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An unfinished basement, undoubtedly, is not the most aesthetically pleasing area in your home. That’s why most homeowners think that basements are merely for storing broken household items and stuff that’s meant to be thrown or given away.
For those eyeing to sell their homes, however, a finished basement can help increase property value. Making your underground area as visually pleasant as the rest of your living space above ground can help your rake in a few thousand more from a buyer.
Before listing down the moneymaking solutions that can be acquired from a finished basement, let’s start with the basic question: how you can achieve investment returns from finishing a basement.
Why A Finished Basement Gets You An ROI
According to industry estimates, there’s a 70% return on investment (ROI) for works spent on finishing your basement. Simply put, for every USD$1,000 you spend on your remodeling works, you can get back USD$700 if you ever decide to sell your property in the future. Overall, it’s said that a finished underground can increase your home’s value by 30%.
These figures are generally applicable to properties that have had exterior wall installations, fixed ceilings and floorings, painted trim, and the inclusion of other amenities, such as a bar and bathroom.
House renovation contractors, including https://www.renoduck.com/ reveal that a basement renovation costs generally cheaper than upgrades done on the upper levels of a residence.
How Do You Define A Finished Basement?
A finished basement is simply referred to as an underground area that’s constructed in the same manner as the other living spaces in your home. Put simply, it should have the proper ceiling, flooring, wiring, plumbing, and other works that make it possible for occupants to stay in the area comfortably.
Generally speaking, you can install flooring, close out the basement ceiling, and finish the walls or place insulation. This likewise means having the electrical and plumbing works done to ensure your new living space is safe and comfortable.
How To Increase the Value of Your Home Through Basement Finishing
If you want to increase the value of your property before listing it in the real estate market, consider the various options in converting an unfinished basement into a functional living space.
You Can Make An Additional Bedroom:
This allows you to increase the square footage of your home, which is one of the critical factors to increase the fair market value for your property. An additional bedroom in your basement is more attractive to some home buyers.
- A Space For An Additional Bathroom: Having a two-bathroom instead of a single-bathroom home appeals to a wide range of prospective purchasers. Adding a bathroom in your basement is an invaluable investment, making your property a hot commodity in the market.
- Basement Renovation Has No Local Restrictions: If you want to increase the value of your home, you can choose to extend upwards or horizontally. Unfortunately, there may be local building code restrictions that could stop you from doing both. In these instances, you’re left with finishing your basement to extend as an additional bedroom, increasing your property value without violating any local building codes.
- Turn It Into Rental Property: Is the house in question your property rental unit? You can increase cash flow by renovating your basement and turning it into a bedroom. This way, you can lease the space and turn it into an income-generating living space. Just make sure you’re familiar with the requirements for your local building code. Most states require an entrance and egress area, or a dedicated parking area for each bedroom rental.
- Lower Costs For Higher Returns: A basement can be more than just a storage space. If you’re a skilled do-it-yourself handyperson, you can perform the renovations yourself such as flooring, putting up wall insulation, and other forms of finishing work. This way, you’ll only need to hire specialists such as plumbers and electricians to perform more complex tasks. Additionally, you can save significant basement renovation costs by purchasing materials that can make your basement a more comfortable place to stay in.
The Bottom Line
A finished basement can become a living space when it has amenities similar to the rest of the areas of your home. You can do this by getting familiar with your state’s local building codes and by adding the proper lighting, heating, wall and flooring, including the electric and plumbing works.
Finishing your basement will also increase your property value; a very helpful idea if you’re planning to sell or rent out your home in the future. You don’t have to break the bank when you’re renovating your home’s underground level; you can do some of the works on your own and seek the help of professionals if necessary.