Finishing a basement can have huge impacts on the value of your home. While renovations like this cost money in the short run, they are often a sound investment that can be enjoyed for years to come. Basement renovations can add a great deal of living space to a home, offering potential buyers an opportunity to enjoy more rooms than just the ones on the main and second floors.
Finishing a basement is also a great way to increase the value of a home on the real estate market. A renovated basement often adds between 10 to 20 percent to a home’s value right away, and provides a secondary income potential when converted to a rentable space. Furthermore, turning a basement into a guest house is a great way to make money, if you choose to rent it out.
Despite the positive impacts, there are some risks involved with finishing a basement. Because the basement is the most susceptible part of the home to water damage, it is important to be diligent about waterproofing. If moisture enters, there is a chance of mold and mildew forming, which could lead to health risks for the occupants and long term damage to the home’s structure.
Financial Factors to Consider
Finishing a basement adds quite a bit of labor costs into the equation. As basements require more specialized work, it is important to hire a professional or, at the very least, have a comprehensive understanding of the required steps to complete the project. It is also important to research potential costs before beginning, as the overall cost of the project can easily start to get out of control without proper planning and financial management.
When deciding whether or not finishing your basement is worth it, be sure to factor in the potential increase in your home’s value. Combined with the impact to your quality of life, it is often a worthwhile project— especially when viewed as a long-term investment. Don’t forget to factor in the potential tax benefits you may receive for completing such a project.
Choosing the Right Contractor
When looking for the right contractor for the job, it is essential to do your research. Look for experienced professionals who understand the nuances of working in a basement and are willing to share the strategy for any potential unforeseen issues that could arise during a big project like this. Make sure you are aware of a contractor’s reputation and always get a few price quotes from other companies before making your decision.
Additionally, be sure to review all of the building codes in your area before purchasing materials. Different areas of the country require different permits and procedures when renovating your basement. Do your homework and prepare yourself for the required paperwork that each step of the process may involve.
When starting a project on your basement, it is best to ask a lot of questions. This can help you understand the process and better assess whether it is the right decision for you before you dive in head first.
Long-Term Benefits of a Finished Basement
The value of your property isn’t the only factor to consider when making these decisions. Finishing a basement can potentially offer a great plethora of living space to use as additional bedrooms, a recreational space, an office, or any other way you see fit. A finished basement is also an excellent way to start a rental business if you choose to take that route. Regardless of which option you choose, it is a great way to improve the quality of life in your home.
What to Keep in Mind
- Finishing a basement increases a home’s value by 10 to 20 percent right away.
- Waterproofing is a must to avoid any future mold and health issues.
- Research the building codes in your area before beginning the project.
- Choose an experienced contractor to work with.
- The long-term benefits of a renovated basement are exponential.
Conclusion
Finishing a basement can be an expensive undertaking, but it is usually worth it in the long run. Not only does it offer value to your home, but it also provides valuable living space and potential additional income sources. Consider the cost-benefit analysis of finishing a basement and make the decision that best fits your financial goals.