Will my addition add value to my home?
How to Calculate the Value a Home Addition Adds to Your Property
If you're considering a home addition — whether it's a bonus room over the garage, an expanded kitchen, or a screened-in porch—you’re probably asking: How much value will this add to my home? A well-planned addition can be a smart investment—but calculating the potential return requires a little research and local insight. Here's how to estimate the value your addition could bring to your property.
1. Know the Purpose of Your Addition
The first step is clarifying what your addition is meant to accomplish:
Extra square footage (like a family room, sunroom, or media room)
Practical upgrades (such as an additional bathroom or laundry area)
Functional flexibility (like a home office or guest suite)
Added resale appeal (e.g., outdoor living space, mudroom, or screened porch)
Each type of addition impacts value differently, and what appeals to buyers in Franklin might not be the same as other markets.
2. Look at Local Comps in Williamson County
Franklin’s real estate values can vary by neighborhood—from charming historic homes in downtown to new construction in Westhaven or Berry Farms. Here's how to estimate value with comps:
Search recent sales in your neighborhood on Zillow, Redfin, or through a local agent.
Compare homes with your current specs to those with your planned upgrades.
Focus on properties sold in the last 6–12 months for the most accurate market picture.
Example: If most 3-bedroom homes in Fieldstone Farms are selling for $700,000 and similar 4-bedroom homes are going for $775,000, that extra bedroom may increase your value by $75,000.
3. Calculate Cost vs. Value
Use this basic formula:
Added Value = Resale Value After Addition – Current Home Value
ROI = (Added Value ÷ Cost of Addition) × 100
Say your screened-in porch costs $35,000 and adds $25,000 in resale value:
Added Value = $25,000
ROI = ($25,000 ÷ $35,000) × 100 = 71%
This means you'd recoup about 71% of the project cost in your home’s market value.
4. Review Regional ROI Data
According to the Cost vs. Value Report (specific to the South Atlantic region, which includes Tennessee), here are some average ROIs:
Addition TypeAvg. ROI in RegionPrimary Suite Addition55–60%Bathroom Addition53–59%Kitchen Expansion70–80%Deck or Porch Addition60–75%Garage Addition62–68%
In Franklin's seller-friendly market, well-executed additions—especially those that match neighborhood expectations—can yield even higher returns.
5. Use Local Price Per Square Foot
In 2025, the average price per square foot in Franklin ranges from $250 to $400, depending on the neighborhood and property condition. To estimate value this way:
Value Increase = Price per Sq Ft × Size of Addition
Example:
Addition = 300 sq ft
Local rate = $300/sq ft
Estimated added value = $90,000
This can help you set realistic expectations, especially for additions like bonus rooms or expanded living areas.
6. Talk to a Local Real Estate or Appraisal Expert
For the most accurate projection, we recommend talking to a local professional:
A Franklin-based Realtor can show you relevant comps and buyer trends.
A licensed appraiser can offer an objective opinion on how your addition affects property value.
A local builder or contractor (like Vision Construction) can give you cost and design guidance with resale in mind.
7. Design Quality Matters in Franklin
Franklin buyers often value quality craftsmanship, character, and curb appeal. Poorly designed or out-of-place additions may reduce your ROI or turn off potential buyers.
To ensure the best return:
Match exterior materials and architectural style.
Keep floor plans open and functional.
Use high-quality finishes that reflect local buyer preferences (think quartz countertops, hardwoods, and custom trim).
Final Thoughts
Franklin is a thriving, high-demand market, and a thoughtfully planned home addition can increase both your enjoyment of the space and your property’s value. Use comps, ROI calculations, and expert guidance to make the most of your investment—and don’t overlook the design details that Franklin buyers love.
Thinking about an addition in Franklin, TN?
We’d love to help you evaluate your options. Contact Vision Construction for a local consultation and custom quote—we’ll help you plan smart from the start.
