How Much Value Does a Finished Basement Add to Your Home?
Investing In Your Space
Many Americans are sitting on top of a huge untapped resource: their unfinished basement! Finished basements can add an immense amount of value to your home – both in terms of how much your property could appraise for and how much the lives of your loved ones can be improved. There are many benefits to having a finished basement in your home. Let’s take a closer look at how the value adds up for those considering a basement renovation.
What Factors Impact ROI?
According to HomeAdvisor, the average basement remodel can give you up to a 70% return on investment (ROI). In general, homes with finished basements usually receive higher appraisals in comparison to those without, but there are other factors that affect how much of a value it will be worth.
Here are some of the main factors that come into play when it comes to the overall value of your home with a finished basement:
Local Real Estate Market
You could have a beautiful home that is newly renovated in a great neighborhood, but if your local real estate market is going through a rough patch it will impact the rate at which your home is valued. This is completely out of your control, but it is something to consider when starting a major home renovation if you are looking to sell.
The city you live in may also impact how much your finished basement is worth. For example, in cities like Washington D.C, St. Louis, or Boston finished basements are very common and square footage is a premium. When in a competitive market where having a finished basement is common will likely increase your ROI.
Material Selection
When you are remodeling a basement it’s important to remember that it is additional space and not the main living space. It’s a premium to be able to update a basement and you should renovate it to fit your taste and lifestyle, but that doesn’t necessarily mean you have to splurge like a main space renovation.
Instead, you may opt for using more durable, reliable materials such as laminate or sheet vinyl flooring. This will save you money upfront while still raising your ROI.
Usability and Appeal
When finishing your basement it is important to have a plan on what it is you want to get out of your space. Your vision for this finished basement space is an important factor when deciding whether this is the right move for your family. Some of the most common ways to transform your space include adding:
- Home office
- Home theater
- Bar
- Guest room
- In-law suite
- Home gym
- Children’s play area
- Game room
- Craft studio
Whether it’s a home office, home theater, guest suite, extra living space, or a combination of things, it should be a space that you can utilize. When a space is open, with natural lighting, and can be a space that is enjoyable to be in, your ROI will increase.
Are You Ready to Renovate?
As exciting as finishing a basement can be, remember this is a major construction project. A building permit is required. Throughout the process, electrical, plumbing, energy, drywall hanging, framing, and windows are inspected to meet code.
If you are ready to start building the basement of your dreams, contact Basements & Bars! We are a team of experts that will work with you every step of the basement finishing process to turn your vision into reality.
For more information or to set up your free consultation, visit our website or call (314)-550-9160.