Finished Basements Increase the Value of your home
Here at Kitchen and Bath remodeling a finished basements can increase the value of your home. We remodel a ton of basements to help with more living space and gives a home a better overall look. Here is a article from Ezine Articles that explain how a finished basement can increase the value of a home: http://ezinearticles.com/?Finished-Basement—Increase-the-Value-of-Your-Home-While-Adding-More-Living-Space&id=3841799
Here are some of the more important factors to consider.
1. Intended use of the finished space
This is probably the most important factor when it comes to determining the added value that a finished basement brings to a particular home. Ask yourself this question: Was the basement finished for a specific reason? Sure just about any finished basement adds to the overall living space but does it serve a specific function? Basements that have been finished with a specific end use in mind will typically result in a greater return on investment. Examples include:
- Basement apartment that generates a rental income
- An in-law/nanny suite
- Home theater room
- Home exercise room (gym, yoga, Pilates, sauna, etc.)
2. Quality of the finishing
Like any other finished space in a house, the quality will have a direct impact on the value. High end finishes when it comes to flooring, lighting, bathrooms and kitchens are highly sought after and will contribute to the overall increase in value. Some other important things to consider when it comes to quality include:
- Quality of the Workmanship (this probably goes without saying but having the best finishes poorly installed won’t get you much value)
- Ideally the quality of the materials should be consistent with the rest of the home (you will never get full value for a lavishly finished basement that dramatically exceeds the finishing in the rest of the house)
3. Overall size / increase in living space
Let’s face it, for the most part people finish basements because they want more usable living space! So it follows that the more square footage a finished basement adds to the overall size of the home the more value it will bring. In other words, size matters! Some other important things to consider when it comes to size include:
- Functionality of the layout (layouts that make the most of the usable space will always provide a greater return)
- Open concept design (designs that give the perception of more space tend to be more popular than designs that have numerous areas divided by walls and hallways)
When a finished basement may not increase value
While having a finished basement is usually a big plus there are some cases when it may not result in the expected increase in value. These cases are fairly uncommon and usually are a result of one or more of the following:
- Extremely poor layout and design (nothing is worse than a layout/design that takes away from the overall appeal of the home or the perceived amount of usable space)
- poor quality workmanship (typically this includes the do-it-yourself renovators whose workmanship will be called into question)
- partially finished basement (the truth is people will tend to avoid homes where there is extra work required – even the perception of extra work will send them running in the other direction because most people want move-in condition!)
- There are always those buyers that prefer an ‘un-spoiled’ basement so that they can fulfill their own basement renovation goals.
Determining the exact value of a finished basement
For the most part, having a finished basement will generally yield a positive return that can add tens of thousands of dollars to the value of your home. While the specific added value will vary on a case by case basis, I can tell you that it is directly related to the number of benefits that the finished basement offers potential buyers. Some of the most important benefits include:
- Additional living space (added bedroom, recreation room, second kitchen)
- Themed rooms (home theater, exercise room, games room, home office, hobby room)
- Income generation (in the case of rental suites)
- In-law / nanny suites (for those who require a live-in nanny or care for elderly family members)
- Additional storage space (closets, storage room, utility room)
If you’re a homeowner planning to finish your basement and want to know that your investment will yield a positive return, be sure to finish your basement with the above benefits in mind!
If you’re a homeowner looking to establish how much value your finished basement adds to your home then take a long hard look at what benefits a potential buyer would derive from your finished basement. The longer the list, the bigger the increase in value you can expect.