Does a Finished Basement Add Home Value?

A basement remodel in NJ is used by families in all kinds of ways. What is your basement like? Is it a cold, dark, and dreary place that you avoid at all costs? If so, it may be time to start making better use of your space with a basement remodel. Just imagine the ways you could use it!

You may be wondering if a basement remodel is worth the expense. What kind of value does a finished basement bring for resale or even an appraisal for refinancing your home? It's good information to know before you read through those remodeling magazines and start putting your hard-earned money into basement home improvements.

Types of Finished Basements

There are three main types of basements to know about.

1. Full basement – This is probably the most common type of basement where all the basement walls are the same height. This kind of basement is all below ground and usually appraised as the lowest value of all the types of basements.
2. Garden-level basement – These basements have more natural light because windows are at least partially above the ground and let in light. Because of this natural light luxury, appraisals are usually higher in garden-level basements.
3. Walkout basement – A walkout does just as its name suggests. You are able to walk outside through a door in the basement. Sloping lots typically offer walkout basement options more easily, and this type of basement usually allows for more natural light to come in. All these bonuses typically bring a higher appraisal as well.

Families use their finished basement space in so many ways, and the type of basement you have may affect how you are able to use your basement area. Basement renovations can bring extra cash by renting out the space or a fun place for you and your kids. Below are a few great ideas for most types of basements:

• Recreational area for your kids and youth to hang out with friends
• Office space 
• Apartment space for family or to rent out (walkout basements are best for this because of the separate entrance they offer)
• Home gym
• Man cave
• Crafting space
• Home theater
• And much, much more….

This is just a list to get you started. But, really, your basement can be used for whatever you can imagine. It's all up to you and your family and how the space can be best used.

Can I Recoup the Value of My Basement Remodel?

While there are all kinds of uses for a basement space, the types of finishes you use and the things you include in your remodel matter when it comes to your return on investment. In general, for every $1,000 you spend on your basement remodel, NJ homeowners can plan to get about $700 back. You should not plan to recoup the full cost of a basement remodel.

Knowing this, you'll have to decide if the remodeling cost and work of finishing a basement are worth it for your family. If you will only be in your home for a short time, you might want to pursue a renovation elsewhere in the house. If you feel it can put you ahead when selling your home, it may be in your best interest to move forward with your basement remodel. 

Best Choices for ROI

You will add value to your home by finishing your basement, but there are a few things that really matter when it comes to how much your return on investment (ROI) ends up being. Some of these are:

• The real estate market – depending on where you live, square footage is worth a lot.
• What materials you use for finishes – You shouldn't try to use the highest quality furnishings or finishes when you complete your basement remodel. Keeping costs minimal but still good quality will help you save cash up-front, and your ROI will typically be just as good as if you were to go crazy or splurge on specific finishes.
• How square feet can have optional usage (open spaces will usually have a higher ROI than having several closed bedrooms).

How Are Basements Appraised?

Obviously, a home with a finished basement will appraise for more than a home without one. Typically, the deeper your basement goes below ground level, the less your finished square footage will appraise. You should know that a finished basement will never appraise for as much as the main level that is above ground.

Appraisers will compare your home and property to other similar homes that have recently been appraised in your area. They will also consider things like square footage, type of basement, open space, and bedrooms. 

Suppose you'd like to narrow down the most important things in your area and home price range before beginning your renovation. In that case, it's a good idea to ask for help from a real estate agent that would be able to look at comparisons and tell you what kind of finishes may be best. 

What Factors Affect Basement Value?

Your basement remodel value will depend on a few things. Some of these include:

1- Can you access the outside through a door from the basement (a basement walkout)? 

2- How many windows are there?

3- What types of finishes are there (stone fireplace, tile floors, linoleum, etc.)?

4- How many bedrooms are finished?

5- Is there a finished bathroom?

Magnolia Home Remodeling Can Help You with the Basement Renovation of Your Dreams

Choosing the right contractor for your NJ basement remodel can be a tough decision. Magnolia Home Remodeling makes the choice easy by offering quality, fairly priced basement renovations that will add to your living space, home usability, and lifestyle. 

Contact Magnolia Home Remodeling for information on what we can offer in your basement remodel. NJ homeowners can rest assured that we will take care of building code concerns and help you make decisions. For example, we can help you determine whether adding a bathroom in your basement is in your best interest right now or if you should pick particular finishes that you have been considering. Let's get started. Give us a call!