analysis: Everything You Need to Know About Room Additions

Some ideas to collect for your room addition or bump-out:

• Kitchens:

  Kitchens are by far the most important room in the home; a kitchen renovation returns the greatest value on the investment. The challenge for some homeowners is the size and shape of their current kitchen area – it doesn’t allow much renovation given the limited space. So a bump-out or extending the kitchen into another part of the home area may be the best option to give your the kitchen the style and shape it needs.

• ideas for a kitchen: [view directory for ideas]

• Sunrooms/All Season Rooms:

  One popular reason why a lot of homeowners add an addition is for an all-season room. It could be a simple conversion of a deck or patio by enclosing the area into a all-season room with access by the existing patio door. A place you can enjoy the summer rays and a morning coffee without the worry of inclement weather and pesky insects.

• ideas for sunrooms: [view directory for ideas]

• Bathrooms:

  Does your bathroom need to be a bit larger? Perhaps! That is if you want to install a walk-in shower and a free-standing tub with space to walk around. The extension might be part of the master bedroom area to give you the space you need for an outstanding, modern-looking bathroom.

• ideas for bathrooms: [view directory for ideas]

• Bedrooms:

  If you are going to steal area space from the bedroom to enlarge the bathroom, perhaps you need to re-think how to make the extension work for both areas. Perhaps a bump-out may be needed where you have both an enlarged master bedroom and bathroom to meet your needs. This type renovation can also bring a higher resale value.

• ideas for bedrooms: [view directory for ideas]

• Recreation Rooms:

  We are referring to a game room – home theater room – man cave – or a she-crafts-room for individual and family entertainment. Areas of the home that can be converted into a recreational room include basements, attics, and garages. But you might consider an extension to add an additional room to the house strictly for recreational purposes.

• ideas for recreation rooms: [view directory for ideas]

• Home Office:

  Remote work is increasing; and the technological trends will likely allow for more opportunities to work from home. But for remote work to work, you need a dedicated area where you can work, converse, and manage your time without family interruptions. Many homeowners are converting rooms or adding small extensions where the home office can be privately sanctioned off during working hours.

• ideas for home offices: [view directory for ideas]

• Laundry/Mud Room:

  You must be tired of all that mud that comes into the house – or more tiresome with backpacks and other “home from school” stuff that gets dumped all over the house. That is where a mudroom comes into play – a place where the family must go before entering the house.

• A room where they can store shoes, dirty clothes, sporting equipment, backpacks, school stuff, etc., all neatly organized by personal storage space. And you can combine it into a laundry room for cleaning those dirty clothes that are all neatly stored in one place. It an easy extension off the garage, side or back door.
• ideas for laundry/mudroom: [view directory for ideas]

• Attics and Basements:

  What extensions can you do in the attic? The most popular extensions are those that build up with skylights, open balconies, and other construction to convert the attic into living space. Basements on the other hand are limited. Your best option is to covert the current space into a valuable segmented sections for recreation and storage.

• ideas for attics/basements: [view directory for ideas]

• Garages:

  You may not have an attached garage; or your current garage sq. footage is a bit too small to satisfy your needs. Garage extension are fairly easy to do if your property space allows for an extension. Larger garage space means room for multiple cars, rafter storage, and an important workbench.

• ideas for garages: [view directory for ideas]

• Putting It All Together:

  Any home addition or bump-out will require the structural necessities for wiring, possible plumbing, walls, doors, windows, flooring, etc. As you plan your renovation, view ideas that convert the construction into an important part of your home structural layout.

• ideas for home structures: [view directory for ideas]

• Making it Green and Automated:

  Don’t forget that future homes are becoming more “green” and automated. What green materials can you use for your construction and how can automation make your extension easy to maintain?

• ideas for home structures: [view directory for ideas]

Key takeaways before hiring a contractor:

• Do Your Research:

  Understand what goes into home remodeling – there are key steps and terms you need to follow. The best reference is to view our remodeling subjects that address home renovation and expansion:

• ideas and guides for renovations: [view directory for ideas]
• referent document: [use this one-page reference as a guide]

• Search Contractors:

  You might need a professional contractor to manage the addition or extension. Or you might become the general manager of your project and hire out individual sub-contractors for the framing, electrical, flooring, etc. Either way, you need to use thi form to find and evaluate the varying contractors you need.

• use this document for contractor search: [contractor search sheet]

• Should I help out?:

  Of course, if you feel confident doing some parts of this big project; you can always get your hands dirty and help others. But it’s always good to have someone reliable by your side. And contractors are just that. View these documents for selecting, negotiating and managing contractor services.

• managing and working with contractors: [view index page for information]

• Home Equity Line of Credit:

  A home equity line of credit is one of your best financing options for home additions and improvement. Use the line to pay for materials, supplies, contractor help, etc., when and as you need – no need to borrow the entire amount at once.

• You will only pay interest on the line amount that is being used. But the one disadvantage of equity lines is that the interest rate is variable. Meaning the rate that you pay on the amount borrowed can go up and down based on movement of the prime rate.
• If rates goes up, the project costs can be a bit higher when you consider the extra interest you pay over the life your outstanding balance.

• Home Equity Loan:

  A home equity loan is a set amount that you take out. So you need to estimate exactly the amount you need before you close on the loan. And if your project costs more that what you borrowed, you will need to find additional funds elsewhere. It is always best to borrow a little more than what is estimated. Then if the project costs come in under the borrowed amount, you can use the excess to pay down the loan.

• The disadvantage of home equity loans is that the interest rate charges begin on the full amount once you close – unlike the homw equity line that is used as needed and is open ended. The advantage of the equity loan is that you have fixed interest rates, which is better to budget and manage.

• Cash-Out Refi:

  Very similar to an equity loan – you need to estimate exactly the project cost – plus a variance for any additional costs. The advantage of a cash-out refi is that the amount is added to the refi and locked in at a lower rate (generally lower rates than home equity loan rates). So the interest paid on the project will be less and extended out the number of years on your refi, which can result is lower monthly payments.

• view more info about equity lines, loans, and refi: [finance options for home improvement]

• Bank Equity Option:

  This option uses the home equity line of credit but functions more like a bank. You use this option to not only fund the renovation project, but also other needs such as education, debt consolidation, financing an auto, etc.

• view more info: [about the bank equity program]

• Credit Card or Cash:

  Only use cash if you have loads of it and need to get rid of it. A better option is to use a rebate credit card for all payments such as supplies, materials, services, etc. They use your home or bank equity line to pay the credit card balance when due. What you get in return are the rebate points that can add up fast for some nifty rewards.

• view more info: [manage cards for maximum benefit (link open new win to our money center)]

• Personal Loan:

  Some contractors and suppliers may offer installment loans with pretty good terms such as free financing over a period of time. But note that with these type loans, the price that you finance is generally higher than if you negotiated a lower price using cash (check or card). Plus these loans can hurt your credit position if you rack up multiple loans for various needs.

• There are also personal bank and title loans. This may be the only option if you lack equity in the home to secure a home equity or refi. These loans could be secured to the home – but they may come with higher interest rates than equity loans and refinancing. You can often get theese rates down if you secure the loan with tangible property or investments.