Basement Remodeling: Enhancing Home Value and Comfort

Looking for the next home project that offers maximum return for minimal investment?

Your solution lies below ground.

You might think it’s just wasted space. Dirty and damp, nothing more than a place to store holiday decorations and leftover boxes. But when it comes to adding value and comfort, it might be your greatest untapped resource: the basement.

Fact is, finished basements are hot. According to recent statistics, 86% of basement conversion costs are recovered when homeowners sell, so the money you put into remodeling that lower level can quickly pay for itself.

And not just at resale, either. You and your family get to enjoy that extra space while you own the house, too. We’ll show you how to make smart choices so basement remodeling services work to your advantage.

In this post:

• The Real ROI of Basement Remodeling Projects
• Smart Design Strategies That Maximize Value
• Essential Systems Every Basement Needs
• How To Avoid Costly Basement Remodeling Mistakes
• Making The Most of Professional Services
• Wrapping Things Up

The Real ROI of Basement Remodeling Projects

Right off the bat, let’s get something clear:

Cost vs. value is the only ROI that matters to homeowners. In other words, how much money does a basement remodeling project pay you back in terms of increased home value?

The answer, unfortunately, is almost never 100%. But if you play your cards right, a basement project can deliver a very strong return on investment.

As you can see in the graphic below, the national average for basement remodels hovers around 70 to 75 percent.

In your specific region, it could be even higher, especially in tight housing markets; however, if you’re in Oregon, search for basement remodel Portland Oregon and you’re sure to find an affordable option.

However, what’s important to note is that the return on basement remodeling investment doesn’t start when you sell. You start reaping the benefits as soon as the work is complete.

In fact, a finished basement delivers immediate value. The extra living space and storage capacity improve your family’s daily life right away.

The math is simple: A $50,000 basement remodel will add $35,000 to $40,000 to the value of your home.

Look at it another way:

Moving to a larger home means realtor fees, moving expenses, and higher mortgage and tax payments on the front end. A basement project puts more livable space in your pocket without those ongoing overhead costs.

Smart Design Strategies That Maximize Value

Some basement remodeling projects net you more than others. The key is designing for universal appeal and maximum functionality.

In other words, a space that a wide range of buyers will want and that serves your family’s needs now.

As we mentioned, open floor plans continue to be the most valuable in the basement.

Instead of subdividing the space with lots of walls, go with wide-open areas that flow from room to room naturally.

Buyers like open floor plans because they can more easily imagine themselves in the space. If your basement is crammed with walls, it narrows their vision and imagination.

By far, the most valuable lower levels include at least one of these elements:

• Large family or recreation room
• Home office or study space
• Guest bedroom with egress
• Full bathroom for convenience
• Wet bar or kitchenette for entertaining

Smart basement owners also build in proper lighting and climate control from the beginning. After all, nobody wants to use a basement that still feels like a basement.

Pro tip: Try to match the new basement space with the architectural style of the rest of the home. Consistency trumps fancy materials when it comes to adding value.

Essential Systems Every Basement Needs

If you haven’t hired a pro for a lower level project before, be ready for some “aha” moments.

Basements have particular characteristics that homeowners often forget to plan for.

Moisture is the most important issue. Water problems, even minor ones, become much bigger once you cover them up with finished walls and flooring.

Homeowners who use professional basement remodeling services know to start every job with an inspection and a moisture mitigation plan.

This includes all the following elements, as needed for your property:

• Drainage system
• Waterproof barrier
• Dehumidification system
• Vapor barrier in walls and floors

Electrical and HVAC upgrades are also key. Most basements weren’t designed to be livable, so you have to add in adequate lighting, outlets, and temperature control.

Safety is another consideration. Basement bedrooms need emergency exit windows, for example.

Ceiling heights, stair railings, smoke detectors, and other details have codes that vary by state and city.

Skipping these details will cause issues during and after construction.

How To Avoid Costly Basement Remodeling Mistakes

One of the biggest basement remodeling blunders we see is biting off more than you can chew.

Picture the overly eager homeowner who imagines a super entertainment center in the basement.

Luxury finishes, custom wine cellar and home theater…way to blow the budget.

Talk about living with a construction zone for months. Years, even.

Phase the project, starting with the essentials:

• Moisture control
• Electrical
• HVAC

You can do flooring, walls, and basic lighting before moving on to finishing touches.

In fact, wait until you’ve completed these major systems and actually started using the basement before going further.

Don’t overdo it on the fancy stuff. You can add bells and whistles later. Probably cheaper, too.

Another money pit mistake is underestimating some of the unsightly, behind-the-scenes aspects of a basement remodel.

Not only does it have to look good in the end, but the invisible stuff is what makes or breaks the investment down the road.

• Quality insulation
• Proper subflooring
• Adequate ventilation
• Professional waterproofing

Nothing trendy, either. You know how popular ideas and finishes can go from hot to dated overnight? Stick with the tried and true.

Finally, make sure you factor in the price of permits and inspections.

Professional basement remodeling services include these in the costs upfront, but DIY homeowners often get caught by surprise.

Making The Most of Professional Services

Look, we get it. Basement remodeling services often seem like one of those “trust me, I’m a professional” industries.

Just who can you trust, anyway, when it comes to working below ground?

The answer, as usual, lies in knowing who to hire.

Get references, check out online reviews, and talk to past clients.

Get in-person estimates, and take the time to really study the bids. The very best contractors can explain the numbers as well as the work involved.

The price alone should never be the determining factor, as there are too many pitfalls in basement remodeling projects for bargain basement shopping.

You want pros who:

• Specialize in basements
• Have proper licenses and insurance
• Provide detailed, written bids
• Show past finished work
• Understand local building codes and inspections

Wrapping Things Up

If you want to improve your home’s value and comfort, don’t forget the basement.

Finishing your lower level is one of the best ways to get that space you need without breaking the bank. Done correctly, a basement project will also give you a solid return on investment.

Most of the key to basement remodeling lies in strategy. Plan for maximum return and minimal issues by:

• Starting with essentials like systems and moisture control
• Designing for maximum functionality and future resale value
• Partnering with professional services that get it done right
• Phasing the work to save money and manage disruption

The cost of basement remodeling? The real number is what you take away after the job is finished.

Add up the money you see in your bank account versus the new space you gain for your family.

Done correctly, basement projects return 70 to 86 percent of the cost of the work at resale. That’s better than most other home improvements, and definitely better than moving to a bigger home.

But it doesn’t stop there.

Basements are about more than dollars and cents, they’re about quality of life.

Finished basements create more room for your family to grow and enjoy the home you already love. They offer storage you can actually use, and extra space that works for you.

Whether you plan to stay in your home forever or sell next year, the basement is one project you don’t want to skip.

Ready to start planning? The sooner, the better.