There’s plenty you should consider when budgeting for your next custom deck building project. It’s important to properly budget for the design of the deck, the materials it will be out of, as well as what you can actually afford. On average, a custom-built deck costs $35 per square foot. However, just like any other renovation project, it’s important to get rates from local contractors in the area. However, to help you make the most of your money, here are a few tips to keep in mind when budgeting for your next custom-build deck.
Added Value to Your Home
Although a new deck attached to your home is meant to increase your outdoor living space, but it can also add value to your home when you put it on the real estate market. According to the Hanley Wood’s Remodeling magazine, a deck can boost your home’s value when you sell it and is one of the most popular ways to improve the value of your home. Although midrange wood decks can cost upwards of $10,000, it has a 70 percent return on investment when you sell your home, which speaks volumes. Current, a composite deck costs on average $15,500, but has nearly a 63 percent return on investment. Overall, a custom-built deck can seriously put some more cash in your wallet when it comes time to go about selling your home.
You may need to pay more in property taxes after you build a new deck or renovate an old one. Typically, your town’s building department will inspect your house during construction. If your new addition meets all restrictions and building codes, you will be given a note that states your deck passed inspection. Then, a tax assessor will come to your house to perform a visual inspection. They will inform you of any increase in your property taxes and the reasoning behind the decision. It can be hard to estimate your new tax rate before construction is complete. However, if you want an estimate so you can begin planning, you can reach out to your town’s tax assessor who can give you a quote.
Additional Insurance Costs
Before building your deck, double check that it is covered by your homeowners’ insurance. You should also ask your contractor for a Certificate of Insurance. This will provide proof that any workers performing construction on your house are covered by the contractor’s insurance, which means you won’t be liable if anyone gets injured while on your property. Do not hire a contractor who can’t provide you with a Certificate of Insurance. Instead, find a contractor who does have insurance so you are not held responsible for any injuries that may occur.
After the deck is completed, you will receive a Certificate of Occupancy from your contractor issued by your town. Only then should you speak with your homeowners’ insurance provider and let them know how much money you spent building your new deck. This way, the insurance coverage can be tacked onto your existing policy. For example, let’s say the replacement value for your home is $200,000 and your deck cost $3,000. Your policy will increase to reflect the cost of replacing your deck. This is true of any new addition to your home, like a garage or room. Typically, the insurance cost per year is a set percentage per $1,000 of the amount spent on your deck. This, however, varies from state to state so talk to your insurance agent about the specific increase in your insurance costs.
There are a lot of factors you will need to plan for when building a new deck. This includes construction costs, taxes, and an increased insurance rate. However, with a little saving and budgeting, you will have your new deck in no time at all.