Additions are a great way to increase your home's value and give you more functional space to enjoy. Whether it’s another bathroom, bedroom, or a sunroom to relax in, additions are also great for a homeowner quickly running out of space.
That being said, it’s important to know what you’re getting yourself into before taking on a big project. For this reason, we’ve compiled a list of six things you should know about home additions before you get started.
1. Increased Value
One obvious advantage is that it will add to your home's value; the bigger your home, the more it's worth. Keep in mind though, the value of your addition will be determined by the functionality of the space. If you're simply adding a mudroom to your back entryway, the value will be less than if you're adding an entire second floor to your home.
Also, be sure to consider whether the cost of the construction will be offset by the added value. If the cost of the addition equals less than what you could get back in the sale of your home, you may want to reconsider. You'll also want to make sure it adds enough functionality to make it worth the effort.
2. Higher Taxes
As your home's value increases, so too will your taxes. Municipalities base property taxes on provincially legislated rules which, in turn, base your taxes on the assessed market value of your home. The legislation states that if your property value goes up, you will be subject to a higher tax increase than the average. If the value decreases, you’ll receive a lower than average increase.
If you live in Edmonton and would like to get a better understanding of what you could be paying in property taxes, use the City of Edmonton property tax estimator. It won’t tell you definitively what you'll pay but it will give you a pretty good idea what to expect.
3. Permits Are A Must
Any time you build an addition, you will require permits from your municipality. These permits ensure the addition will be constructed following applicable bylaws and safety codes. Requirements may vary depending on where you live, but in Edmonton, homeowners require both a development permit as well as a building permit. Further permits will also be required if your addition includes electrical systems, ventilation, plumbing or gas.
The cost of these permits is based on the value of the construction being done. If you don’t apply for the appropriate permits, you could be fined by the city or deter future buyers when it comes time to sell. Worst case scenario, you may be required to tear down your addition if it doesn’t pass building codes or safety standards, or doesn’t respect the zoning allowed for your property.
4. So Are Zoning Requirements
Municipalities implement zoning bylaws for a number of reasons: to ensure population density is not out of control in certain areas, to separate industrial or commercial areas from residential neighbourhoods, and to control how high buildings, homes, and other structures can be in certain areas.
If you live in Edmonton, you can see the zoning designation assigned to your lot. To do this, take a look at the Edmonton Maps site. From there, the city’s zoning bylaws will indicate what sort of construction is permitted.
5. Energy Efficiency Is Key
Regardless of what kind of addition you plan on building, it’s going to be a costly investment - and even more so if you don’t use the proper materials. Using insulation, windows, doors, toilets or faucets that are not energy efficient can end up becoming an ongoing expense.
Ensure the contractors doing the work advise you of the materials they're using and, if you are doing the work entirely on your own, do your research before making purchases.
6. Patience Is A Virtue
Depending on the extent of the work being done, it could be some time before construction is complete. This is especially true if you plan on doing the addition yourself. Before you start, take into consideration the temporary change to your lifestyle. Can you deal with a large amount of dust in your home? Will being in close proximity to a potentially loud construction project be troublesome for you? If you're adding a second level to your home, can you live somewhere else for up to a couple months?
If the answers to these questions are no, then you may be better off building a new home. Among the many other advantages of new home builds, it will give you all the same benefits of an addition with half the stress.
Building an addition can be a great solution to provide more space for your family. However, it is important to factor in everything that goes into a project like this. You may discover that searching for a new home is a worthier investment of your time and money.
