Essential Budgeting Tips to Know Before Building a Deck

Decks are less expensive than most other home additions, and they come with a big bonus: they may make your home more marketable. Whether you’re looking to add a new deck or improve your existing design, upgrading your home with a deck will provide the perfect place for relaxing outdoors with friends and family. But first, you should know the average cost to build a deck. These tips from Better Homes and Gardens will help you build an adequate remodeling budget, whether you plan to build a deck yourself or choose to find an experienced contractor for the job. Here’s a look at the average cost to build a deck, plus essential budgeting steps to take before digging in.

How Much Does It Cost to Build a Deck?

For basic deck designs using the least expensive lumber, you can expect to pay from about $8 to $10 per square foot of deck area if you do the work yourself or pay about $25 per square foot if the material is professionally installed.

When you consider that hiring out the job will perhaps double or likely triple your costs, a do-it-yourself deck can look attractive. In fact, the economy of a do-it-yourself deck might buy you a larger design or higher-quality materials. These examples show you the DIY vs. contractor price for a variety of deck sizes and styles.

• 8×8-foot Raised Deck: Doing it yourself, you can build an 8×8-foot raised deck attached to your home out of treated lumber for about $1,600 in materials. Changing the decking material to red cedar would raise the cost by approximately $200. Having a contractor build it for you raises the price to $3,200-$4,800.
• 12×16-foot Raised Deck: You could build a 12×16-foot treated-lumber raised deck with stairs, for about $2,500 in materials. Hiring someone to do the work for you brings your total cost to $5,000-$7,500. For that same $5,000 you might spend on a professionally installed 12×16-foot deck, you could build a deck almost twice the size at 18×20-foot if you build it yourself.
• 16×16-foot Raised Deck: You can buy the materials for a 16×16-foot (256 square foot) deck using composite decking materials for about $4,500-$5,500 and build it yourself. A contractor would charge closer to $10,000-$15,000 to construct a deck of this kind.

Actual prices in your area may vary. Any extra features, such as shade structures, built-in benches, or planters, require additional materials and add to the cost per square foot. If you’re not a do-it-yourselfer or you simply do not have the time to devote to building your own deck, concentrate on designing the deck you want, then finding a builder who can work within your budget.

How to Hire a Contractor

Choosing the right contractor is an important first step in the deck planning process. You should get at least three written estimates from contractors. Choosing a local contractor is best because they’re easier to contact if problems arise with the work in the future and they’re more likely to be familiar with building codes in your area. Be sure to check their references and examples of their past work to make sure they’ll provide quality workmanship and customer service. Finally, check to make sure the contractor is insured and bonded by asking the contractor for a certificate of insurance. You can verify the coverage and confirm that the policy is still in effect by contacting the insurance company directly.

Increase Your Home’s Resale Value

Remember, when factoring the costs of building a deck, off-set that with the value having one adds to your home.  According to Remodeling magazine’s 2020 cost vs. value report, on average, a homeowner can recoup around 67% of the cost of a composite deck or almost 72% of the cost of a wood deck. Why? Because home buyers are willing to pay top dollar to own a deck. According to the National Association of Realtors’ 2018 Remodeling Impact Report, a new wood deck ranks fifth among the top 13 outdoor features that appeal to homebuyers.

Increase Your Happiness

The same study also reports that homeowners experience increased happiness after their new deck is completed. After remodeling, 81% said they had a greater desire to be home since completing the project, 74% had an increased sense of enjoyment at home, and 77% felt a major sense of accomplishment.

Prepare for a Possible Tax Increase

On the down side, when considering your deck building costs, you should factor in that your property tax bill may increase once the project is complete. According to IRS guidelines, if you make an improvement that adds value to your home (like a deck), you’ll increase the amount of property taxes you pay. The actual increase amount depends on where you live and the value of the deck. When planning your new deck, check with your local tax assessor’s office to prevent an unplanned expense.

Plan for Added Insurance Costs

Before construction begins on your new deck, don’t forget to contact your insurance agent to make sure your deck is covered by your homeowners’ insurance. After your deck is completed and you have a certificate of occupancy, let your insurance provider know how much the new deck cost to build so that additional coverage can be added to your insurance policy.

How to Finance a Deck

Now that you know the costs involved to build your deck, how will you finance it? While you might be inclined to use your credit card or tap into your savings because it feels familiar, a personal loan might be an easier and more affordable way to fund your new deck. Choose a lender who will work with you, listen to your situation, and do what’s right for you both now and down the road. Consider a fixed rate and flexible repayment terms from Discover Personal Loans to allow you to plan your finances and know when you’ll pay off your loan. You can preview your rate and monthly payment without impacting your credit score.

Plan for the Unexpected

Finally, when planning for deck expenses, remember to include a contingency fund in your total renovation budget. You might need more than your estimate to cover unexpected costs that come up throughout your project. Some personal loan products like Discover Personal Loans make the loan process extremely easy with no lengthy process or collateral required, plus they to let you borrow up to $35,000 to fund a home repair or remodel project.

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