How to Improve the Value of Your Home by Adding an Addition

Add Value to Your Home with an Addition

We love our home improvement projects for the beauty they bring to our house and the boost in property value that they can generate. Harvard researchers estimate that Americans’ total spending on home remodeling projects might reach $430 billion by the second half of 2022.

One home remodeling project that is highly effective at improving the value of your property is adding an addition to your home. However, you might be wondering if any addition to your home will increase its value, or are there specific types of additions that are most successful at boosting the price of your home come selling time.

Here are just some of the additions that should improve the value of your home and, in some cases, significantly so.


3Rs Construction & Remodeling is here to help with any home addition projects as your trusted contractor in Salem, Oregon.

Bedroom Addition to Your Home Can Increase the Value

8 Room Additions That Will Add Value to Your Home

1) Adding a Bedroom

Adding a bedroom to your home can potentially add significant value to your property. In fact, your home value has the highest increase when you add a second or third bedroom. Adding up to a third bedroom can give you, on average, an increase in home value of approximately 6 percent for the median (middle-priced) home. That could translate into increasing your home’s value by more than $48,000. Real estate is currently selling between $350-$400 per foot.

“The number of bedrooms has a great impact on the sales price for smaller homes if your bedroom addition adds square footage,” says Gladys Blum, a real estate broker in Salem, Oregon.

You can approximate how much adding a bedroom will improve your home’s value by considering these four points:

  • Whether the new bedroom adds square footage
  • How the new bedroom affects your home’s layout
  • What local buyers are seeking
  • How many bedrooms are common in the homes in your community

Are you looking to add an addition to increase the value of your home? Contact 3Rs Construction & Remodeling, your local contractor today!

Adding on a Deck to Your House is a Great Investment

2) Adding a Deck

The return on your investment could be significant when it comes to adding a deck to your property. Why? Decks typically increase the living area, and building per square foot costs less than many other types of additions.

Adding a deck could help you recoup a significant amount of money after considering the costs associated with building a deck.

According to JLC Group’s magazine research report, adding a deck could produce a resale value of $10,000 if you plan to construct a wooden deck with a price tag of approximately $13,000. This means that you, as the homeowner, could recoup 75 percent of the total cost after you sell your home.

Adding a Porch Addition will add value to your home

3) Adding a Porch

Adding a porch will very likely add to your home’s value. You have a good chance of recouping a sizeable amount of the cost of constructing a porch.

Some sources report the typical return on investment for a porch addition is around 84 percent. It will depend on the real estate market in Salem or wherever you live and the timing of when you decide to sell your home. If you are lucky enough to have favorable real estate conditions and the value of homes in your neighborhood is similar to yours, you could recoup as much as 100 percent of the construction cost to build your porch.


Need help improving your home's value? Contact 3Rs Construction & Remodeling for a quote on a new addition today!

Adding a Mother-in-Law Suite

4) Adding a Mother-in-Law Suite

If you want to recoup the most value, adding an above-ground carriage house or ADU (additional dwelling unit) separate from the main house will get you there. In fact, you will add to your home’s overall appraisal value.

You will have a one-time cost of anywhere from $50,000 to $225,000 for constructing a mother-in-law suite. You might think about whether to build a mother-in-law suite that is detached from your house or attached, as well as consider what you want to put in this new living space. The city of Salem has recently started relaxing the restrictions on ADU's and has streamlined the permitting process to help make these popular additions more attractive.

A majority of home buyers consider a carriage house to be a desired feature.

Adding a Bathroom to Your Home Can Increase its Value

5) Adding a Bathroom

Did you know, according to data gathered by Opendoor, an online company that buys and sells residential real estate, that adding a bathroom to your home could increase its value by 5.7 percent?

In terms of defining what a bathroom addition is, it involves converting existing space to include a toilet, a shower, and a sink. This assumes no addition to the total square footage.

You will generate the optimal resale value by either adding an additional full bath, installing a half bath for guests or simply enhancing the look of an existing space.

Home Office Addition

6) Adding a Home Office

The number of people who work from home has increased significantly in recent years, by as much as 159 percent, according to figures released by Global Workspace Analytics. What’s more, in a survey conducted in 2021 by HomeLight – a real estate referral company, 60 percent of top real estate agents referred to a home office as the most important priority for buyers in their market. Buyers care more about a home office than they care about whether the home is move-in ready.

Data collected by HomeLight in 2020 indicates that a home office can bring in more than $10,000 in resale value. This number could be even greater now as many more Americans have traded the business office for working at home.


Get started on your home addition today! Contact 3Rs Construction & Remodeling in Salem, Oregon for a quote.

Add a Garage Addition to Your home to increase resale value

7)  Adding a Garage

You can count on building a garage to increase your home’s resale value. According to Pocket Sense, the average attached garage will give you an 81 percent return on your investment, which translates into a considerable increase in the resale value.

Adding a Second Story to Your Home

8) Adding a Second Story

Building up could dramatically increase your home’s curb appeal, but it will also substantially boost the value of your home. According to HomeAdvisor’s True Cost Guide, you can anticipate recouping a 65-percent return on your investment when you add a two-story addition.

How Adding Square Footage Can Raise Your Home’s Value

According to the National Association of Realtors, every 1,000 square feet added to your home increases its sale price by at least 30 percent. Adding a bathroom or bedroom to your home will generate the greatest return on investment based on this formula. In fact, bathroom additions provide the highest returns, according to Remodeling Magazine.

Look to 3Rs Construction & Remodeling for Your Next Home Addition

At 3Rs Construction & Remodeling, we know that many decisions must be made when planning a home addition. 3Rs Construction & Remodeling will walk you through the process. Knowing what’s on your must-have list and what your budget will allow is important.

From design to the finishing touches, 3Rs will make your new addition look like it was meant to be a part of your home. We take pride in using the time-proven techniques of blending sheetrock textures, paint colors, and proper lighting. We can even turn those unfinished attics, garages, and basements into practical living spaces.

Call us at (503) 363-1059, so we can get started on your new home addition in Salem, OR today!

Spread the love

About 3Rs Construction & Remodeling

We are your trusted Salem, Oregon general contractor with over 3 decades of experience in home repairs, additions, kitchen & bathroom remodels.