Finishing your basement can give you a lot of value. Getting full basements will provide your family an additional functional room and can potentially give you great returns in the future. Want to know how much does finishing a basement adds value? Then keep reading and get everything you need to know how to renovate and entice potential buyers!
Does a finished basement add value to appraisal?
Yes, definitely! However, prices vary depending on the style and work done in your basement. Your finished basement adds to the functionality of your house, hence an added value to your appraisal. Studies show that you can get back up to 70% of your investment when you sell your home with a finished investment plus the amount of comfort that a finished basement can bring to your home and the people who live in it.
To help you get familiarized with terms, here are some key things that you need to know when getting an appraisal.
- Above grade – pertains to the parts of the house above the basement.
- Below grade – also known as below ground-level, below-grade pertains to areas below the first floor.
- Gross living area – includes only the finished above-grade regions; hence, it will not typically include your finished basement.
How much does finishing a basement add to your home?
Let’s talk numbers. If you’re going to put the returns of your basement finishing to your home, here are your figures: For every $1,000 you spend, you get $700 in return. Considering the time that you will spend in your home, bringing more than half of your initial investment in return is such a great deal! When computing your home’s total value, note that the price below-grade living areas are half the price per square foot of your above-grade area.
Factors considered in valuing your basement
So you might be wondering what factors professional home appraisers look at when determining the value of your functional basement. Well, here are your answers! When assessing a finished basement space, home appraisers often look at the type of basement and the amount of usable space. So you might want to take note of that when renovating your ground space.
Finished Basements and their Costs
But how much will it take you to finish your basement? Here’s a quotation based on the Cost Value Report of 2017 to help you understand how much it will take you on average.
Average basement remodel value (mid-range): $71,115
Potential returns: $49,768 (about 70%)
Is Finishing a Basement a Good Investment?
The answer to this question varies. If you’re looking at the monetary returns in the future, getting 70% in your investments might not be that appealing. But, if we’re factoring in the number of benefits that a finished basement space will bring to the family, then getting back 70% of your investment is a great return.
Different Types of Finished Basement
There are several types of finished basements depending on their design and functionality. If you’re planning on getting a basement finishing project, then read on because this will help you decide based on its functionality and design.
It is also known as an English basement; it is one of the most appealing basement styles out there. A walkout basement features a point of exit leading outside the house hence its sloping design and a stair or full-size door that connects to the area above ground. This option is excellent in terms of added functional space, and it’s also an attractive feature when selling your home.
Standard lot basements
This type of basement is your traditional basement with impenetrable walls, small windows, and minimal natural light entry. This finished basement requires minimal investment; however, it may not be as attractive for resale purposes.
A full-basement has enough standing space in it. Usually sized, like the other living areas of the house, a full-basement is also called a usable lower-level space. This type of basement has a high basement ceiling and adds appeal due to its spaciousness and is an asset that will surely attract potential buyers.
Renovation designs and Ideas for Unfinished Basement
Use practical ways to elevate your basement! If you’re still undecided or you’re brainstorming ideas for your unfinished basement, then here are some finished basement features that you can adapt to your extra living space.
Turn it into another functional room.
Add an entertainment room! Does a game room sound good? How about an extra bedroom? This addition will surely increase the excitement in your home. Not only will the family enjoy this feature, but it will also undoubtedly attract an adventurous buyer.
Install a gas fireplace
Heating is essential to your basement as it is the coldest part of the home. Invest in a gas fireplace that will heat the entire level and keep your occupants comfortable. You can use traditional or cheaper prefabricated options to equip your basement with heat.
Invest in good lighting
A well-designed basement lighting system may do a lot for your space. It can create an illusion of space and improve the overall atmosphere inside. Invest in good lighting to make a drastic yet minimal cost improvement for your living space. You can also use small or full-size windows as an entry of light.
Tips to Remember in Adding Value to Your Basement
If you’re planning on making your basement finishing an investment, then you should learn about the factors that can affect your return on investment or ROI. Your basement’s components like materials and even unused spaces can drive its price up! Be smart about these value-boosting tips that you can use in the future!
Choose Practical Materials
Getting your basement finished with reliable and suitable quality materials is a great way to lessen the cost of your basement remodeling without sacrificing the quality. Use high-quality flooring that will last you for years and take advantage of lighting and ceiling to make your space bigger. You don’t have to spend so much on expensive materials, and you’re still getting a maximized living area that will give you returns when you choose to sell it in the future.
Assess Market demand
The market demand in your area can make or break your home investment plan. Some states have basements in common, which means that getting a finished basement might not be an effective way to drive the price of your house up. If you live in a place where a basement is a need, then getting a good basement finishing can be a price driver.
The amount of usable space is also a factor that can drive your home’s price up. Potential buyers would want to look at the amount of space they can use for their home project, so a good deal of extra space in your finished basement will surely be an attractive offer.
Contact a basement remodeling contractor to help add value to a finished basement.
Want to maximize the value of your finished basement? Then contact a basement finishing contractor to ensure that each change you put in your basement renovation will give you returns in the future. Turn your estate into a potential investment! Know its actual value and maximize its potential! Contact Paragon Remodelling to learn more about basement finishing and get a successful basement remodel!