Building out is cheaper than building up — Adding a second story requires reinforcing the existing foundation and costs 20–40% more per sqft than a ground-floor addition.
Budget 10–20% for surprises — Hidden issues (rotted sill plates, outdated wiring, unexpected plumbing) are found in 80% of additions. Do not plan a tight budget.
An ADU can pay for itself — An in-law suite costing $80,000–$150,000 can generate $12,000–$24,000/year in rental income — paid back in 5–10 years in most markets.
Hire an architect before a contractor — A $2,000–$5,000 architectural plan saves far more in contractor errors and ensures your addition matches your home's structure and style.