Basement Remodeling: How to Get a Good Return on Your Investment
Are you hoping to remodel or finish your basement with flooring, ceiling, and extra rooms like bedrooms and a bathroom? Wondering how to maximize your return on investment or ROI?
One of the first things any homeowner wants to know is the potential return you could get for your investment. When you sell your house in the future, will the finished basement be worth putting more money on the home’s sale price, or will you end up eating the cost of that investment?
There are two parts to this question since basement remodeling often goes hand in hand with basement waterproofing. So, let’s break it down by parts:
- Waterproofing alone and
- Finishing the space to make it another living space in your house.
Basement Waterproofing ROI
If you’ve ever lived in a house with a basement that leaks, you know what a disaster it is. Not only can that flood destroy your belongings, but getting rid of the water can disrupt your life while dealing with the mess.
Then, there is the question of whether mold will grow once everything is wet. It’s not worth putting any money into finishing your basement unless you are positive there are no leaks.
Waterproofing your basement against leaks is the first step before you can consider any remodeling.
The good news is that it works in your favor if all you do is waterproof your basement. You can expect a 30% return on investment for waterproofing.
The bad news is that if you have a basement that leaks, it can be almost impossible to sell it until you fix it. An inspector is very likely to spot any evidence and tell the buyers to have you waterproof it anyway.
If you live in an area prone to sewer backups during heavy rains, you know it can make your life miserable with flooding in your basement once every few years.
There are ways you can keep floodwaters from your basement. However, it’s a more significant project involving re-grading your lawn in some cases. Ultimately, it might be worth it.
Finished Basement ROI
Once your basement is bone dry, it’s safe to make it into your new haven for parties, workouts, kids, and more.
The great news is that a dry, finished basement is worth about 75% of what you paid to remodel it. That means, if you spent $10,000 to finish it, you could expect to get an extra $7,500 from the sale price, as long as the space is finished for general use and not highly personalized.
Whether you use carpeting, tile, or hardwood, having a warm floor in the basement is a huge plus. It can help drive away the extra moisture you sometimes get with an underground room.
Rooms with plenty of light and space are a must-have in the basement, with neutral colors. A bathroom is a good idea in a large basement as it allows guests and bedroom occupants to be more comfortable.
Bringing it Home
You can be confident your basement remodeling investment will give you good returns as long as it’s waterproofed. Make sure the space is clean, bright, and neutral, and potential buyers will love it.
If you live in Southeast Michigan and have any questions regarding finishing your basement, please call. We would be honored to help.