One of the most important parts of the modern economy is the value we accrue in our houses. For the overwhelming majority of Americans, a home will be the largest and most important investment that they ever make. However, it is a mistake to think of it as a static asset. Not only will the value fluctuate with both the local and national housing markets and economy, but the changes you make during your ownership will drastically affect the final value of the house. Whether or not you take good care of your house will naturally have a massive consequence. But you also have the option to renovate and upgrade your home. From simple flooring and plumbing changes, to massive projects adding hundreds or even thousands of square feet, renovations have the potential to add substantial value to your home. However, here are a few things to keep in mind when looking to give your home an addition.

When looking to make an addition to your home, the first thing to do is to decide on a budget. Is it going to be a ten-thousand-dollar addition? This would be a pretty small addition that might not add any square footage. In this case, you can likely finance the addition fairly easily, and should focus on things that will give the house a nicer appearance. However, if you are looking to do a substantial addition, such as a new floor or extra rooms, you will likely need to acquire financing. One thing that will help you acquire financing will be if you can show that the addition will have a substantial impact on the value of your house.

Secondly, when looking to make an addition it is very important that you use reputable and experienced contractors. One of the worst mistakes that homeowners can make is to attempt construction or related work that they are not qualified for. Attempting this yourself or hiring an inexperienced contractor could obviously leave you with substandard work, but could also have other unexpected consequences. If the work is not properly permitted, you could end up in heaps of regulatory trouble. Unpermitted work could set you up for costly inspections, which may involve redoing much of the original work. If the house has unpermitted electrical work that does not meet building code, this could be used by your insurance company to deny a claim. So take the time and make sure that the entire process is done by a reputable contractor who will know all of the local regulations and how to keep things done correctly.