A finished basement is a wonderful addition to any Denver area luxury home, but whether or not it adds to the overall market value of a home depends on several factors. If you are thinking of finishing your basement to help sell your home, the following will help you decide whether the return is worth the investment.
When it comes to finished basements, you need to consider what type of space you will create during your renovation. Will you create additional bedrooms? Will it be a huge apartment designed for a teen, an elderly parent, or even a renter? Perhaps you prefer a recreational space like a theatre or game room. Any of these ideas are sound in theory, but you will get the most return on your investment when you create additional multipurpose rooms rather than a space designed for a single activity or concept.
Consider the Basement’s Structure
Another thing you should think about before spending the money to finish your basement is the overall structure of the space. If the ceiling height is very low or if the room lacks its own dedicated entry and exit, then potential buyers may not view it as additional living space at all. A walkout basement adds much more value than a basement that is only accessible through a set of stairs from the main floor. Along those same lines, if there is visible ductwork, or if the HVAC equipment is in plain view, potential buyers are more likely to see it as a utility or storage space than a living space.
Research the Other Homes in the Area
Another great indication as to whether finishing your basement adds market value involves looking at the location’s “comps”, or sales comparisons. Your real estate agent has access to these, and he or she can find out several pieces of key information through these comps. For instance, he or she can determine whether the most recently sold luxury homes in the neighborhood have finished basements. He or she can also determine how much those finished basements add to the overall value of the homes in the area. This information is crucial in determining whether you will see a return on your investment, or whether it will end up costing you money in the end.
The Importance of a Properly Finished Basement
Adding some carpeting and painting the walls might make your basement look nice, but it hardly constitutes a “finished” basement. You will need to consider things like waterproofing, heating and cooling, plumbing, and electrical work in the space. The goal is to create a space in the basement that mimics the living space on the main floors. Remember that potential buyers will need to see inspection reports, too, so it is important that you do all of these things up to code. Hiring professional contractors is the best way to go.
Whether or not a finished basement will add market value to your home depends on all of these factors, but remember that it all comes down to making your home appeal to the buyer. The best way to determine whether you should finish your basement prior to putting it on the market is to speak with a real estate agent who works with luxury homes in the Denver area.