How Much Value A Finished Basement Really Adds
Basement conversions are the trend, with more and more homeowners wanting larger homes but needing help to afford to buy a larger property. Basements are often wasted areas of potential space, dank and dark and filled with cobwebs and objects that no one actually wants that have been left and forgotten. Basements have the potential to be transformed into bedrooms with ensuites, a large recreational room, a home cinema, and even a swimming pool! There are also savvy homeowners that convert their basements for the additional value it will add to the property if they decide to sell. The large size of most basements has these prospectors rubbing their hands in glee at the expected windfall they are expecting.
But, how much value does a finished basement add to a house? Some homeowners will be disappointed to find that the square footage of a finished basement is not valued the same way as that of their other rooms. The return on your investment is not small by any means, data shows that the average most homeowners receive when they sell their home with a finished basement is 70%. However, this figure does depend upon the extent the basement is finished.
Should I Finish My Basement?
Homeowners often ask should I finish my basement before selling? This is not a question easy to answer, you will get a return on your investment if the basement is finished, but how much depends upon how well you finish it, how you decorate it, the furnishings and the functions. Basements with kitchens and bathrooms are worth more than a basement with just bedrooms. Basement appraisal can also be affected by the location of your home.
What Factors Will Affect Finished Basement ROI?
The ROI on finished basements depends upon several factors.
- Where you live, if you are in a competitive market where basements are common you will probably receive a greater ROI
- How much money you spend on fixtures, fittings and furnishings, buying top-quality finishes will not get you more money in fact it will reduce your ROI. The average is good when finishing your basement.
- The final basement, having a few open spaces will have a higher ROI compared to several closed-off rooms, buyers want the potential to make the basement into what they want.
3 Tips For How To Boost The ROI Of Your Finished Basement
- Use suitable materials for flooring. Many basements have moisture problems, wood flooring can warp and carpets can lead to unpleasant smells. Ceramic and stone tiles are the best recommendation, covered with a rug.
- Install recessed lighting and exposed ceilings to create a light and airy space. LED lights can be used under cabinets and in the ceiling.
- Create a mini in-law suite These are in high demand, and will help To maximise ROI in your finished basement, Adding an in-law suite or potential in-law suite can add value to a home for buyers as a place for guests, or even an Airbnb rental.