How a Finished Basement Can Increase Your Home’s Value
Does your home have an unused basement? Have you thought about redoing it, but it just keeps moving further and further down the to-do list? Well, it might be time to consider moving that basement finishing up to the top of the list.
Why? Research indicates that a finished basement can add significant value to your home. Even if you aren’t looking to sell anytime soon, finishing your home’s basement can go a long way towards increasing your home equity.
What the Research Says
A basement remodel can give you an ROI of around 70%. In other words, you can expect a return-on-investment of about seventy cents per every dollar spent.
While on paper that might seem like you lose 30% of your investment, that’s the wrong way to look at it. Finishing your basement adds additional, non-monetary value. Think about how a finished basement will enhance your quality of life. Moreover, think about how a finished basement could appeal to potential buyers in the future.
It’s important to understand that appraisers value basement square footage differently than above-ground square footage. They generally value the below-ground square footage at 70% of the value of the above-ground space. So, if the above-ground square foot is valued at $100 per square foot, the basement will be valued at around $70 per square foot.
A home with a finished basement will undoubtedly have more value than a home without one. Upgrading your basement will increase your home’s value by adding livable and functional square footage.
What’s the best way to ensure that your basement increases your home value?
It Starts with The Basics
First, if your basement is in total disrepair, you need to get it into the livable territory. Test the radon levels to make sure that your basement’s radon level isn’t elevated.
If there are any structural issues, consider redoing the framing and walls with insulated structural panels, because they’ll help make your basement more energy-efficient and durable. Also, be sure that your insulation is in great shape, and that you have proper drainage systems set up.
Then, install some high-quality lighting. Add a stair handrail to the stairs, and redo the floors with hard materials like tile.
If you’ve ever had a flooding issue or any apparent damage, handle that in the beginning. The goal with this first step is to take your basement from a dark and dingy area to a workable block of clay.
Once it’s safe, well lit, and easily accessible, you’ll have a much easier time deciding how you want to transform your basement.
Think About Function
The surefire way to add the most value is to keep it straightforward. Add a bedroom or two. Add a bathroom and a living area. While these aren’t the most exciting renovations, they’re the most ubiquitously appealing.
In other words, when you sell your home later, you’ll have a much easier time finding a buyer if you’ve converted your basement into a practical, livable space.
Now, if you’re planning to stay put for a while, and you’re more interested in creating a unique space. You have tons of different options.
Some popular basement ideas include:
- A Home Theater – Add a large screen, comfortable seats, and even add a snack station.
- A Recreation Space – This can be a space for children or adults. If it’s a playroom for kids, bring down plenty of toys and games, and leave tons of space for free play. If it’s a recreation space for adults, add a pool table, game systems, ping pong table, and more.
- Home Gym – You can turn your basement into a personal gym. Fill it with equipment. Line a wall with mirrors. You can even add a small rock wall.
- Wine Cellar – If you consider yourself a sommelier, you can transform your basement into an intricate wine cellar to display and store your favorite varieties.
- Mini-Bar – Make your basement an area to unwind and entertain. Build a large bar top complete with barstools. Use quartz for the counters and bar for easy maintenance. The colors of quartz countertops are varied, so you can find a quartz variety to fit your home bar’s motif. Add seating areas, and if you’re into it, consider adding a dance floor!
These are just a few ways you can utilize your finished basement. Get creative. If it’s about making your home more enjoyable for you, then pick a layout and function that will bring fulfillment for years to come.
Finish Your Basement to Add Value to Your Home
No matter which basement layout you choose, it will undoubtedly add value to your home. The only thing to do is determine how you want your basement to look and function, and get the renovation started!
About The Author: Matt Lee is the owner of the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.
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