Owning a home is a great long-term investment. For your home to continue to appreciate, you will need to make improvements and renovations from time to time. One renovation that all people should consider is renovating their basement into a usable and livable space. A finished basement can increase your home value in several different ways.
Why Finished Basements Are Worth the Investment
Finishing a basement isn’t a cheap task, but it can provide you with strong returns that offset the costs. You have to choose the best use for the space so that it adds value to your home. It must be of interest to potential home buyers if you plan on selling your home in a few years.
A finished basement must integrate with the main floors of your home. It should be just as appealing as upstairs rooms. No one wants to be greeted by concrete, ductwork, and storage boxes. You can turn your unfinished basement into the space family and guests will want to spend time in.
Transforming the basement of your home into a livable space will take time and money. If you show it as a usable and desirable space, it may help you increase the value of your home. Basement remodels typically recoup about 70 percent of their costs at the time of resale.
Some buyers are actively seeking homes with finished basements. In a competitive market, your home can stand out among other homes if it is one of the few with a finished basement.
In areas where extra living space is in great demand, the return will be even higher. It is recommended that you base your renovation budget on the current value of your home. Keep your basement budget under 10% of your home value. This will ensure it will add value and not break the bank.
2. Income Stream
Basement space has the benefit of being away from the rest of your living area. A finished basement increases the usable square footage and function. One way to add value is to use it as a separate income property. Some ideas for finishing your basement could include a kitchen, bathroom, and bedroom.
You could also have a separate exit and entrance to convert it into a rental unit. Having the ability to rent this space out, will add a considerable amount of potential cash flow and value to your property.
3. Personal Enjoyment
It’s usually advised to finish a basement for your enjoyment. You can use it to provide space for a growing family, accommodations for short and long-term guests, an entertainment room, or exercise room. A finished basement will not disrupt your family's life on the main floors of the home. Instead, it provides added comfort and functionality for you and your family.
Ways to Use Your Finished Basement
If you decide to improve your basement, you could immediately increase the usable and livable square footage of your home. This will appeal to many homebuyers that are looking for an extra living space. Consider what option will make the best use of the space.
Family rooms often get more use than a more formal living room. Consider adding a suspended acoustic ceiling to help insulate the basement from the sounds above, while making the room comfortable with things your family will enjoy doing together.
If you love to entertain, consider building a bar into your basement. Basements are already the ideal place to install a wine cellar, pool table, and other games. Walkout basements are ideal for summer entertaining and as an escape from the heat. Match the bar countertop to the color of the floors for a stylish appearance.
Basements are an excellent place to add a theater to watch movies with friends and family. With all of the streaming services available, you won’t have trouble finding a good movie, especially during family events during the holidays.
Create a dedicated space to work out in. A home gym might be just what you need to find the motivation to exercise. A finished basement is the perfect quiet escape from the rest of the house for you to bike, practice yoga, or do some cardio.
Add Valuable Living Space to Your Home
Need to remodel a room in your home? Finnteriors can turn a dreadful space into a functional living space. Our experienced team can turn your dreams into reality. Contact us today for a free consultation.