When considering a home renovation, a common question that arises is, “does a finished basement add value?” Homeowners in the Milwaukee area often wonder whether investing in their basement will offer a significant return when it comes time to sell. Whether you’re planning to stay in your home for years or are preparing to sell in the near future, basement remodeling in Milwaukee, WI can be a smart move.
But how much value does it really add? Let’s dive into the details!
The Truth: Does a Finished Basement Add Value?
Yes, finishing your basement can indeed add significant value to your home. On average, homeowners can expect to see about a 70% return on investment (ROI) when they decide to finish their basement. But, like all home improvements, the actual ROI can vary depending on several factors. The size of the space, the quality of the finishes, and how well the new space integrates with the rest of your home all play a role in determining its ultimate value.
Another critical factor is how you intend to use the space. Is the goal to create a family-friendly entertainment room, an additional bedroom, or perhaps even a rental unit? Each type of basement use offers a different appeal and, thus, different value when it comes to resale. If you’re in Milwaukee, working with a professional remodeling team like Pathway Design Build can ensure you get the most out of your basement remodeling investment.
Types of Finished Basements to Consider
Not all basements are the same. Depending on your property and local building codes, your basement could take one of several forms. If you’re wondering, “does a finished basement add value?”, here are a few types of finished basements to consider when planning.
Standard Lot Basements
These are the most common types of basements, fully below ground level. While finishing a standard lot basement can still add value to your home, these basements are often valued slightly lower than those with some exposure to natural light or ground-level access.
Garden Level Basements
Garden level basements are partially above ground, allowing for larger windows and more natural light. This type of basement is often more desirable due to the brightness and accessibility, which can increase its value compared to fully below-ground basements.
Walk-Out Basements
Walk-out basements are the crown jewel of finished basements. These basements have direct access to the outdoors and are usually at least partially above ground. The ease of access and the extra natural light make these basements feel less like a traditional basement and more like a full extension of the home’s living space. They tend to add the most value to a home.
How Do Appraisers Evaluate Finished Basements?
Appraisers take many factors into account when evaluating homes with finished basements. The most significant factor, especially in basements like garden level or walk-out styles, is how much of the space is above grade. Above-grade or partially above-grade basements are included in the gross living area (GLA) of the home, which typically results in a higher appraisal value.
For fully below-ground basements, the finished space might not be included in the GLA, but it is still taken into account when calculating the overall value of the home. Other important considerations include:
- Size and usability of the space: Larger basements with functional home design layouts and clearly defined purposes (like a guest suite or entertainment area) tend to score higher in appraisals.
- Quality of finishes: Higher-end finishes, like luxury vinyl plank flooring, modern lighting, and upgraded bathrooms, can significantly increase the perceived value of a finished basement.
- Natural light: The more windows and light sources in the basement, the better. Natural light can make the space feel more like the rest of the home and less like a basement, adding appeal for future buyers.
- Safety and code compliance: Features like egress windows, proper ventilation, and up-to-code wiring and plumbing can not only boost value but also make the home safer and more appealing to potential buyers.
How to Get the Most Value Out of Your Finished Basement
To maximize the value of your finished basement, it’s important to focus on key design elements that appeal to homebuyers. Below are a few expert tips to help you get the most out of your basement renovation:
Maximize Lighting
One of the biggest challenges in basement remodeling is making the space feel bright and welcoming. Maximize natural light by installing larger windows if possible, especially in garden level or walk-out basements. If natural light is limited, consider recessed lighting or strategically placed lamps to brighten the space. Bright, well-lit basements tend to appeal more to buyers.
Keep the Space Open-Concept
Wherever possible, design your basement to be open-concept. An open floor plan allows flexibility for future homeowners, whether they want to create a family room, gym, or office space. Open-concept layouts tend to feel more spacious and inviting, adding to the overall value of the basement.
Add a Full Bathroom
One of the most impactful upgrades you can make to a basement is adding a full bathroom. A finished basement with a bathroom provides more convenience and can even serve as an in-law suite or guest area, making it a strong selling point for prospective buyers.
Keep the Ceilings as High as Possible
Low basement ceilings can make a space feel cramped. If possible, keep the ceilings as high as local building codes allow. You can even consider creative solutions like recessed lighting or eliminating dropped ceilings to create a more open and comfortable space.
Select Comfortable Flooring
Choosing the right flooring is essential in making a basement feel like a natural extension of the home. Luxury vinyl plank (LVP) or engineered hardwood are popular choices because they’re durable, water-resistant, and add a touch of sophistication to the space. Carpet is another option for areas like family rooms where extra comfort is a priority.
Ensure All Required Local Permits Are Obtained
Skipping out on necessary permits can be a costly mistake. Not only can unpermitted work reduce the value of your home, but it can also lead to fines and complications when it’s time to sell. Working with a professional contractor like Pathway Design Build ensures all your renovations are up to code and that proper permits are in place.
Turn Your Lower-Level Dreams into a High-Quality Reality!
So, does a finished basement add value? Absolutely! A well-planned basement renovation can increase your home’s living space, provide a substantial return on investment, and enhance the overall appeal of your property. Whether you’re creating an entertainment hub, an additional living space, or a guest suite, a finished basement offers flexibility and value that future buyers will appreciate.
Ready to add value to your home with a basement remodel? Contact Pathway Design Build today for a free consultation on your basement remodeling project in Milwaukee, WI. Our team of experts will help you design and build a finished basement that meets your needs and boosts the value of your home.