Hidden Home Addition Costs to Know About Before You Start

Some costs of a room addition are easy to identify: You know there will be fees for permits, the price of labor and material, and charges for change orders. But there are other expenses to factor in to the total cost of your new room. Here’s a list of the most common costs that may have an impact on your budget:


Homeowner’s insurance

Not only will your annual insurance premiums go up, but you’ll want them to. Adequate insurance on your home’s new space means peace of mind (and replacement funds) should there be an event that damages your addition.


Property taxes

It’s likely that you’ll pay higher property taxes on the additional space. The information for the tax assessor will come from the value that’s shown on the application for your initial building permit. Note that it’s not necessarily the additional square footage, but rather the assessed value of the new space. You’ll see the higher taxes in the valuation of your house for the next tax year.



If you’re paying for your new room with a loan, include the associated origination and processing fees, plus any interest you’ll be paying. You can, of course, reduce these costs by applying a larger downpayment. Make sure to factor in the true cost of interest over the full life of your loan.


Furnishings and decor

This category is easily overlooked, but your total budget should include the furniture, window coverings and decor that you’ll need in your room addition.



Depending upon the type of room you add and its location, you may also have costs to replace and/or remove trees, shrubs and grass. Construction work itself can be the cause of these costs, since it usually involves heavy machinery and a lot of foot traffic across your yard or around your house.


Disposal of waste and cleanup

Your budget will need to include the costs of the removal of construction debris and waste, as well as fees for a final cleanup of your property. Check bids from room addition contractors carefully for details on the contractor’s fees for managing debris removal, the extent of their responsibility for this, and how and by whom containers will be paid for. Reviewing the contract is also a good time to check on local ordinances that pertain to waste disposal.


Plan your room addition with the help of Contractor Connection.

With a five-year warranty on workmanship and top-quality room addition contractors who’ve already been vetted for the proper credentials and qualifications, Contractor Connection makes finding a trustworthy contractor easy. For your free, no-obligation estimate, simply enter your ZIP code at the top of the page and a room addition contractor will be in touch in just 24 hours.

Categories: Room Additions


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