Transforming an unfinished basement into functional living space gives you the extra space you desire and can add value to your home. A basement renovation may also be an ideal solution when local zoning codes won’t allow you to build an addition onto your home but you really need more space.
How much value a finished basement adds varies based on several factors and your return on investment might fall short, but the extra space can be priceless.
Average Cost to Finish a Basement
Determining the amount a finished basement may increase your home’s value begins with figuring how much it’s going to cost to get the job done. Numerous factors go into the cost, including the amount of space you have to work with. A larger basement may inspire you to break it up into several rooms, including a bathroom, which is going to cost more than leaving it open for an at-home gym or family room.
Probably one of the biggest factors is labor costs, which are generally higher than the cost of materials. If you’re a handy person, you might consider doing some of the work yourself to cut costs.
Certain jobs, however, require a professional. For example, if you’re adding new electrical service, you must hire a licensed electrician. Adding a bathroom may also require hiring a plumber if you’re not up to this task.
Do some research and you’ll learn the average cost to finish a basement is generally $25 to $50 per square foot. However, depending on how extensive the renovation is, costs can run as high as $90 per square foot. Talk to the basement renovation experts at Element Remodel Design Build to get a more accurate quote for finishing your basement based on your vision for the space. Ideally, you want to pay for your project without taking on debt, so get quotes from several contractors to compare prices.
ROI Might Not Equal Cost
Finishing your basement will add value to your home, but it won’t be the same amount per square foot as the living space above ground. Because basements are evaluated differently, the return on your investment might not be as good as you hoped. It’s unlikely you’ll get back every dollar you invested in the project should you decide to sell your home.
On average, finishing a basement should provide a 70% to 75% return on your investment. Therefore, if it cost $10,000 to finish your basement and the average ROI in your area is 70%, then finishing your basement would theoretically increase the value of your home by $7,000. On the plus side, it’s cheaper to add living space to your home by remodeling a basement than by building an addition. If adding the same amount of space through an addition costs twice as much, then you’ve actually saved money, and the ROI on a home addition may still fall short of what you spent.
You can find various estimates online regarding the value of finished basements to get an idea of what yours might be worth, but remember, these are just estimates. Our Cleveland home remodelers are happy to provide an in-home estimate to give you a more accurate value for your basement renovation.
Hire a Qualified Basement Contractor
Basement remodeling transforms your home by adding much-needed living space without disrupting the current function and flow. Our basement contractors at Element Remodel Design Build can help you evaluate the space in your unfinished basement, then help you determine how this space can best serve currently unmet needs in your home. We’ll help you design the best solutions to make your finished basement vision come to life. Schedule a consultation through our contact form or call us at 330-523-6919 and learn how you can convert the extra square footage in your unfinished basement into the living space you’ve always dreamed about.