When you love the home you own it’s easy to believe that you’ll never move again—that is, until that dream job comes along with a transfer, or you one day find that all those stairs in your home no longer hold the charm they once did. For reasons such as these it’s important to carefully consider the types of updates and/or additions you put into your existing home to ensure that your investment dollars are well-spent and will one day yield a return on your investment (ROI).
Finishing the basement of your home not only immediately adds more livable space to use and enjoy, but can also increase your home’s resale value in the long term.
What Adds Value and ROI When Finishing a Basement?
When beginning an initial online search for a new home, buyers typically enter parameters of their desired number of bedrooms, bathrooms, and overall square footage. Adding a bedroom or two as well as a bathroom to a basement finish includes your home in search results from which it would otherwise be excluded–exposing more potential buyers to your property. A professionally-finished basement that matches the integrity of the rest of your home (as opposed to a slap-dash finish that looks like a DIY weekend project) communicates to buyers that your home is well-maintained and upkept.
Creating a fully-functioning guest suite in the basement can serve multiple purposes. If local zoning laws permit, the space could be rented out long-term to generate income, or—as is becoming more common—a basement suite could accommodate multigenerational family living for either a young couple starting out or older parents needing more attention. Another income-generating option for a solo apartment or suite is the Airbnb route, which allows you to set rental dates that work with your schedule. Even if you only use the basement suite to entertain your own house guests, it has the potential to add significant value to your home.
When it comes to home additions, local zoning codes and HOA covenants can prove restrictive and tricky to work around. Finishing your basement increases the amount of livable space in your home without violating any local ordinances (and better yet, the HOA can’t tell you what color to paint the walls!).
A finished basement provides great space for a family room, game area, playroom, office, or hobby room. Simply creating dedicated space for families to be together can add value to your home with its increased square footage and perceived benefit.
The amount of value added to your home by a finished basement depends upon where you’re located. Remodeling magazine recently published a report stating that homeowners can expect to see about 50-80% of what they spend on finishing a basement in added value to their home.
For example, if you spent $80,000 finishing your basement, you could ask for up to an additional $64,000 when selling your home. That’s not your entire investment, but it’s pretty close—especially when you consider how much additional value you’ll get from enjoying your home’s new finished basement while you still live there.
Are you interested in bringing your drab basement to life? If so, Finished Basements & More is here to help. We’re experts with over 40 years of experience serving the entire Denver metro area and northern Colorado.
We’ll work with you to design a basement finish plan that suits your style, budget, and timeline—one that you’ll enjoy living in now and reap the rewards of later, when it’s time to sell.