Remodeling A Basement: Worth Your Money?
Want to transform that unused basement into a livable space? But wondering is it even worth it?
The short answer is yes, if it is done right. A properly made basement not only adds extra square footage to enjoy but also has the potential to boost your home’s resale value.
If you’re lucky enough to have this bonus underground space, this guide will help you learn everything you need to know about renovating your unfinished basement.
How Much Value Does a Finished Basement Add?
In the US, finishing a basement will give you a return of 70-75% of your investment. That means if you spend $10,000 on enhancements, the value of your property will increase by about $7,000.
How much you recoup also depends on the area you live in. For instance, homes in the Pacific region have the biggest finished basement return on investment. Here, the average finished basement can get an ROI of 86%. On the other hand, finished Basements in New England have the lowest return on investment. In this region, the average ROI is 80%.
Ways a Finished Basement Adds Extra Value to Your Property
● Increases Buyer Attractiveness – A finished basement makes your home more appealing to buyers. Since the pandemic began, many buyers have been increasingly looking for homes that can accommodate office workspaces, gyms, and space for remote learners. A house with a finished basement fits that profile like never before.
● A Second Income – You can turn a finished basement into an income property, which will give you extra cash monthly. The rental income can be used to offset the costs of the mortgage.
● Recreational Space – If you don’t want to be a landlord, then you can turn the basement into a playroom, craft room, a home theatre, or even a basement bar.
● Extra Livable Space – Adding livable space in your basement will free up space upstairs when you have overnight guests. You can also use the finished space as a home office, storage room, or bathroom.
What is The Cost of Remodeling a Basement?
Converting an unfinished basement into a liveable space by remodeling your basement is a significant undertaking. But exactly how much does it cost to finish a basement? For a 400 to 1,500 square foot space, expect to spend around $20,000, which is the national average. Some spend as low as $3,000 and others as high as $80,000, depending on the size and style of the space.
The total amount will depend on several factors such as: type and quality of materials you use, the kind of space you want to create, the contractor labour rates, permits fees, and the furniture and decor you settle for.
Important Factors to Consider Before Remodelling
● The Value of a Finished Basement – If you are finishing in order to sell, enlist an experienced realtor to help you determine the ROI of the project. The expert will also help you figure out how to minimise the basement budget and still increase the home’s value.
● Budget – Decide how much money you are willing to invest in this project. Talk to an expert contractor to define what a good budget is and to learn what is doable within your price range.
● Local Building Code – There are certain laws associated with having a living space in your basement. You will need to research and meet all building codes in order to actually finish the basement. Your ceiling height can limit you if there is no headspace, and you may need to add an evacuation window.
● Structural Problems – If your basement is polluted with mold, has bad smells, water leaks, cracks on the walls, an unstable foundation, or other structural problems, you need to promptly take care of those issues before finishing it.
● Safety – Safety is important in your basement, so test it for mold and radon gas, have an escape door or window in case of fire and flooding, add ample lighting, and create safe access handrails. Wiring, plumbing, gas lines, and heating systems should also be safe.
A Finished Basement Will Give Your Property an Edge
Your basement doesn’t have to be dark and gloomy. In fact, finishing your basement is a great investment that can enhance your property’s value while also making it a seamless extension of your home.
You can turn the unused space into an income property, guest bedroom, home office, bathroom, or play area. If completed at the same quality as the upper levels of your home, it will boost your home’s marketability to potential buyers and even help you fetch more when you sell.
Remember that finishing a basement is a job best left to the professionals.
Consult an experienced contractor who has completed projects similar to what you need.