Finishing a basement is one of the most popular home renovation projects right now because it adds extra space to the home and can increase your home’s value when it comes time to put it on the market.
But how much value does a finished basement add? Knowing this can go a long way to helping you determine your budget. You also need to know the right kinds of upgrades to make and materials to pick that can truly maximize your returns.
How Much Does A Finished Basement Add To Appraisals?
Appraisers will analyze your basement in different ways to arrive at a suggested value for your home. Value goes by the square foot, but you should know that basements are often valued at less per square foot than the home’s above-grade floors—by as much as 50%! Don’t be afraid to ask your appraiser lots of questions about how they arrived at their estimate.
Basement renovations can rack up dollars pretty quickly. Between drywall, flooring and paint, as well as the cost of hiring professional contractors to do the job right, you’re potentially looking at more than $10,000. But the good news is that the average basement renovations net the homeowner approximately 70% of the costs when the house hits the open market.
Do Finished Basements Help To Sell The House?
There’s no guarantee that a newly renovated basement will help sell your home faster. You could argue that an updated kitchen or master bathroom are a more effective selling point in the long run. However, the value a finished basement adds to your home depends on how you renovate it.
Here’s something else to consider: Some prospective home buyers don’t even want a finished basement. In some cases, people prefer a basement stripped down to the studs so they can see all the utilities, piping and wiring, therefore, making it easier to remodel to their desired specifications.
Types Of Basements and How They Affect Appraisals
The final appraisal value of your finished basement depends on what type of basement it is. Let’s look at three main types of basements homeowners are dealing with:
This is the most sought-after type of basement because it has a direct exit to the outside and larger windows to allow more light into the space. It might not even feel like being in a basement!
Walkout basements also have the benefit of providing space to set up a patio and being the ideal setting for an in-law suite or rental unit for that extra income that will help you pay down the mortgage!
Partial Grade or Garden-Level Basement
This is a hybrid situation. It’s not quite a walkout basement, but also isn’t a totally dreary standard basement. These basements are sitting a little higher above the ground, so they have quite large windows, but lack a full-sized door for that separate entrance.
This is the basement most people are familiar with. There are foundation walls around the entire perimeter and there are very small basement windows, so it’s very dark. These basements are the least desirable, so they are less likely to be renovated by the owners.
If you plan to keep living in your home for a few years, then finishing your basement is a good plan and a solid investment. Especially for families, it’s nice to have that extra space that you can fully customize to everybody’s needs. Ultimately, having a finished basement will add value to your home, and it’s one of the less expensive home renovations projects you can undertake at any time. Are you ready to start? Call the basement renovation experts at Moose Basements and we’ll give you a free consultation.