Is it better to add an addition or remodel my current home?

Contractor demolishes a kitchen for a Portsmouth, NH remodel.

Deciding whether to add on to your home or work within your existing space through remodeling can feel overwhelming. Have you been wondering:

  • Should I add on to my home or remodel the existing space?

  • What are the pros and cons of home additions vs. remodeling?

  • How much does a home addition cost compared to remodeling?

  • Will a home addition increase my property value?

  • Is it cheaper to remodel or add on to a house?

  • How do I decide if my home has enough space to remodel?

Read on! We’ll answer all of these and more questions to help you make the best decision for your home!

What is the difference between an addition and a remodel?

Building an addition and remodeling are two distinct approaches to enhancing your home, each with its own set of considerations.

  • Building an addition: This involves expanding your home's footprint by constructing new space, such as a new room, a garage, or an entire second story. The primary advantage of an addition is the creation of additional square footage, which can significantly increase your home's functionality and value. However, it typically requires extensive planning, zoning approvals, and construction time, which can lead to higher costs.

  • Remodeling: Remodeling focuses on transforming and optimizing the existing space within your home. This could involve knocking down walls to create an open floor plan, updating outdated rooms, or repurposing underused areas like basements or attics. Remodeling is often less disruptive to your property and may not require as much regulatory approval as an addition. It’s usually more cost-effective but doesn’t add new square footage—just a better use of what you already have.

Choosing between an addition and remodeling depends on your specific needs, budget, and long-term goals. 

What are the pros and cons of home additions vs. remodeling?

Home Additions:

  • Pros:

    • Adds significant square footage and increases living space.

    • Customizable to your specific needs (e.g., new bedrooms, bathrooms, or a larger kitchen).

    • Can increase your home’s overall value if done correctly.

  • Cons:

    • More expensive and time-consuming compared to remodeling.

    • Requires permits, zoning approvals, and possibly foundation work.

    • Can disrupt your yard, landscaping, and sometimes your daily life during construction.

Remodeling:

  • Pros:

    • Can improve the functionality and flow of your existing space.

    • Less expensive and faster to complete than home additions.

    • Usually involves fewer permits and less disruption to your daily life.

  • Cons:

    • Limited by the current layout and square footage of your home.

    • May not add as much value as a significant home addition.

    • Requires creative design to make the most of existing spaces.

What should I consider when deciding between a home addition and remodeling?

When deciding between a home addition and remodeling, consider your long-term goals, budget, and the potential disruption to your daily life. Ask yourself:

  • How much space do I truly need? If your current home is just a little tight, remodeling might suffice. But if you need significant extra space, an addition could be necessary.

  • What is my budget? Additions typically cost more, so ensure you're financially prepared for the investment.

  • How long can I tolerate construction? Additions usually take longer and might require you to temporarily move out, while many remodels can be done with minimal disruption.

  • How will this impact my home's resale value? Consider whether the addition or remodel will make your home more attractive to future buyers.

How much does a home addition cost compared to remodeling?

The cost of a home addition can vary widely based on the size, complexity, and materials used. Generally, a home addition costs significantly more than remodeling, with prices often starting around $150,000 and going up from there. This is due to the extensive work involved, such as foundation pouring, framing, electrical and plumbing installations, and finishing.

Remodeling, by contrast, tends to be more budget-friendly. The cost will depend on the scope of the project, but you can often expect to spend less than you would on a home addition. For example, a kitchen remodel might cost between $70,000 and $120,000, depending on your choices. Ultimately, the decision should align with your budget and the specific needs of your home.

How long does a home addition take compared to a remodel?

Home additions generally take longer to complete than remodels. A typical home addition might take anywhere from three to six months, depending on the size and complexity of the project. This timeline includes everything from obtaining permits to completing construction and finishing touches.

Remodeling projects, on the other hand, can often be completed more quickly. Depending on the scope, a remodel might take anywhere from a few weeks to a few months. Keep in mind that timelines can vary based on factors like weather, contractor availability, and unexpected challenges that arise during the project.

Is it easier to live in my home during a remodel or an addition?

Living in your home during construction is a common concern for homeowners, and the level of disruption can vary significantly between a remodel and an addition.

  • Remodeling: Remodeling often involves working within the existing structure, which can mean areas of your home are off-limits during the project. Depending on the extent of the remodel, you might be able to live in the home, but you’ll likely need to adjust your daily routines. For instance, if your kitchen or bathrooms are being remodeled, you may need to set up temporary spaces for cooking or bathing. Noise, dust, and limited access to certain parts of your home are common inconveniences during a remodel.

  • Building an addition: An addition can sometimes be less disruptive, especially if it’s being constructed entirely outside the existing structure. For example, if you’re adding a new wing or a second story, much of the work might be done outside or in an area not yet integrated with your current living space. However, once the new space is connected to your home, there will likely be a period of transition where noise and dust could impact your daily life. If the addition requires altering existing spaces, such as when connecting new rooms to your current layout, the disruption may be similar to that of a remodel.

