The most significant benefit of buying a home with an unfinished basement is the flexibility to expand your space as your family grows or if you need to add a home office. You can buy a starter home and then expand it into a large family home. A basement remodel investment can add 2-bedrooms, a great room, and a bathroom! Some homes can double the square footage when including the finished basement.
Maybe you purchased your home, and the kids and adults were outside of the house for 10-hours each day, meeting back together for dinner and sleep. But now everyone is home all day: working from home, doing school work from home, exercising at home, taking violin, dance, and art lessons from home. The space that you thought was roomy and perfectly adequate has now become cramped.
While a basement remodel investment can give a significant financial return when you sell your home, it also can save your sanity. Give your family the gift of extra room this holiday season. If the need has arisen to have a home office or an extra common room for the kids to spread out and decrease arguments, the good news is you don’t have to look for a new house. What a relief to not have to pack up all of your boxes, change neighborhoods, and even schools or commutes. Finishing your basement will fix your space issues while allowing you to stay in the home that you love.
ROI for Finished Basements
When you realize that you need more room in your home, an unfinished basement is much cheaper than building an addition. Your basement will often have structures and walls in place, including drywall and insulation to keep energy costs down. Basements often include windows that don’t need restructuring if you are looking to add bedrooms in your renovation project.
It is estimated that for every $1,000 you spend on your basement remodel investment, you will get $700-$750 in return. When you increase the square footage in your home, then your home price automatically increases because the total liveable space increases. On top of that, you add the alluring value of an increased number of bedrooms, recreational area, or home office space in the home.
The great thing about a basement remodel investment is being able to enjoy the increased liveable space in your home. And when the time comes to sell, you can reap the benefits of a significantly increased sale price. Your return on your investment is multiplied when you get to enjoy the renovations that are made years ahead of selling your home.
When You Sell Your Home
If you speak to a realtor, you can look at a cost vs. value report regarding your basement remodel investment. It is an initial large sum of money that you need to finish the walls, add bedrooms, doors, a bathroom, paint, and furnish the new space. It may be overwhelming to enter into such a project. With the right contracting team, you can keep costs low while increasing the square footage of your home. You can calculate what you paid for your house and consider your home’s increased size from a basement remodel investment. You will clearly see how you will get your return on investment when it comes time to sell.
Think about the benefits that came with purchasing your home with an unfinished basement. You were buying it with flexibility and expansion in mind. Now that you are the owner, you can do something about it. It is so easy for time to pass without taking action on your basement remodel investment. Now is the time better than any to hire a contractor and move forward with the process. You can take those ideas of expansion and make them a reality. Imagine the space that potential buyers will see in the house when they tour it. A finished basement that provides extra bedrooms, another bathroom, and a large room will give your home a leg up in the neighborhood.
There are investments in your home that you can enjoy while you live there, and you may not see the return when it comes time to sell. But when it comes to a basement investment, you automatically benefit from the increase of square footage alone. And then when you add the extra bedrooms and bathrooms that go into calculating the value of a home, you have an abundance of profit.
While You’re Living in Your Home
It is a great idea to be making home improvements continuously. It would be best if you always were looking for ways to improve your space. This can include adding a home office, knocking down a wall to create an open floor plan, or utilizing the basement space. A makeshift gym or storage space in an unfinished basement can be tolerable. But if you want to maximize the value of your home while you’re living in it, then a basement remodel investment is not something you’ll regret. Walking into a home gym with finished walls and soft flooring will increase your quality of life.
When everyone seems to be spending their lives inside their home right now, including working from home, then a home office is an investment you won’t regret. When you build your home office in the basement, you are choosing a quiet space that is ideal for virtual meetings and being alone with your thoughts to promote creativity and productivity.
Another big reason why someone chooses to remodel their basement is to offer a mother-in-law suite. If you have an aging parent who needs a space of their own while living close to family who can care for them, finishing the basement can be the right solution. This would include building a kitchenette and a bathroom with mobility in mind, including a walk-in shower. When you have a beloved senior in your life come and live with you, the basement can offer just the right amount of independence for both of you.
