Complete Basement Finish
Add value to your home and get maximum return from your investment with an addition, remodel or basement finish. The combination of a basement bar and small kitchen lets you entertain family and friends in style. With a walk-out basement, you can extend your entertaining directly from the pool room to the patio.
Finishing a basement is often a blank canvas where you can add a bathroom, create leisure space or even make an additional bedroom. Basement remodels can also be affordable. Here are a few benefits of finishing a basement.
Add a Bedroom
Adding a bedroom in a basement is pretty straight forward and not too expensive. This is an easy way to add value and livable space to your home. The addition of bedrooms can add value to the property and help you appeal to a wider range of buyers.
Add a Bathroom
Just as finishing a basement can allow you to add a bedroom to the property, it can also allow you to add a bathroom. It can be a big draw to have a two bathroom home instead of a one bathroom home. Adding a bathroom will be more expensive than other rooms as it will require plumbing, fixtures and tiling.
While the initial cost may be greater, the functionality it offers to the homeowners may be an invaluable investment in the long run.
Value to the Home
Finishing a basement will add value to the investment property. In the United States, on average, finishing a basement will give you a return of 70 to 75% of your investment.
For example, if you spent $1,000 on improvements, it would increase the value of the property by about $700. If you spent $10,000 on improvements, it would increase the value of the property by about $7,000.
Whether you are trying to quickly flip the investment property or keep it yourself as a multifamily, finishing a basement can allow you to add a rental unit. Of course, this unit would have to be approved by the zoning department in your town.
Any living space would have to conform to local fire code. This usually means at least one form of entrance and two forms of egress windows.
Some towns will even require at least one dedicated parking space for each rental unit, so make sure you become familiar with your local code.
This rental unit can appeal to prospective buyers who are looking to lighten the load of their mortgage. The tenant’s monthly rent would essentially be paying all or a portion of their monthly mortgage.
If you are adding the rental unit for a property you are holding onto, finishing the basement will greatly increase the cash flow of the property. While basement units do not command as much as above grade units, you will still be able to receive a significant income from a space that would have otherwise sat vacant.
6. Add Recreation/Storage/Guest Space to Home
Prospective buyers love to see a finished basement. Finishing a basement adds usable space to the home. An otherwise dark and dreary space can be transformed into a recreation area, kids play area, organized storage space or a little retreat for visiting guests. It is a pleasant bonus to buyers and they love the options that a finished basement gives them.