Homeowners and real estate agents frequently ask whether a full basement will increase the resale value of the property. While finishing the basement does add value, it may not be as much as homeowners expect.
The national average rate of return is 79% for every dollar invested in a finished basement. However, this number varies by location.
Rent it out
Many homeowners find that renting out their basements provides a nice source of income. Whether you’re looking to supercharge your savings, pay off your mortgage faster, or simply add some extra cash to your bottom line, this option is worth considering.
Just keep in mind that you’ll need to jump through some legal hoops if you convert your basement into a separate unit with a kitchen and bathroom, such as zoning and homeowner association regulations. You’ll also need to make sure that your basement meets certain standards for safety, such as proper exits and ventilation.
While some housing justice advocates see basement dwellings as a way to help chip away at affordable housing problems, they’re not without their problems. It’s crucial that you consult a real estate attorney before making any final decisions about your property. They can help you create a formal lease agreement and provide other valuable information. Then, you can rest assured that you’ll be protected if things go wrong with your tenant.
Sell it
A basement is an integral part of a home, and when it’s clean, tidy and finished, it can be a beautiful and functional addition. However, if you are planning to sell your house in the near future, it’s best not to invest too much money into this type of renovation.
Basements have the potential to become all kinds of fun spaces, like a bar or a movie theater. However, if you’re looking to increase the value of your home, it’s important to keep your renovations as general as possible. For example, a mirror lined dance studio may be your dream space, but it could turn off buyers who are not into dancing and would prefer something more generic.
Similarly, a wine cellar is more likely to appeal to buyers in regions where the focus is on wine, but it may not add as much value to a home located elsewhere. As such, you should carefully consider the pros and cons of a basement remodel before starting.
Use it as an in-law suite
Many homeowners choose to finish their basements in order to create a space for
their parents or in-laws to live. This is becoming increasingly popular as more and more families struggle with aging parents who can no longer manage living on their own. If done right, a basement in-law suite can be a fantastic way for seniors to stay in their homes without the worry of expensive assisted living.
One thing to keep in mind when creating a basement in-law suite is making sure the space has a separate entryway. This is important not only to meet building codes for emergency egress and rescue, but also to help the space feel more like an above grade addition.
Another tip is to create an open-concept space. This is something that is often overlooked, but it will make the space feel bigger and more airy. Lastly, add plenty of windows to let in natural light. This will make the space more welcoming and enjoyable for your parents or in-laws to live in.
Add value to your home
A finished basement can add value to your home. It is especially useful if your home is too small to meet your family’s needs or if zoning laws prohibit adding an addition. It is also an excellent way to add space if you need a home office or gym without adding on an additional story. Just be sure to reach out to professionals for your plumbing needs. Including a bathroom or anything with water in and out requires professional plumbing access. Things like blocked drain(s) in Melbourne or leaky water faucets can be prevented with the right plumbing help.
Basements are often dark and cluttered, but with the right lighting, they can become attractive living spaces. They can be used for playrooms, home gyms, and even in law suites. Homebuyers are attracted to homes with finished basements because they add usable living space.
Unlike an addition, a basement remodel is usually less expensive and can be completed more quickly. Moreover, it can be financed with a home equity loan or line of credit. You can find a number of lenders that offer these loans. This way, you can avoid paying high interest rates and pay off your renovation costs over time.
