Increasing Revenue in Your Home by Finishing the Basement

Increasing Revenue in Your Home by Finishing the Basement

Home buyers are on the hunt for houses with plenty of living space and finished basements to increase home value. However, homeowners should be careful not to go overboard in their basement finishing. 

If you plan on selling your home, a simple family room and a bathroom may be the best option. Adding more specialized rooms like a home theater or wine storage may detract from your home’s value. 

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Adding Value to Your Home 

When it comes to adding value, a finished basement offers a lot of potential. Home buyers look for a versatile space that can be used as a recreation room, kids’ play area, or organized storage. 

If you’re handy, finishing the entire basement yourself could save you a significant amount of money. However, if you’re not capable of laying flooring or framing walls to hang drywall, it might make more sense to hire professionals. Especially when it comes to the bathroom, a plumbing system can be very intense and it is important it gets installed correctly. After one is completed, hire a professional because plumbers can perform leak detection in Melbourne with the experience and equipment they have. 

Another way to add value is by adding a bathroom. Most homes only have one, and having an extra bathroom in the home is a big draw for many buyers. It does cost more to add a bathroom, but it will pay off in the long run. 

Lastly, finishing the basement can enhance energy efficiency in your home. Adding insulation and sealing air leaks in the basement can cut down on heating and cooling costs. This can be a major selling point for future homeowners who are concerned about rising energy bills. 

Adding a Rental Unit 

If you have a separate entrance to your basement, you can make it into a fully functioning apartment and add an additional source of income. It’s not uncommon to find basement suites that include a living and dining room, a bedroom, a bathroom, and a kitchen. Oftentimes, these spaces are painted neutral to appeal to a larger variety of tenants. 

If your basement is currently cold concrete or cluttered with off-season clothes and toys, it’ll require some form of insulation and drywall to be considered finished. It’s also important to install egress windows, as the residential building code requires bedrooms to have a point of egress. 

When it comes time to sell, your newly-finished basement will give you a significant advantage over homes without one. It will be easier to market and more attractive to potential buyers. You’ll quickly recover the initial cost of the renovation through rental revenue. In addition, you’ll increase your home value significantly and add extra living space without the expense of a major house extension. 

Adding a Second Entrance

Whether you use your basement as a home office, kids’ playroom, or an in-law suite, you should always enclose the space with drywall and insulation. This makes the room more pleasant to spend time in and helps to lower energy bills. If you plan to add a bedroom, remember that residential building codes require bedrooms to have a point of egress. This may mean adding a window or moving one that’s already there. 

You’ll also need to decide what the space will be used for. This will influence the design, layout, and cost of the project. For example, if you want to install a home theater, the room will need to be wired for sound and there’ll likely be a need for 

rewiring. Having a clear vision of what the basement will be before you start work will help to keep costs down and avoid future headaches and redos. This is especially true when it comes to materials. 

Making It a Suite 

If you have the space, a basement suite can provide a source of income for the owner. This income can be used to pay the mortgage, or if the homeowners decide to keep the property, it can be invested back into the house. 

A finished basement also adds a bathroom to the home. This increases the overall square footage of the home and can add value when it comes time to sell. 

Basements are typically away from the main flow of traffic in the home and can make a great location for a secluded room like a home office or den. A professionally-finished basement, that looks like it was a part of the original design and not just a DIY weekend project, will communicate to potential buyers that your home has been well cared for. 

Basement finishing is a complex and major renovation that will change the way your home functions. It’s important to consult a professional before starting any work to make sure that your plans will meet building code and zoning requirements, and are in line with what you want from the space.