Increased value of home?

Question

I'm going to add an addition in my home (14x22) exact size as my living room making my old living room the dining and sitting room. this well known carpenter will do it for $18,000 (includes doing drywall, shingle, 2 windows, door, tile,Fireplace and adding pergola in front yard) I thought that was a very good price He told me this addition increases my home value by $40,000 Is this right

Answer 1

A very good price.  The increase in home value depends on location and what your neighbors homes sell for.  The big thing is it does increase the value and you get to enjoy.  Your enjoyment of the new addition is really all that matters.

Answer 2

Depends on the location and the rest of your house, and the housing market in your neighbor hood.  

But if you have 308sq. ft x $90 is $27,720 seems reasonable.

$18,000 seems very good, so I trust you have seen his work and know what windows and door you are getting.