Finishing a basement is a cost-effective way to add square footage to an existing home. It’s also easier than packing up and shipping everything off to a bigger house. The most important question homeowners have is whether a basement remodel adds substantial value to their home.
How does a finished basement enhance lifestyle?
Opting to finish the basement can improve the family’s lifestyle. The space can be customized to suit the homeowner’s needs, whether that be for a functional office space, a comfortable guest area, a family game room, or a peaceful sanctuary away from the commotion in the home’s upper levels.
The finished basement offers the homeowner additional practical value. The converted basement doubles as an extra bathroom or a generous storage area. It can even be turned into a home theater or a stylish basement bar to entertain friends and family.
As mentioned, turning the basement into a playground for the kids or a home gym for the adults is better than buying a larger home. The remodel is an exceptional value to the homeowners because it fulfills their immediate work, play, social, and overall lifestyle requirements.
Does a finished basement add value to the home?
Not only does a finished basement add valuable square footage to the home and effectively transform the underground space—it also has the potential to boost the home’s market value. A finished basement is one of the top four remodeling projects a homeowner can undertake.
A significant percentage of remodeling costs are recouped when it is time to sell. Plus, finishing a basement outperforms other popular renovations, such as kitchen and bathroom renovations. Only hardwood floor refinishing and new wood floor installs exceed the value of the task.
Finishing the basement can give homeowners a return on their investment by as much as 70 to 75 percent. If $10,000 is spent on improvements, for example, the home’s value can increase by about $7,000. Homeowners shouldn’t expect a dollar-for-dollar return.
The amount recovered after conversion depends on the geographical area in which the property is located. Homes on the West Coast have the biggest return on the investment, with an ROI of 86 percent. In New England, the return is far lower, with an average ROI of 80 percent.
While 100 percent of the finishing expenses are not recovered, it’s still a decent return on investment for sellers. Furthermore, consider the cost as an investment toward a desirable lifestyle. The finished basement offers added enjoyment and convenience—both significant returns.
How does a finished basement add value to the home?
Buyers eye a home with a finished basement favorably. The functional space is simply more attractive to them, considering they can use it to accommodate an office work space or a remote learning area. A home with a finished basement fulfills buyers’ criteria.
In areas where the state and county allow renting out a finished basement, it can turn into an income property. Be sure the finished basement is livable by including proper flooring, lighting, and a bathroom. Homeowners can use the rental income to offset the costs of their mortgage.
What is the cost to finish the basement?
Just as each basement is unique, the finishing costs vary from home to home. The condition of the basement is one important factor that affects the remodel price. Mold, humidity and foundation cracks should be repaired first, which can cost a few hundred to thousands of dollars.
The type and quality of materials also impact the price. The scope of design and endless finish possibilities are additional considerations. A homeowner who plans to turn the basement into an apartment will pay extra for a kitchen, bathroom, and possibly a laundry area.
In general, however, finishing a 400 to a 1,500 square-foot space may cost the homeowner $20,000—the national average. Depending on the size of the basement and the style aimed for, homeowners can spend as low as $3,000 to as high as $80,000.
What should homeowners consider before finishing the basement?
Homeowners who plan to finish the basement prior to selling should enlist the guidance of an experienced realtor to gauge the project’s ROI. A skilled realtor can help the homeowner find ways to stay within the basement remodel budget while still increasing the home’s value.
Research and follow local building codes when opting to finish the basement. If structural problems exist, such as an unstable foundation, cracks on the walls, or mold growth, fix these issues before beginning. Also prioritize safety, checking for radon gas, mold, and the accessibility of fire exits.
It’s critical to discuss a basement finishing budget with a skilled contractor, like R3 Contracting. Our professionals help you determine how much you can do within a given budget. In fact, we’ll help you navigate the entire basement finishing process from the initial concept through the finished build.
As a licensed and insured contractor, R3 Contracting is the preferred choice for countless residential homeowners looking for a qualified, reputable professional who will deliver a seamless, all-inclusive remodel experience. We involve the homeowner in every step of the process.
Our design professionals are your first point of contact. We collaborate with you to create a digital model, then continue to enhance it until it fulfills your ideal vision. Our team has expertly handled all types of basement remodeling projects, from the simplest to the most complex.
Upon finalizing the design, our experts coordinate with the best trade contractors to execute the remodel. We communicate with you regularly, ensuring you stay updated on the progress of the conversion. R3 Contracting delivers excellent customer service and relies on high-quality materials.
Whether you intend to transform your basement into a cozy guestroom, a fun playroom for the kids, a clean space for high-energy workouts or a home bar to entertain friends, R3 Contracting will bring your idea to life. Contact R3 Contracting for your upcoming remodel in Schaumburg or Hoffman Estates, Illinois.