at 12:41pm.
One of the greatest benefits to owning your own home is the ability to do what you please with it. You can paint any room any color you like, yank up carpet, lay down new tile and even knock out walls, things you can only dream about with a rental property!
Large remodeling projects are quite the undertaking, and if you're considering making some hefty alterations, there's more to the cost than just the materials and labor. It's important to take a close look at the future payoff versus the money invested. One important cost many homeowners fail to consider is their insurance premium. Home renovations such as adding a new room will usually bump your rate up.
Adding a New Room
Whether you are considering adding a sunroom, another bedroom or any other type of new space, you can almost bet on a larger insurance bill. With each new room you're increasing the square footage of your home, an essential part in the insurance rate calculation.
Sometimes when homeowners decide to improve upon their home, they don't realize the risk of over-improvement. If your home ends up being the most expensive one in the neighborhood in either terms of insurance or value, your home may get edged out of the competition when it comes time to sell. But no worries-there are plenty of things you can do to improve your home without breaking ground that are mid to low in price with an excellent "return on investment."
Replace your front door or the garage door or both to increase curb appeal. Put in new, energy efficient windows. And updating the kitchen or bathroom is always a good idea. And if you're curious about the things you can do that can lower your home insurance, think all things security related, such as a deadbolt lock on the front door. If you opt to install a reliable security system that can alert police, that can lower your insurance payout by up to 5 percent, sometimes more. Other ways to help reduce the bill include safety devices such as smoke and carbon monoxide detectors and fire extinguishers.
But if you're set on renovating your home, just be sure to do the necessary research before taking the plunge. It wouldn't be a bad idea to talk to those who have undertaken similar projects to the one you're considering. And it's always a good idea to start small and keep it realistic.
Hughes Real Estate Group is Boise Idaho's leading team of real estate professionals, and we're available 24/7 at (208) 571-7145.
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