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Home Building questions, answered by experts

Local regulations dictate how big an ADU can be, and there may also be restrictions on the percentage of the main residence’s square footage an ADU can have. In most cases, an ADU must be smaller than the main residence, but check with your local building authority to confirm restrictions on ADU size.

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.

The Columbus Junction, IA homeowners’ guide to home building services

From average costs to expert advice, get all the answers you need to get your job done.