After years of living in the same house, all homeowners will eventually ask themselves if the home still satisfies their lifestyle. It may have fallen out of style or they could simply require more space. They then have to choose between moving to a new home and constructing an addition.
Showing your client the benefits of building an addition to help them make their decision can be extremely profitable, giving you a slice of the home improvement market pie, which was $349 billion in 2018.
When Building an Addition Is Better Than Buying a New Home
As a builder, there are several good reasons to encourage clients to think about building an addition rather than buying new. Here are some reasons your client should consider:
1. A Unique Expression of the Owner’s (and Your) Creativity
When a homeowner hires you to paint an old home’s walls, remodel the kitchen, or install new floors, you’re often retouching an existing design without making major changes to the structure. An addition allows you to guide the owner in designing a completely new space to their own specifications.
The National Association of the Remodeling Industry puts numbers to the intangible benefits homeowners enjoy by remodeling:
- 75% of homeowners who remodel show a greater desire to spend time at home
- 65% like the new look and functionality of the house more
- 56% claim to be “happy” and 39% say that they feel “satisfied” with the finished extension
- 77% say they feel a sense of accomplishment after building an addition
As a contractor, there are few projects that are as creatively satisfying as filling the blank slate that is a home addition.
2. More Space for Storage or New Interior Remodeling
Building an addition can add to the overall square footage in the form of a family room, kitchen, bathroom or bedroom. But sometimes a small addition can yield significant results. For instance, adding 2 or 3 feet to a bathroom or kitchen could allow for installation of larger appliances or fixtures. The additional space in an extended bathroom could also help make it accessible to an aging or disabled family member with mobility issues.
With half of the homes in the US being over 40 years old, many of them require an extension as part of modernization. No matter the specifics of the project, an addition provides space to add modern features that did not exist when the home was built.
3. Housing for Guests or Family Members
An expanding family doesn’t always mean a new baby. Many families have elderly relatives who move in to receive care as their abilities deteriorate. A survey by the Pew Research Center shows that millions of senior Americans now live in their adult children’s homes.
Additionally, a growing number of young adults are moving back into their parents’ homes. As of 2017, the US Census Bureau estimates that one-third of 18-34 year-olds in the U.S. live with their parents. That’s one of the highest ratios in recent memory, which means families require more space to accommodate children who have not yet left the nest.
4. Tax Advantages to Home Remodeling Loans
In financial terms, the ability to take out a home equity line of credit (HELOC) to finance the construction of an extension could prove beneficial. Presuming a homeowner has a credit score higher than 640, and a debt-to-income ratio lower than 40%, they can apply for a revolving credit line for a set period of up to 15 years.
This line of credit can be used for a range of purposes and, according to Forbes, can be applied to substantial home remodeling. The IRS lets a homeowner treat a home as a qualified house for up to 2 years (subject to criteria set up in the US Tax Cuts and Jobs Act). This would let the client claim tax deductions on the loan interest, reducing the overall cost of the construction loan.
Purchase Materials for Your Extension from the Experts
When home equity loans are made more affordable due to low interest rates, the nation experiences an orchestra of saws and hammers as workers start frantically building home additions. It’s one of the most expensive remodeling projects a homeowner can undertake. What’s more, unlike other home remodeling projects, building an addition cannot be easily undone.
Therefore, you should offer ideas, provide expert workmanship and use high-quality materials to justify the cost to your client and give them a home extension that will contribute to a long term increase in value of the home.
The Pro Gallery is a supplier that specializes in offering materials and fittings to contractors carrying out residential and commercial construction and remodeling jobs. Call our friendly home improvement professionals today at 717.982.6870 and come visit our showroom!