How To Keep Home Addition Costs Low

Whenever people first look at completing a home addition, they often are surprised to see the magnitude of total project costs. A home addition in Toronto (based on our own pricing and budgeting in 2022/2023) can easily range anywhere from $400 000 – $800 000 (taxes included), depending on:

• The amount of the existing house being renovated

• How much additional square footage is being created

• What the existing conditions of the house are

• What the starting square footage of the house is.

Since the range provided above is so variable it is always recommended to submit your home’s property information to us so we can start the process of giving you a budget for your project. There are many different types of homes in Toronto and many different client needs, which is why we created our renovation consultation service. By completing our renovation consultation will be able to get a better idea of what your realistic costs will be for your project BEFORE you commit to completing the design and permitting. We would rather be honest upfront and let you wait to do the project properly than string people along.

Through our experience pricing out home addition projects in Toronto, we have narrowed down the key areas you should focus on to keep costs lower for your project. Take a look below and if you have any additional questions we welcome you to reach out!

Home Addition Cost Saving Ideas

Cost saving Idea 1: Involve a Home Builder or General Contractor in the design phase

This idea is simple but powerful. Why wouldn’t you try to involve a Home Addition Contractor in the design phase if they are the ones who will be pricing out the project? The earlier in the design process they can get involved, the sooner you can pivot away from costly design details. The fact of the matter is your architect or designer working with you on your permit submission drawings will not know the costs of your project from beginning to end, no matter how handy they are. So get an experienced home addition team with the estimating and budgeting experience involved in the design phase as soon as possible!

Cost saving Idea #2: Top-up versus extension

There are essentially two ways you can add more space to your existing home – horizontally or vertically. If you have the ability to just build on top (vertical) of your existing home, that will trim the budget versus doing the same amount of square footage with an extension (horizontal). The reason for this has to do with the additional steps involved in completing an extension, you have to create a new foundation that usually comes with intensive excavation and foundation prepwork. Extensions being included as part of a home addition are not always avoidable depending on your needs, but it is something to consider. There are other ways to maximize a top-up addition project, like completing a cantilever, that can be explored versus completing an extension as well.

The only exception to this rule is if you are completing underpinning work in your basement, there may be some efficiencies that come with completing a rear extension in this scenario due to the ability to machine dig the basement versus a manual dig. This is on a case-by-case basis so reach out to us to discuss.

Cost saving Idea #3: Keep existing brick cladding for main level intact and Exterior finishes

If you take a look at our page that goes into detail about the different types of home additions you will see a before and after picture of one of our home addition projects that maintained the existing brick on most of the main level of the home (which started as a bungalow). We were able to get a brick match for the second level and the outcome can speak for itself. The exterior finishing costs for this were substantially reduced because less surface area was affected.

Even if you are planning on recladding everywhere, it is important to use materials that are not super costly, and work with both your Designer and General Contractor to come up with a finish that does not break the bank.

Cost Saving Idea #4: Basement refinishing and Renovations

Many times when people are planning substantial renovations and home addition projects, they try to get everything done at once. There are certain benefits to doing it this way, but if you are trying to be cost-conscious with your home addition it would be a good idea to reduce the overall square footage of the existing house being renovated. An easy way to do this is to remove any basement refinishing from your home addition scope, it will allow you to focus on your needs of why you are doing the home addition in the first place and can always be done after in a secondary project to the home.

We have recommended this countless times to our clients and will continue to do so to help them save money.

Cost-saving idea #5: Salvaging existing HVAC equipment

If you have recently invested in a furnace, air conditioner, or hot water system, these items can easily be reused for home additions, as long as they are sized properly for the new square footage and heat loss of the home.

During the design phase you will need to obtain an HVAC design that will give a heat loss calculation for sizing your furnace and AC systems. If the BTU/hr (for your furnace) and tonnage (of your air conditioner) is higher than the numbers listed you should be able to salvage them.

Cost Saving idea #6: Salvaging finishes from your existing home

This is probably an unpopular opinion across the board for many General Contractors, but with the rise of the circular economy in residential construction it is worth noting. If there is anything in your existing home that you are looking to salvage (whether that be kitchen cabinets, door handles, lighting, doors, etc.) you should make sure you can allocate some time to coordinate getting them safely removed from the home to be either reused in your new home or sold.

Just note that if you are planning on reusing fixtures that the onus will be on you to make sure they are stored safely and have all of the hardware needed to be reinstalled.

We have helped clients create a section of their scope that includes salvaging with great success, but need to be some level of involvement from the client in order to make it happen.

Cost Saving Idea #7: Plumbing Fixture locations

When designing your home it is important to note that the closer plumbing fixtures are to each other (both horizontally and vertically) the more efficient the plumbing work will be. For example, if there is a way to have a common wall between your ensuite bathroom and second bathroom on your second storey addition, then you should try to make that work. Even better, if the bathrooms are located above the existing plumbing stack for the home it will make a plumber’s job way less labour intensive.

Cost Saving Idea #8: Sourcing your own finishes

This is something we allow all of our clients to do, and it saves them quite a bit of money because we are not charging extra to source finishes on their behalf (which other General Contractors and Home Builders do). We pass along any contractor discounts to our clients with our preferred list of vendors, which allows them to save even more money. The dual benefit of this is it allows the clients to feel more involved in the home addition process.

Cost Saving Idea #9: Completing Portions of the project yourself (DIY)

Many times our more handy clients ask us if they can take on portions of the project that they have prior experience with. This has included tiling, trim/door installations, flooring, and painting. We understand that labour is not cheap with many trades, so for the clients that have the time, experience, and patience this is a quick way to save a bunch of money.

Just note that we only allow our clients to take on work AFTER the Drywall Finishing stage, any work before will need to be completed by BVM-managed subcontractors. This is to prevent any delays in the work and to ensure quality behind the walls.

Cost Saving Idea #10: Reduce the Amount of Tiled surfaces

The cost to supply and install tile can range between $20-30 per square foot, whereas with hardwood you would be around the $10-15 per square foot range. Compare that to vinyl (which would come in around $6-8 per square foot) and your savings from swapping out your finished flooring material can be substantial!

Cost Saving Idea #11: Trusses versus hand-framed roofs

Lumber is an obviously expensive line item nowadays with home additions and home building projects across Toronto, but so can the labour portion of framing if you are not careful. The one thing you can do with the lumber line item that can save you money is designing the roof system so that trusses can be installed, versus having to hand frame the roof.

Cost Saving Idea #12: Reduce or remove Steel beams

This is not always avoidable depending on your design, but if you care a lot about costs it would be best to have your designer or architect design your home addition with the intention of reducing or avoiding steel beams wherever possible.

Conclusion

These are just some of the more popular ideas that we have come up with clients and designers to reduce the overall cost of a home addition project during the design phase. We always recommend getting ourselves involved during the design process, it is a bunch of work but is worth it for us and the client.

Before you get to the design phase, make sure you get in contact with a reputable General Contractor that will be able to help get you a representative budget so you can make sure you can afford the work before spending money on a design you can’t afford. Better yet, you can also find out if your home is a good candidate for a home addition by reading our blog on the topic.

About BVM COntracting

BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations (kitchen renovations, bathroom renovations, basement renovations, full interior renovations, home additions, lot severances, and new home construction). Our goal is to help guide our clients through the process of renovating their home, from concept to completion.

Further than providing General Contracting and Project Management for major home renovations, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.

To learn more about our offering by visiting our services page.