Finishing your basement may seem like a project that is daunting and too expensive to take on. However, having a finished basement can provide value to your home and to your family. Instead of looking at cold concrete and drywall, why not turn it into a family room or bar! Or even put in some extra bedrooms for friends and family. Finishing a basement is much more than just doing it to receive a return on investment. It can also act as a second main floor, providing you with extra space for guests and items. Here are 4 ways you can add value to your home!
A finished basement can provide a great place to store household items. You could turn your basement into a place to store holiday decor, extra dining wear, or exercise equipment. Having a basement that has cabinets and shelves to store items in can declutter other areas of your house and improve your mood and overall look of your home. Storing kids items such as school gear, toys, clothes, and kids’ furniture can also be a very beneficial use of a basement to keep these items out of the way of your family and guests!
Multiple Different Uses:
Your finished basement can also serve as a variety of different functions, such as a bathroom or bedroom. Adding a bathroom or bedroom to your basement allows for more space for guests and family to use at their convenience. Continuing with the family theme, adding a second dining room or family room to your home may also be a beneficial use of space. The basement could also be a place where you celebrate family events, holidays, or host the next party! If you enjoy hosting parties or gatherings, adding another kitchen or a bar may also benefit you! This can be added next to the dining room and give you an extra place to entertain guests and family!
Finishing a basement is often more cost-effective than creating an addition on the main floor of your home. On average, a main floor addition will cost anywhere from $22,500-$74,000. A 400 sq. ft. room can cost as much as $80,000. If you are looking to add a second story to your home, you will often have to create a whole new floor, which can cost anywhere from $100,000- $350,000. In comparison, finishing a basement will cost somewhere between $4,000-$40,000, with an average cost of around $20,000. Considering a finished basement can provide you with a second living room with spare bedrooms and bathrooms. You may also want to analyze what works best for your family and situation when deciding to expand your home.
Return On Investment
It has been reported on average that finishing a basement will give you a return of around 70-75%. Meaning for every $1,000 you spend on finishing your basement; you would get $700 back. Of course, this depends on other factors than just having a finished basement. Your return on investment will also depend on the geographic market you are in and what potential buyers are looking for in their home.
One of the most significant ROIs that some may forget about during the number-crunching phase is you and your family’s ROI. The personal satisfaction of enjoying your basement addition as it fits your needs and wants is what may be most important. No matter the reasoning for finishing your basement, the most significant ROI is the happiness and needs it fulfills for you and your family.