Whether improving your own home or remodeling a rental property, finishing a basement can deliver an excellent return on your investment. Remodeling this area can be a cost-effective way to increase the appraisal value of your home by as much as a whopping 70%. Here are three ways a basement renovation can add value to your home, and a few things to consider before starting:
#1: More Living Space
An unfinished basement is a blank canvas, ready to accommodate family and friends with just a little bit of elbow grease. Imagine taking an otherwise dark and uninviting space and turning it into a bright, welcoming guest retreat or a game room with all the bells and whistles, or even a home movie theatre. If your family would be thrilled to spend more time in the basement, chances are, so will a buyer or renter. And they will pay more for it.
Pro Tip: If you’re thinking about turning your basement into that spa-like guest retreat, bear in mind that in most towns, there must be two forms of egress and at least one closet to satisfy safety codes and meet requirements for a MLS-listed bedroom. (Be sure to ask your contractor about size requirements for basement windows.)
Also be aware that while closets are generally easy to build, egresses can be more complicated and often require breaking foundation walls to create or widen existing openings. These are all good reasons to consult with a contractor before starting a remodel.
#2: Additional Bathrooms
In general, more bathrooms mean higher property values. The difference in value between a home with one bathroom and two, for example, is huge. Not only will your family benefit from increased functionality, but it’s a good way to ensure your home sells quickly if you do put it on the market.
Pro Tip: If you’re not an expert plumber yourself, you’ll need to hire one. Don’t forget to include this expense in your budget. Also plan to spend money on fixtures and tiling if you choose to go that route. Remember, adding a bathroom is an investment in your home’s future appraisal value, so price shouldn’t be the only consideration here.
#3: A Finished Basement Could Greatly Increase Your Cash Flow
A basement renovation can turn a single family home into a multifamily rental unit. Not only can this lighten the load of your own mortgage but will appeal to prospective buyers who are looking to do the same. Although rental prices for basement units generally do not command as much as above grade units, a finished basement will still provide significant income from a space that would otherwise sit vacant.
Pro Tip: Be sure to check zoning codes in your area before beginning a renovation. Fire codes, entrance, egress and parking space requirements are important to consider as you plan and budget for your space. A contractor can be an invaluable partner in helping you navigate and satisfy these requirements.
Whether you plan to stay in your home for years to come, or are planning to sell in the near future, a basement renovation is a great way to add functionality and overall value to your home. If you don’t choose the DIY route, make sure you shop around for a highly recommended, experienced contractor, and definitely check out client reviews, ratings and feedback.
Are you ready to enjoy a finished basement in your Minnesota home? Iron River Construction is ready to help. Contact us today for a free consultation and quote.
