Basement remodeling or finishing a basement may seem an unexciting project. Surprisingly it is one of the best ways of adding valuable space to your home and making a financial return too.
If you have considered finishing your basement space before selling here is the case for doing it.
Read on to learn why you should invest in finishing a basement.
What Does Finishing a Basement Mean?
We are not going to get too technical here. Speak to a professional realtor for formal definitions. In general, for a living space to be regarded as finished, it must be suitable for year-round living, directly accessible from the rest of the living area and have 7 feet high ceilings.
To make a basement a fully usable living space you may need to consider insulation, flooring, plumbing and electrical installation. Depending on the current level of finish this may be a large or small job.
What are the benefits of finishing a basement before selling?
Cost Effective Home Improvement
Adding square footage to your home may not be easy to do. The additional cost of adding to the footprint of your home could be very high. The addition of usable square footage within the home is cheap by comparison.
Extending the footprint of the house may not be possible due to zoning restrictions making finishing your basement the only way of adding space.
The addition of this space is not only about the square footage number. It is a very tangible addition to add quality of life to the people living in the home.
Return on Home Improvement Investment
According to the annual cost vs value report by Remodeling magazine, a basement re-model returns about 70% on an average $71,115 investment. Given that this is an average many of the more savvy home improvers will be getting a greater return.
You should consider the return on investment in terms of added space, use, market value and attractiveness to buyers.
One of the mistakes people make when selling a house is trying to hide problems. If your basement is a problem it will be discovered during the buyers’ inspection. A problem basement could be a turn-off to some buyers.
Add a Bedroom or Bathroom
Finishing your basement can mean adding to the size of your home but what you do with that space is important too. An additional bedroom or bathroom can make a significant difference to the attractiveness of your home to a buyer.
There are costs associated with adding both bedrooms and bathrooms. You must check local requirements for definitions of a bedroom and required forms of egress.
Other Basement Ideas
Basements can be used for a whole range of other purposes. These options include:
- Home office
- Home entertainment room
- Guest room
Many of these options can be attractive without limiting future changes, a plus for a potential buyer.
Buyers often don’t have high expectations for the build quality in a basement. If you have a low-cost finish compared to other parts of the house this can still be a useful room.
Functional space in the basement with suitable heating, lighting, and flooring is better than an unfinished space.
The cost-benefit analysis for your basement will be unique to you. You may find you have a clear case for finishing your basement. Discuss this with your realtor for their view on the marketing benefits.
To learn more or talk to a realtor click here.