Does Finishing a Basement Add Value?

There’s no doubt about it—basement finishing adds value to your home if you play your cards right. Unused basement spaces are a missed opportunity for creating a usable space that increases your home’s marketability while providing extra room.

Let’s break down just how much return on investment (ROI) you could see and the best ways to increase your home’s value with a brand-new, finished basement.

How Much Value Does Finishing a Basement Add?

A finished basement has an average ROI of between 70% and 85%, though some projects may result in an ROI of up to 100%. Since basement finishing costs range from $7,500 to $50,000, you could see an average ROI of $5,250 to $42,500 when it comes time to sell.

4 Finished Basement ROI Factors

The type of basement, the layout, your location, and the quality of the project can all play roles in your basement’s ROI. Let’s see how each factor impacts the value of your basement.

1. Type of Basement

There are four main types of finished basements, and the one you choose could seriously influence your basement’s value.

• Partial Basement: A partial basement is smaller than the footprint of your home’s main level and typically has a lower ROI due to its smaller size.
• Full Basement: Full basements serve as additional spaces, ranging from family rooms and bedrooms to gyms and kitchens and any other combination customized to suit your needs. The space is usually the same size as your main floor, as it shares the same footprint. This gives you more ways to make use of your finished basement, leading to a higher ROI than a partial basement.

• Walkout Basement: If you live on a hill or have a basement that’s partially underground and partially at ground level, you have the option of creating a walkout basement. These basements may cost more to finish, but their impact could lead to a major ROI because they increase natural lighting and accessibility to your home.
• Storm Shelter: Depending on where you live and the demand for storm shelters, finishing your basement by creating a storm shelter can yield a high ROI ranging from 85% to 100%. You may even be eligible for funding of up to 75% for a residential safe room through the Federal Emergency Management Agency (FEMA).

2. Basement Layout

The ceiling’s the limit when it comes to creating your basement layout. To make the most of your installation, consider working with an interior designer for an integrated, functional space that ticks all the boxes of what you and prospective buyers could want in a basement.

3. Location

Some regions of the country value finished basements more than others. If you live in the Pacific region, you could see an ROI of 86.4%, whereas New England residents may only see a 52.8% ROI. Here’s the average finished basement ROI by region based on Remodeling’s 2017 Cost vs. Value Report:

4. Project Quality

Finishing a basement yourself could save you money upfront, but if it’s not done well, you could see a loss in your ROI. It’s best to work with a professional basement contractor for a high-quality, finished basement.

Is Finishing a Basement Worth It?

Finishing a basement is a personal investment that many homeowners find beneficial—but it’s not for everyone. If a project of this caliber is beyond your budget or maintenance, no ROI will make it a feasible investment. However, if you need more space for your family members, storage, guests, and hobbies, a finished basement could be the perfect addition to your home.

Trust Ohio Basement Authority for Your Basement Finishing Needs

Basement finishing is a significant undertaking, but you don’t have to go through it alone. You can trust our experienced team at Ohio Basement Authority for sound advice, excellent customer care, and solutions customized to meet your needs.

If you’re ready to start your project, contact our team for a free inspection to get started with basement waterproofing and other essential services that set your basement and foundation up for success from the get-go.

Holly Richards-Purpura

Content Writer

Holly is a Content Writer for Groundworks who has written and edited web content for the foundation services industry for almost 10 years. With a background in journalism, her passion for the written word runs deep. Holly lives in Columbus, OH, with her husband. Along with educating homeowners, she also has a big heart for the Big Apple.

Related Resources

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How to Waterproof a Basement Before Finishing

Don't let basement water issues go untreated. If you do, your investment in finishing could go down the drain! Learn how to waterproof a basement before finishing it.

14 Basement Finishing Ideas

Once your basement is finished, there are several ways to use the space. View this list of 14 simple finished basement ideas.

_{The information provided in this article is for general informational purposes only and is subject to change without notice. We make no representations or warranties regarding the accuracy, completeness, or reliability of this information. We are not liable for any discrepancies in costs or specifications, nor for any indirect or consequential loss or damages arising from the use of this information. Always consult a professional for an accurate assessment and quote before proceeding with any home repair projects.}