In both cases, clear communication with your contractor can help minimize disruptions. Some homeowners choose to temporarily relocate during major construction to avoid the inconvenience altogether, while others stay and work around the construction. Your decision will depend on the project’s scope, your tolerance for disruption, and your living arrangements during the build.

For practical ideas on how to make your stay easier, be sure to check out the article: Can I live in my home during a remodel?  

What permits do I need for a home addition vs. a remodel?

Both home additions and remodeling projects usually require permits, but the scope and type of permits needed can differ. For a home addition, you'll likely need multiple permits, including building, electrical, plumbing, and possibly zoning approvals. This is because you're altering the structure of your home and possibly affecting its footprint on the property.

For a remodel, especially if it involves significant changes like moving walls or updating electrical/plumbing systems, you'll also need permits. However, if you're just updating finishes or making minor changes, the permit requirements are often less extensive. Always check with your local building department to ensure you have the necessary permits before starting any project.

What are the potential challenges of adding on to my home?

Adding on to your home can come with several challenges, including:

  • Zoning and permit issues: Ensuring your addition complies with local regulations can be time-consuming and may limit what you can do.

  • Disruption to daily life: Home additions often involve significant construction, which can be noisy, messy, and disruptive.

  • Budget overruns: Unforeseen issues, such as needing to upgrade the foundation or discovering hidden problems, can drive up costs.

  • Impact on outdoor space: Adding on to your home may reduce yard space or disrupt landscaping, which could be a concern if you value your outdoor areas.

What is the return on investment for a home addition?

A well-executed home addition can offer a strong return on investment (ROI), especially if it adds functional space that buyers value, such as an extra bedroom, bathroom, or an expanded kitchen. On average, homeowners might recoup around 60% to 80% of the cost of a home addition when they sell their home, though this can vary based on location and market conditions.

However, it’s important to remember that ROI isn't just about money—it's also about enhancing your quality of life and meeting your family's needs. If an addition makes your home more livable and enjoyable, the personal return might outweigh the financial one.

How much space do I need for a home addition?

The amount of space needed for a home addition depends on the type of addition you're considering. For instance, a new bedroom or office might only require a few hundred square feet, while adding a full suite with a bathroom could need significantly more space. Consider not just the square footage of the addition itself but also any necessary adjustments to your yard or landscaping. If your lot size is limited, you might want to explore options like building upwards rather than outwards.

Can I expand my home upwards instead of outwards?

Yes, expanding your home upwards—often called a "second-story addition"—is a viable option, especially if your lot size is limited. Adding a second story can effectively double your living space without reducing your yard or outdoor areas. However, this type of addition can be complex, often requiring structural reinforcement of your existing foundation and careful planning to integrate with the existing architecture.

Before deciding on a second-story addition, consider the following:

  • Zoning regulations: Check local height restrictions and building codes.

  • Foundation strength: Your existing foundation must be able to support the added weight.

  • Impact on design: Consider how the second story will integrate with your home’s overall design and aesthetic.

  • Cost: While potentially less expensive than a full ground-level addition, second-story additions can still be costly due to the need for structural reinforcement and extensive remodeling.

How do I know if my home’s foundation can support an addition?

Before adding a second story or expanding outwards, it's essential to assess whether your home’s foundation can support the additional weight. A structural engineer can evaluate your foundation and determine if it's suitable for the planned addition. They’ll look at factors like the type of foundation, soil conditions, and the overall condition of the existing structure.

If your foundation isn't strong enough, you might need to reinforce it or consider alternative options, such as a smaller addition or remodeling within the existing footprint. Investing in a professional assessment early on can save you time, money, and potential issues down the road.

Will a home addition disrupt my yard or landscaping?

A home addition will likely disrupt your yard or landscaping, especially if the addition extends outwards. You may need to remove trees, shrubs, or other landscaping features to make room for the new construction. Additionally, the construction process itself can damage grass, gardens, and hardscapes due to the movement of heavy equipment and materials.

If preserving your outdoor space is important to you, consider discussing these concerns with your contractor early in the planning process. They may be able to suggest ways to minimize disruption or help you plan for restoring your landscaping after the addition is complete.

What are the zoning restrictions for home additions?

Zoning restrictions vary by location, so it’s crucial to check with your local planning department before starting a home addition. Common restrictions include:

  • Setback requirements: These dictate how close your addition can be to property lines, streets, or other structures.

  • Height limits: There may be regulations on how tall your addition can be, especially if you’re building upwards.

  • Lot coverage limits: Some areas restrict the percentage of your lot that can be covered by buildings, which could affect the size of your addition.

  • Historical district regulations: If your home is in a historic district, there may be additional rules about the appearance and materials used in your addition.

Understanding these restrictions early in the planning process can help you avoid costly delays and ensure your addition complies with local regulations.

Will a home addition increase my property value?

