In times of recession, it’s hard to know whether you should expand the living space you already have or buy something larger when you need more room. Though economists seem to think we’ve reached the bottom of the housing market and real estate values are beginning to recover in our state, now may be a good time to think about improving your home by finishing your basement, both to boost its value and enhance its livability.
Finished basements are an offering that many families are looking for today, and the extra resale value comes in handy when it’s time to sell. In Colorado, experts say that finishing a basement is two to three times more cost effective than any other option that adds square footage to your home. On top of that, you can expect to recoup 80 to 100 percent of the money you invest when you actually sell it.
Design is one of the most important factors to consider in making a good investment. No one enjoys relaxing or working in a dark, dank place like a poorly designed basement. In fact, now isn’t the time to cut corners if you decide to remodel. You want that traditionally cave-like space to become open, light and bright, if possible, and appealing to the largest number of buyers. Keep that in mind as you settle on your design plan and determine its final features.
A basement that’s well done grabs attention. Whether it houses an adult entertainment area with a bar and seating or play space for the kids and a gym for mom and dad, quality design is always appreciated. So have fun with it! Choose high-quality materials, appealing colors and complimentary styles. The more time and resources you’re willing to invest in what will be your new space, the more you’re likely to get out of it, both now and in the future.
So how much should you plan to spend on your basement to ensure you end up with a quality investment once it’s complete?
One rule of thumb is to plan on investing 12 to 25 percent of your home’s total value on a basement refinish. This amount can, however, vary greatly depending on the finishes you choose; what major systems need to be installed, repaired or replaced to make your basement livable; and how quickly you need the work completed.
Unique and expensive design features may cost you more now—but they can also help set your home apart so that the one special buyer you need a few years down the road feels they just can’t live without that awesome basement! Besides, just think how good you’ll feel knowing you didn’t scrimp on quality when you and your family can enjoy that new space together.
If you’ve got your heart set on a sports room to house and display all your favorite paraphernalia, by all means, enjoy yourself. However, don’t hem yourself in by making permanent changes you can’t change again later on. Remember, your goal is to appeal to as many potential buyers as possible, so you need to invest your money in areas that will pay off later.
It’s also important to make sure you stay in line with home values where you live. As long as you don’t already own the most expensive home in your addition or on your block, you’re likely to get back most of what you pay to make your basement enjoyable.
Finished basements are only good investments when owners either plan to remain in their home for many years, design it in a way that will cause it to command a higher price—or both. So add value to your life and home and put money back into your pocket. Request a free basement finishing price quote today.
Penny M. Hagerman is a communications expert and marketing professional living in Denver, Colorado. Penny lends her talents to businesses nationwide and enjoys helping them grow and prosper.