Appraisers and banks never rely on average cost per square foot. Here is what you do. Hire an appraiser to appraise your home â€œas isâ€ or as it stands now. If you have a refinance appraisal within the last three months, this may work too.
Now get another appraisal as if all of the additions and improvements have been completed. Compare the values before you begin construction.
It might cost you $600 to $800 to do this, but this will be priceless.
This will tell you if you should add more square footage and how much money you may lose and you can compare that with selling your home and buying a newer home with more square footage.
Most of the time, the cost of the remodel and improvements do not even come close to paying for themselves in my market area.
Secondly, when it comes time to appraise the home, you may have created a non-conforming home and depending on the area, this may increase or decrease your home value. One may pull the value up, while the other may pull the value down.
In your area, this might be the best thing to do or this might add significant value, but donâ€™t guess on this one. Itâ€™s too expensive.