Get matched with top home builders in Columbus Junction, IA

Contractors may require a down payment before they begin a project—especially for those that require a lot of materials. Check with your contractor to see how much they require up front before signing a contract, but they should not ask for more than 50%. Never pay in full before work begins.

Most contractors aim for about a 20% profit on a job, leaving themselves room for unexpected expenses or delays. After accounting for materials, labor, and insurance, the profit margin for most contractors is between 10% and 20%. Fluctuating costs of materials and labor affect the ultimate percentage.

A guest house is not a bump-out addition. A bump-out addition is a small home addition built onto a preexisting room of your house, like a bay window or walk-in closet. While you can do a bump-out addition to a constructed guest house, a guest is not a bump-out addition. Other common bump-out additions are extra living room seating, space for a bathtub in a bathroom, and extra cupboard space in a kitchen. 

Renovating or remodeling an existing structure is usually less expensive than the cost to build a new house. That’s because you can save on the costs of new building materials, laying a foundation, framing the entire building, and installing new materials and utilities throughout the house. However, if a home is in very poor condition or is incredibly old, you could spend more on upgrades and restoration compared to building from scratch.