Yes, a home addition can increase your property value, particularly if it adds much-needed space or functionality. Extra bedrooms, bathrooms, or a larger kitchen are features that many homebuyers look for, and adding these can make your home more appealing on the market. However, it's crucial to ensure that the addition is in line with the rest of the neighborhood. Overbuilding, or adding on too much compared to other homes in your area, might not result in as high a return as expected.

Is it cheaper to remodel or add on to a house?

In general, remodeling is usually cheaper than adding on to your home. Remodeling typically involves working within the existing structure, which reduces costs related to new foundations, roofing, and exterior work. If you’re looking to make impactful changes on a tighter budget, remodeling might be the better option.

However, if your current home simply doesn’t meet your needs in terms of space, an addition might be worth the higher cost. It's about balancing your budget with your long-term goals and the potential value added to your home.

How do I decide if my home has enough space to remodel?

To determine if your home has enough space to remodel, start by assessing your current layout and identifying areas that could be better utilized. Consider whether moving walls, reconfiguring rooms, or upgrading finishes could provide the functionality and comfort you need. An architect or designer can help you explore creative solutions to make the most of your existing space.

If your home feels cramped or lacks essential features even after considering these options, you might need to think about adding on. The decision often comes down to whether your current space can be optimized to meet your needs or if an addition is necessary to achieve your goals.

How can I maximize the space in my existing home without adding on?

Maximizing the space in your existing home without adding on requires creative thinking and smart design. Here are some ideas:

  • Open up the floor plan: Removing walls can create a more open, spacious feel and improve the flow between rooms.

  • Use multi-functional furniture: Consider furniture that serves multiple purposes, like a sofa bed or a dining table with storage.

  • Utilize vertical space: Add shelving or cabinets up to the ceiling to make the most of your walls.

  • Convert underused spaces: Turn a basement, attic, or garage into a functional living area.

  • Improve storage solutions: Built-in cabinets, custom closets, and clever storage solutions can help reduce clutter and make your home feel more spacious.

These strategies can help you make the most of your existing space, potentially avoiding the need for a costly addition.

What kind of contractor do I need for a home addition vs. a remodel?

Choosing the right contractor is critical, whether you're planning a home addition or a remodel, and the type of contractor you need may differ depending on the scope of your project.

  • For a home addition: You’ll want to look for a Builder or General Contractor with experience in large-scale construction projects that involve expanding the footprint of a home. These contractors are typically well-versed in structural work, foundation pouring, framing, and managing complex projects that may involve significant plumbing, electrical, and HVAC adjustments. Design-build firms can be particularly beneficial for home additions because they handle both the design and construction phases, ensuring everything is coordinated from start to finish. It’s also helpful if the contractor has experience working with local zoning laws and building permits, as home additions often require a great deal of regulatory oversight.

  • For a remodel: Remodeling Contractors typically specialize in working within the existing structure of a home. They should have a strong eye for design and functionality, along with the technical skills to make structural adjustments, update layouts, and integrate new elements seamlessly into your existing space. While they may not need the same level of expertise in areas like foundation work or large-scale framing, they should have a thorough understanding of renovating kitchens, bathrooms, basements, and other interior spaces. Depending on the complexity of your remodel, you may also want to consider a Design-Build Contractor, as they can help guide you through both the creative and construction phases.

Ultimately, whether you're planning a home addition or a remodel, it's essential to choose a contractor who is experienced, communicative, and able to meet the unique needs of your project. Always check references, ask to see past work, and ensure the contractor has the appropriate licenses and insurance for the type of work you need.

To learn more about different types of contractors, and what they all do, read our article here: What kind of contractor do I need for my project?

What financing options are available for home additions or remodels?

Financing a home addition or remodel can be done through several options, depending on your financial situation and the scope of the project. Common financing methods include:

  • Home equity loans or lines of credit (HELOCs): These allow you to borrow against the equity in your home, often at a lower interest rate.

  • Cash-out refinance: This involves refinancing your mortgage for more than you owe and taking the difference in cash.

  • Personal loans: Unsecured personal loans can be used for home improvements, though they typically have higher interest rates.

  • Credit cards: While not ideal for large projects, credit cards might be an option for smaller remodeling jobs if you can pay off the balance quickly.

  • Government programs: Some government programs offer loans or grants for home improvements, particularly for energy-efficient upgrades or necessary repairs.

It’s important to explore your options and choose the financing method that best fits your budget and long-term financial goals.

Should I add on to my home or remodel the existing space?

Deciding whether to add on to your home or remodel within your existing space is a big decision, and it's essential to weigh all the factors carefully. By considering your needs, budget, and long-term goals against all of the factors we laid out, you can choose the option that best suits your family and lifestyle. Whether you opt for a remodel to maximize your current space or decide on a home addition to expand your living area, the key is to ensure the project enhances your home’s functionality and comfort.

If you're leaning towards remodeling and want to explore the idea of transforming your existing space, we're here to guide you every step of the way. Contact us today to discuss your remodeling ideas and see how we can help bring your vision to life!

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