You’ve fantasized about a mancave. Okay, maybe one of you has fantasized about a mancave and maybe one of you has some other ideas like having an in-home workout space, an office or a playroom for the kids. No matter what you need the extra space for, a finished basement can almost always benefit you in the future when you decide to sell your home. Surprised? It’s commonly said that putting money into finishing a basement isn’t going to get you your best return on your investment. When you compare basement renovations to kitchen or bath renovations, your kitchen and bath will typically always increase your value by 1 or 1.5 times the amount you spend. And while that doesn’t always stand true for finishing a basement, it’s important to consider this:

A finished basement can be the difference between selling your home and not.

Particularly if you have 1, 2 or 3 bedrooms. Why? Often times a finished basement can be the substitute for the additional bedroom, office space or playroom that your buyer is looking for. Consider newlyweds with plans to have children in the future. A 2-bedroom home may not fit what they’re looking for. With the need for an office and an additional bedroom if they plan to expand their family, the space just might not work for them. However, a 2-bedroom with a finished basement allows more possibilities for office space, play space or a guest room that could make the sale for them in the end.

So what are some benefits for you as the owner of the home?

Well, it’s an investment that you can enjoy while you’re in the home for the same reasons your buyer may like it. But it’s also a big change by way of more space that doesn’t involve a large amount of construction like adding a bedroom would. And of course, it not only increases the value of your home, but it broadens the pool of buyers who will consider it. Your home is now more marketable. That’s a change that’s unlike any other renovation. Renovating the kitchen or bath increases the value of the home, the aesthetic appeal and at times the functionality, but it does not increase the number of shoppers particularly. If we consider a two bedroom home, a finished basement can attract families looking for 2, 3 or even 4-bedroom homes depending on how large the basement space is.

What next?

Finishing a basement can cost anywhere from $10,000 to $60,000 depending on what your plans are — shelving, home theater, etc. But also consider that the most important part of finishing a basement is simply making it functional. You don’t need to overextend your budget in order to increase your pool of buyers. Sticking to drywall, paint, carpet, molding and making sure it’s properly wired to accommodate electronics like computers and TVs should really be the main focus of the development in order to make your renovation most economical.

In a buyer’s market, it’s always important to consider renovations that will be economical, functional and broaden your pool of buyers. With the house shopping season under way given the start of spring, stay on your toes as a homeowner and always consider yourself a seller even if you are not currently selling your home. For more information on finishing your basement for more added living space for you and your buyers, check out www.doityourself.com!

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This Post Has 2 Comments

    1. Hi Pramesh:

      Certainly, we can help you look into your options. You can use Rocket Mortgage to get a customized mortgage solution that works for you based on your credit and financial documentation. If you would prefer to get started over the phone, you can call (888) 728-4702. One of our Home Loan Experts will be happy to go over details with you.

      Thanks,
      Kevin Graham

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