Does Finishing Your Basement Add to the Property Value?

Posted by on Monday, January 13th, 2014 at 9:01pm.

If you're thinking of finishing your basement you're probably interested in finding out how much of the investment you'll see back on the resale of the property. It makes a lot of sense to finish a basement since it takes up about a third of your home’s total square footage. On the other hand, you will lose out on some of your investment when you go ahead and get your basement finished.

Approximately 2/3 of the money that you put into finishing your basement will be put back into your pocket upon the resale of the home. This means that you will lose about 1/3, but on the other hand a finished basement is a definite plus point when it comes to selling a house and may very well lead to a faster sale.

It's not always about the money

When you consider the 1/3 that you should be prepared to lose, it may not be that much when you consider the benefits that a finished basement will provide. If you are able to create more livable space and can use the area to your benefit for the next 10 years, it may still be one of the wisest decisions you'll ever make.

Would you spend $10,000-$20,000 to improve your living conditions? Most people don't have a second thought about spending this type of money on a car that will depreciate over time. If you need a spare bedroom in the house, want to add a recreation room or an office, the amount that you may lose in the investment doesn't really seem like much of a loss at all.

When it comes to finishing your basement, you'll need to look at it as a question. "Is your glass 2/3 full or 1/3 empty?" Sometimes finishing the lower level of your home is the smartest investment you can make based on the money you'll see back and the enjoyment you’ll get out of it for many years to come.

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