If you are finishing your basement for someone you know, it may be helpful to get their input on preferences. Maybe they have a favorite sitting chair that would make them feel more at home to bring along. If you take their interests into account, it can be a good starting point for designing your remodel. Here are some other features to consider when building a mother-in-law suite in your basement:
- Outdoor exit
- Fresh airflow
- Walk-out patio
- Comfortable carpet
- Full kitchen vs. kitchenette
- Speaker system
- Natural light
Add a Bedroom or Bathroom
When you are finishing your basement, you can think of what is best for your needs, like a theater room or a home gym. Also consider prospective buyers when building out the space. It may not be essential to your family to have a pool table room or a giant storage room, but consider what may be valuable to add when planning out your basement remodel investment.
When you add a bathroom to the basement, it can only help your investment. Even if you initially don’t think an additional bathroom is needed, think again. Having a bathroom solely for guests when they come to visit can be convenient. Or, when your kids grow older and spend hours getting ready in the bathroom, it may be nice to have another bathroom with a vanity to spread out the teenagers.
For a room to be considered a bedroom, it needs to contain a window and a closet. The window needs to be big enough for a firefighter to climb in and out. It may take hiring a contractor to cut out a bigger window in order to qualify the room as a bedroom. This will only add natural light to the space while increasing the number of bedrooms when you list your home for sale. Potential buyers will love an extra bedroom with a closet to use as a craft room or a guest room.
Other ideas when building out your basement may include:
- Recreation room
- Home theater
- Storage room
- Second kitchen
- Wine cellar
- Home gym
- Bar and mini-fridge
Get creative with your basement design and include rooms specific to your family that can easily be converted to standard rooms that are enticing to future families that will live in your home. If you are unsure what to do with some of the space as you are planning your basement remodel investment, then meet with a contractor. You can get all of your questions answered and gain knowledge from experts in the business. Proper research will help get the ball rolling and arm you with the knowledge you need to get the job done right.
Potential Income Property
We have been discussing how you can enjoy the benefits of your investment in your living space by enjoying the comfort, flexibility, and extra room. You will see the financial profits once you sell your home. But there is a way that you can enjoy the monetary advantages of a basement remodel investment while you’re still living in your home. And that is by renting out the space.
Many people rent out their basements to local college students, missionaries, newly married couples, or elderly couples. Long-term tenants can bring reliable income to help you quickly get your return on your basement remodel investment. When considering this route, you would need to include a second kitchen in your basement to house a second family in the basement comfortably. It would also be sensible to add an outside exit down in the basement. You don’t want strangers having to walk through your space in order to go in and out of their apartment.
Another option to consider is a short-term rental. With the rise of Airbnb and HomeAway rentals, you can charge a significant amount for 1-3 days stay. If you get three interested occupants each month, that money can quickly grow greater than the amount you would get with a long-term tenant. The advantage to short-term rentals is you don’t have to provide a kitchen. But the downside is marketing and keeping a steady influx of occupants.
The Best Basement Contractors in New Jersey
Out of all of the home improvements to make in your home, refinishing your basement is the best one to choose that will give you the most significant return on investment. And while some renovations such as backyard and outdoor painting need to be saved for the warmer months, a basement remodel is ideal for winter. Because all of the work is done indoors, contractors can efficiently work on your project, rain or shine. Their services are in less demand, so prices are lower. You won’t have to squeeze into a busy schedule that occurs during the spring and summer. Winter is the right time to finish your basement.
When it comes to a basement remodel investment, you want to choose the best contractor team in the business. There are so many details to go over, including bedrooms, a bathroom, layout, hallway, storage, and the great room specifics. You want to choose a company that has expertise in the industry and is willing to communicate every step of the way. With our transparent pricing, there will be no surprises along the way. Our organized schedule will keep our team right on track with the estimated timeline. We know precisely what frustrates the customer when it comes to contracting projects, and we will save you unneeded stress. Here at Tandem Contracting, all of your basement needs can be handled by our one-stop-shop. Our contractors can take on electrical, plumbing, restructuring, windows, painting, and all other needs that are associated with a basement remodel investment. When you hire a team to remodel your basement, you won’t have to worry about permits and equipment. Our connection in the industry will get you unbeatable prices on materials. If you have any initial questions or are looking for an estimate, contact us today.