Adding Resale Value: Home Addition or Renovation?

Best Rockwall Realtors Sarah Naylor January 28, 2023

A property is always an investment. The average value of a house in Texas is $315,451. Many homeowners are looking to add value to their assets by putting more money into them. This is often in the form of an addition or renovation. Just to be clear, a renovation, or remodel, is a change in the existing structure and it modifies the function of the space whereas an addition, is just what it implies; adding on to an existing structure.

Both require building permits, along with demolition, drywalling, plaster, and carpentry amongst other things but the latter will entail less demolition. Homeowners will need to bring an architect and contractor on board to design the space and manage construction. Read this blog for the pros and cons of both.

Addition

If you’re leaning toward the add-on way, check out these pros and cons before making your decision.

Pros

They’re a true reflection of you. This is specifically true if you’ve bought an older house or one where the plan doesn’t really echo your requirements. By adding on, you’ll have a chance to get exactly what you want.
You can build an additional space that you can rent out to get a source of additional income.
Little to no demolition required and not too much in and out of your existing living space.

Cons

If you add square footage to the property, it can potentially increase the value of the house when you sell, but in this volatile market, there is no guarantee.
Adding more space comes with additional costs of living as well. You’ll need to pay more to heat or cool the house, possibly pay more property tax, and also dish out more for cleaning.
The constant noise and buzz of a building crew can get annoying, especially when there are delays or the project timelines go beyond what was expected.

Renovations

If you aren’t too keen on adding on space but want to remodel the existing structure, then these pros and cons are worth considering.

Pros

They’re a great way to turn your ideas into a reality. You may not love what the previous homeowners had created, so this could be a chance to redesign the space as per your liking.
If you’re renovating an old house, you get to incorporate the character of it whilst adding in a bit of your own personality. Older houses usually also have good bones and a solid foundation.

Cons

Can be dangerous if not done properly, causing flooding, an electrical fire or structural damage. It could also potentially release asbestos or lead into the environment.
You may need to move out temporarily.
If you decide to live at the property during renovation, there will likely be a lot of noise and disruption with the building crew going in and out multiple times a day.

Regardless of which way you decide to go, any residential realtor will tell you that a job done badly can actually end up costing you more in the long run.

If you’re looking for a real estate agent in Rockwall, TX, us for a free consultation. Our team of experienced real estate brokers can help you buy or find homes for sale.