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As a custom home builder and remodeler, one of the most common questions I get is, “Should I remodel my current home, or build a new custom home?”
The answer to this really depends on your specific circumstances, but I’ll take a few liberties here and give you some insider advice from my perspective. I’ll break this out based on hypothetical scenarios that can impact your decision.
Our Current House is Too Small
Kids have a unique gift of taking up whatever space they are given. Anyone with kids knows what I’m talking about–somehow they can make the same finite amount of toys take up as much space as the house permits. The question here (all jokes aside), however, is whether it is better to do an addition to the home or build a new house.
First, the financial implications must be considered. Right now, with the costs of lots in Kuna and surrounding areas, most clients are likely better off financially by doing an addition than building a new house. (Sure, there is the probability that with your current equity you could put a huge down-payment on the new home, but the costs of lots coupled with increased construction costs likely will absorb that equity quicker than you think).
Beyond the financial considerations, there are some general constraints on whether or not an addition is an option for you. Some lots are small and with zoning regulations and setback requirements, there is no room to do an addition. Other situations where the current layout of the home is not conducive to an addition might eliminate an addition as a viable option. The best way to determine this is by having a reputable builder, like Ivory Construction, look at your home, lot, and layout to determine if an addition is the right option for your situation.
I recently looked at
a house in Kuna where the client wanted us to do an addition to the kitchen. However, with the current layout of the house, and the lot size, doing an addition wasn’t really a feasible option. By the time we reconfigured the interior layout to make the addition flow with the house, they might as well have built a new home. Alternatively, we just finished an addition on another house in Eagle that added significantly to the size of the kitchen and overall flow of the house for a fraction of what it would have cost to build a custom home. A good builder can do more than just bid your project–he or she can help guide you to the best solution for your situation.
A Remodel will be Expensive, Should I just Build a New Home?
This issue tends to be the common predicament most of my clients find themselves in. Construction costs are higher than they’ve ever been, and the cost per square foot to do a remodel/addition, can sometimes be higher than the cost per square foot to build new. However, there are a few points to consider when looking at just the cost per square foot.
First, most remodels are for the more expensive parts of the house (kitchens, bathrooms, and master bedrooms). Thus, if we look at it as an “apples-to-apples” comparison of the cost per square foot of new construction versus remodeling or adding on, the price difference is less drastic.
Second, in most situations, the cost of the home our clients are currently in (as in their cost, not current market value), is significantly below current market rates to build a comparable home in the current economy. If we do a remodel or an addition (or both) that costs an additional $200,000-$300,000, it might be helpful to average that cost out over the total square footage of the home to help you decide if building new or remodeling is better.
For example: Your current home 4,000 sqft home cost you $600,000 when you initially purchased it. An addition and remodel of the existing space would add 600 sqft to the structure and cost $290,000. This means your total cost for the home would be $890,000. Your cost per square foot with the new addition would be $193/sqft. Most of the custom homes that I build come in between $200-$250 per square foot. Thus, if you do an addition and remodel on the existing house, you are probably still cheaper than building a new home. Also, with respect to “averaging” the cost per square foot of the home, keep in mind that your initial purchase price of $600,000 included the house and the lot. If you were to build a custom home, even with the most basic finishes, you would look at a minimum of $175/sqft–that is just the house. The lot would be separate from that cost, and small lots in the Treasure Valley start at around $100,000.
I Don’t Want to Live in a Construction Project, so We Should Build a New House
This is a pain point for anyone considering a construction project of any scope on their home. Living through a basic kitchen remodel can feel like a marathon. Ivory Construction tries to distinguish ourselves in this realm. First, we coordinate up front with you on the schedule and what parts of the house we will be working in. Second, for large-scale remodels, we have connections to get our clients into short-term rentals during the construction. In some cases, we have a home specifically available for our clients to stay in during construction. This helps eliminate the headache of project delays that can impact your move-in date. (This applies to new construction as well as remodels).
Building a new house simply because you don’t want to have the inconvenience of living in a remodel is probably not the best decision. Ivory Construction specializes in large-scale remodels, and we find solutions for our clients to make the process as painless as possible.
So Should I Remodel/Add On, or Build New
I’m a huge fan of making existing homes work for your family and situation. With a few exceptions, Ivory Construction can make a remodel/addition to your “forever home” just as much as we can with a custom home.
In some cases building a new home is the only option. However, we have saved clients significant time and money by doing remodels on their existing homes, providing them with a place to make memories for years to come and the peace of mind that their remodeled home is built to a standard equal to what we would do for a custom home.
If you are trying to determine if you should remodel or build a custom home, call Ivory Construction! We can help point you in the right direction for your needs and specific project constraints.
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