The presence of a basement can be a blessing for homeowners looking to make drastic home improvements. With the right plan for the space, you can create a whole new living area or practical below-ground extension to the home for work, rest, or play.

The question is whether all this work can add value to your home, especially if you plan to sell. This guide will show you why basement renovations are such a good idea, what options to consider, and the potential return on your investment.

Does A Basement Add Value To Your Home?

Having an unfinished basement with structural problems and no practical purpose will not add value. It could be a big turn-off for prospective buyers who don’t want to deal with that. A finished basement is a whole other story.

Let’s look at three of the main reasons why basements add value to your house.

1) A below-ground space can offer additional square footage to the property, which goes into consideration for the final valuation.

2) This additional space can become a functional living space in your property, making it easier to improve a family home.

3) Prospective buyers will appreciate the chance to move into a home with a finished basement rather than a costly renovation project.

Turning Your Basement Into A Functional Space For The Family.

The best way to add value to your property with a finished basement is by turning this unused space into an attractive additional living space. It is up to you how you go about this and what sort of room you are looking for. Your final choice could depend on the layout and elevation of the basement compared to the rest of the property.

Below Ground, Walk-Out Or Garden-Level Basement Renovations

A lot of basements are fully enclosed spaces below ground. There may be some small windows high on external walls, but you are otherwise dealing with a lack of natural light and some thick foundation walls. While they seem unappealing at first, they can transform into some great additional spaces.

Some homes will have a walk-out basement instead, where the lower level is uncovered and more like a ground-floor extension of the home. This means the chance to add big screen doors and patio spaces for a cohesive indoor and outdoor space. The right design can extend the potential of the home and make it more appealing to buyers.

Then there are the partial-grade garden-level basements in between. You can’t create the same sort of walk-out feature from the floor, but there is more access to natural light with larger windows. You can get creative with this sort of living space.

The Best Renovation Projects For Finished Basements.

Whatever style of basement you have, you need to be sure that you create something appealing and practical within. The fully below-ground basements are great for entertainment spaces and the stereotypical man cave. The lack of natural light makes them perfect for screening movies and setting up areas for gaming. They could also become a large playroom for the kids where they can run around and make noise without disturbing parents or guests upstairs. Or maybe you currently lack a suitable place to work out.

All of these options will appeal to families looking to buy a home with more than your average living space. Anyone looking to refurbish a basement with the sole intention of selling may also consider turning this into a home office. With so many parents looking to work from home, this stops them from having to turn a spare bedroom into a study.

The options for walk-out basements are a little different because they are more accessible extensions to the home. They can act as secondary living areas here, especially when entertaining friends and family. A big open-plan kitchen and seating area that extends onto the patio allows for great parties and cookouts.

Others choose to turn these walk-out spaces into rented accommodation to earn extra income. This could be through a permanent tenant, an older relative struggling on their own, or as a holiday rental when they aren’t at home. This one is more complicated legally because of the requirements for habitable spaces and the need for basic facilities and plumbing.

How Much Value Does A Finished Basement Add?

Your finished basement isn’t just going to add value to your experience as a family living in this upgraded home. It will also add value to the property when it goes up for appraisal and onto the market. To do this, invest wisely and hope for a good return.

The easiest way to make money back on a home renovation is through a finished basement. Functional kitchen and bathroom investments may reach an ROI of 100% on a really good day but may fall to around 70%. Basements can go higher at a consistent rate because you are putting in the work on what was a dead space and adding instant additional value to the home. Typically, we’re looking at 50-75%. If you reach 75%, that means that for every $1,000 invested, the value of your property will go up by $750.

However, the final appraisal cost doesn’t depend on expenses alone. You can’t throw $50,000 at a renovation with poor materials and workmanship and expect it to raise its value by 75%. It may not be appealing to live in or even habitable. You also can’t skip important costs like permits and surveying checks to make sure everything is above board. Potential buyers and appraisers may see this as a big red flag.

Budget for everything carefully, from the basics of the materials and costly features to the finer details. The cost of labour is a big issue here, too, so find the right team that offers value for money. Know where to spend money and where to save it to make the biggest return.

Should You Consider A Finished Basement Renovation For Your Home?

There is no point in letting a good basement space go to waste. Those who put in the right time, effort, and money can create something incredible to increase the home’s value. It can start as a great new space for the family and then entice new owners once it is time to sell up and move on.

If you want to get started and learn more about adding value to your home with these renovations, get in touch. Contact our team at Karry Home Solutions for more information on our home renovation services.