In many American homes, basements provide additional square footage that can be used for storage or for the operation of essential equipment. But if you have an unfinished basement, you’re sitting on top of a huge, untapped resource.
Finished basements can provide an immense amount of value — both in terms of how much your property could yield upon selling and how much the lives of your loved ones can be improved with basement renovations. Let’s take a closer look at basement remodeling to assess its return on investment and the many ways in which this space can be used after the renovations are completed.
The ROI of a Basement Remodel
First, it makes sense (and cents!) to talk numbers. After all, if you’re going to work with Louisville remodelers on home improvements, you’ll want to know that you’re making a sound investment.
According to Remodeling Magazine and HomeAdvisor, the average basement remodel can provide up to a 70% return on investment (ROI). In simple terms, that means you can expect to get $700 back for every $1,000 you spend on your basement remodel when you sell your home.
In general, homes with finished basements will be appraised at a higher value than homes with unfinished basements. Of course, you’re likely to experience higher returns if your finished basement includes desirable features like insulation, tile flooring, and even an extra bathroom. Keep in mind that basement renovations are often more affordable than building an entirely new addition — which means you can get more for your money on your existing property.
That said, above-ground living spaces are still seen as slightly more preferable to buyers. A finished basement can be extremely attractive to many families, but you’ll see a slightly higher ROI with an above-ground addition. You’ll need to consider your budget, the renovation timeline, the disruption the renovation might have on your lives, and your ultimate goal for your property when determining whether to opt for a basement renovation. For example, if you’re planning on staying in your current home for the next 20 years and you’d love to have a spot for leisure time or even a separate space for family members to live, finishing your basement can be an excellent option.
How Basement Renovations Can Be Utilized
It’s not necessarily all about how much money you could potentially make when selling your home. Your vision for this finished basement space is an important factor when deciding whether this is the right move for your family. Here are just a few ways you could use your finished basement:
- In-law suite
- Guest room or extra bedroom
- Income property
- Extra family room
- Children’s play area
- Home gym
- Game room
- Home theater
- Craft space
- Bar or wine cellar
- Laundry room
- Home office
Another great aspect of a basement renovation is that you can theoretically combine a few different visions into one project. For example, you could have your contractors include a separate entrance, a bathroom, and a small kitchen to plan ahead for an in-law suite while using the space as a family room and entertainment area in the interim. Alternatively, your finished basement could include laundry facilities, a home office or craft nook, and a play area for the kids. Really, the sky’s the limit when it comes to renovating your basement.
Basement renovations are known for their relatively high return on investment — but value is so much more than the asking price of a home. By making smart choices when designing your remodeled basement, you’ll be able to benefit from the features your family wants most. And if you do decide to sell your house in the future, you can feel confident in the knowledge that your basement renovation will also appeal to prospective buyers. For more information on how we can bring your vision for your finished basement to life, please contact our team today.