Does Finishing the Basement Add Value to Your Home?
Are you considering finishing your basement to create more livable space inside your house? One of the most popular home improvements that Vatter Construction offers homeowners in Lancaster, PA, is basement remodeling.
Depending on your preferences and the condition of your basement, this service could be a hefty investment. As such, you might ask questions like, "Does finishing the basement add value to my home?"
Your basement remodeling return on investment could be substantial under certain circumstances. Keep reading to learn how.
The Average Cost of Finishing Basements
The cost of finishing a basement depends on the extent of the upgrades. Still, this kind of project is a significant home improvement.
Homeowners can spend as little as $3,000 or as much as $80,000 to transform their basements. The national average for a room measuring 400 to 1,500 square feet is about $20,000.
Your project's final cost will depend on several factors, such as:
- Contractor labor expenses
- The type of space you want to create
- The original condition of your basement
- Permit fees
- The kinds of materials you pick and their quality
- Furniture and decor
Does Basement Finishing Increase Value?
Does finishing the basement add value to your property? It can.
Although many people don't recoup 100% of their remodeling expenses, finishing your basement could yield a 70% to 75% return on investment (ROI). The amount you recoup is essentially the additional value the remodeled basement brings to your property.
What Factors Contribute to Finished Basement Home Values?
Homeowners looking to add value to their homes with finished basements should consider the following factors to ensure a profitable house sale.
Basement Type
Homebuyers prioritize walk-out basements that have a full-sized door leading directly to the outdoors. These basements also tend to have larger windows for more natural light, which buyers appreciate. On the other hand, basements that are below-grade or below-ground, without separate entrances, tend to have lower values.
Room Use
A fully remodeled basement has numerous uses, but buyers tend to prefer certain uses over others. For instance, an extra bedroom in the basement could increase the home's value, but not as much as a small apartment layout with a bathroom and kitchenette.
Home Location
Your local real estate market also affects your home value, whether or not it has a finished basement. If your local market is full of houses with finished basements, an unfinished one may not get much attention. Conversely, buyers may prioritize properties in a market where remodeled basements are in high demand but have a limited supply.
How Appraisers Determine the Value of Remodeled Basements
If the answer to "Does finishing the basement add value to properties?" is that it depends, how do appraisers evaluate remodeled basements? First, they take a rough estimate of your home's price per square foot.
Living space that's below-grade is worth roughly half the value of above-ground living spaces. Sometimes, house appraisers calculate a property's total square footage and then divide the figure by the gross living area. Then, the appraisers compare your home with similar properties in the area that have recently sold to determine value.
Ready To Raise Your Property Value? Contact Vatter Construction To Explore Basement Remodeling
Does finishing the basement add value to your home? Basement upgrade ROIs are worth considering if you want to increase your home value. As one of the leading renovation companies in Lancaster, PA, Vatter Construction offers outstanding attention to detail, years of industry expertise, and unmatched reliability.
If you have basement remodeling ideas you want to explore with our experts, contact Vatter Construction today at (717) 696-0701. We're ready to make your dream home a reality.
Frequently Asked Questions About Basement Remodeling
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Basement finishing and remodeling are similar but not identical. Refinishing refers to cosmetic changes, like installing flooring and drywall, whereas remodeling is more extensive and involves layout modifications or structural changes.
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Having a remodeled basement could impact your homeowner's insurance, such as a premium increase, if the project expands your property's livable square footage.
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To ensure a successful basement remodel, you should consider the room's moisture levels, lighting, plumbing, and flooring. It's best to contact experienced remodeling contractors to explore the ideal design for your home and household needs.
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The answer to "Does finishing the basement add value?" is that it depends. These projects typically yield a return on investment of at least 50%, which translates to an increase in property value.