Basement renovations are one of the few home improvements that pay you back in multiple ways. If you’re planning to sell your home in the next 2 to 5 years, you might be looking for ways to increase its value. Does finishing a basement add value? How much value will it add to the property’s price? Let’s explore the benefits, financial considerations, and key features that make basement renovation a worthwhile investment.
How much price increase can you expect?
Basement renovations typically give a 70% return on your investment towards construction costs. This means if you spent $100,000 on renovations, you can expect a $70,000 increase in the property’s selling price. Keep your budget tight and do not overdo the finishes or furniture because you will only get 70% of it back.
Only add features that bring the most value. Some additions that we recommend at Your Kingston Contractor include:
1. Full Windows – It gets quite dull and depressing during winters and anyone who lives in a basement faces the most of it. Adding windows will make it feel more like home rather than an underground room.
2. Open Floor Plan – Easiest way to make the space look large and welcoming.
3. Full Bathroom – Buyers appreciate the convenience of additional bathrooms, whether it is for guests or renting out the unit long-term.
4. Home Office or Den – A dedicated space for work or crafts always creates a good impression.
Are there other benefits of basement renovations?
Beyond monetary benefits, basement renovations improve your quality of life. Here are a couple essential benefits it offers:
- Increased Living Space: A finished basement means extra square footage that you can use as a guest room, home office, entertainment area, or gym. It can accommodate your growing family’s needs without having to hustle to find a new larger home.
- Potential for Rental Income: If local zoning laws permit, a finished basement can be converted into a rental unit, which will provide you around $1,800 to $2,500 in additional income every month.
Kingston’s rental market is competitive, and a properly finished basement with a separate entrance, egress window, and full bathroom can command the higher end of that range. Before budgeting for this, verify your zoning classification with the City of Kingston, since not all properties permit secondary dwelling units without additional permits or inspections.
How to increase your property’s ROI with a finished basement?
While your neighbourhood’s real estate trends dictate the ROI, there are some easy ways you can increase the property value by $4,000 to $10,000. Here are some of them:
1. Make Waterproofing A Priority
Water damage, mold, and mildew are all common basement issues in Kingston. We’ve heard endless horror stories about the basement flooding or new buyers finding black mold. Take care of it before you sell the property.
2. Install High-Quality Flooring
Opt for materials that are durable and moisture-resistant, such as luxury vinyl or ceramic tiles. Avoid materials like hardwood, which can warp and deteriorate in damp conditions.
3. Improve Lighting Throughout the Space
Basements can get depressing, so install adjustable lights and set up lamps in places that are dull. Bright, well-lit spaces are more attractive and can make the basement feel like an important part of the house.
4. Create Flexible, Open-Concept Spaces
Open-concept designs are often preferred as they make the space feel larger and more versatile. A potential buyer can envision different ways they can use the space and find that enticing.
5. Ensure Proper Insulation and Temperature Control
Basements are typically 10 degrees colder than the main level. Maintaining a comfortable temperature is important as it can lower energy bills. Properly insulated basements are more energy-efficient, reducing heating and cooling costs.
Frequently Asked Questions
1. Is finishing my basement worth it if I’m not planning to sell soon?
Yes, no question about it. Finishing the basement gives you more useable space, whether a cosy family room, home gym, an extra bathroom, or bedroom for your guests. You get to enjoy it now, and it still pays off when you sell.
2. Can I renovate my basement in winter, or should I wait for spring?
Winter works fine for basement renovations. Since most of the work happens indoors, weather won’t slow things down. Contractors often have more availability, so your project might finish faster. You might also get a discount on workmanship and off-season discount on materials.
3. How can I waterproof my basement before starting renovations?
Start by inspecting all walls and floors for cracks, then seal any you find with hydraulic cement or a waterproof concrete sealant rated for below-grade use. Test your sump pump by pouring water into the pit and confirming it activates and drains properly, and consider installing a battery backup in case of power failure during heavy storms.
Walk the exterior of your home and clear your gutters, then confirm that downspouts discharge water at least six feet away from the foundation. Before your contractor breaks ground on any finishing work, ask them to walk the space with waterproofing specifically on the checklist.
Ready to renovate your unfinished basement in Kingston? Get in touch with Team YKC today!
