Are you using your basement as a glorified storage unit? If so, it might be time to rethink what it could be.
If you have an unfinished basement, you’ve probably thought about what you could do with all that space. Finishing it could give you somewhere to host friends or accommodate family when they visit. You can also use it as a home theater or dedicated office space. But before committing to the work, though, you’ll want to know whether it’s a worthwhile investment. A finished basement can add value to your home, although you shouldn’t expect to recover everything you spend when you sell. How much you get back depends on the improvements you make and what similar homes sell for in your neighborhood.
This guide looks at the potential return on a basement remodel and how to decide what to spend.
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On average, homeowners recover about 71% of the cost of converting a basement into living space. So say you spend $150,000 on the remodel, then you would get back $106,500 if it performed at that rate. The exact value you get back will depend on your neighborhood and the features you add to your basement.
You can get a better idea of your return by looking at:
The features worth including depend on how you want to use the basement. A full bathroom makes sense if you plan to have overnight guests, while an open living area may be enough if you mainly want somewhere to watch movies.
| Basement Feature | What It Gives You | What to Work Through in the Design |
|---|---|---|
| Living or media room | Another place for the household to gather or watch television | Furniture placement around stairs and support columns |
| Half or full bathroom | Fewer trips upstairs and more convenience for guests | Existing plumbing and whether you need a shower |
| Guest bedroom | A private room for overnight visits or longer stays | Bathroom access and bedroom safety requirements |
| Built-in storage | Somewhere for belongings that would otherwise fill the room | What needs to stay downstairs once the basement is finished |
A basement living room can give your family another place to spend time without everyone sharing the main floor. Before deciding where walls should go, look at how your furniture will fit around the stairs and any support columns. A large sectional needs enough room for people to walk past it, and doors should open without bumping into furniture.
If you currently use the basement for storage, you’ll also need somewhere for the things that won’t belong in the finished rooms. Explore different basement layouts to see which ones would work for the setup you want.
A half bath may suit a room used for entertaining, while a full bathroom is more useful if someone will be sleeping downstairs. The location of existing plumbing can affect the installation cost. If your basement already has plumbing connections for a future bathroom, your contractor can check whether they suit the proposed layout. Putting the bathroom elsewhere may require cutting into the concrete floor to install drain lines.
A basement bedroom gives visitors a more comfortable and private space. It may also be useful if you need to accommodate a loved one for a longer stay. If you’re exploring remodeling ideas for aging parents, talk about how they would reach and use the space. Stairs could be a concern, and a walkout entrance is only helpful if the path to it is manageable. Your contractor will also need to check the requirements for a basement bedroom, including a suitable way to escape in an emergency.
A custom bar or home theater may be what got you interested in finishing the basement in the first place. If you’ve wanted one for years and expect to stay in your home, there’s a good reason to include it. Just be careful about how much of that expense you expect a future buyer to cover. Someone who rarely watches movies may see little reason to pay more for theater seating and a projection system.
You also don’t have to build the most elaborate version to get what you want. For watching games with friends, a comfortable seating area and a bar with a small refrigerator may do the job. Adding a full kitchen costs more, so it’s worth talking through whether you’d actually cook downstairs or mainly need somewhere to keep drinks and serve food. Of course, some features will depend on what your basement can accommodate as well. A golf simulator needs enough clearance for a full swing, and a theater beneath a bedroom may need sound control so people upstairs can sleep. Have your contractor review those details before you commit to a design.
You might assume that finishing your basement means you can add all that space to your home’s square footage. In an appraisal, though, finished basement rooms are counted separately from the rooms upstairs. This applies even to a walkout basement with full-size windows and a door to the backyard, since any level that sits partly below ground is treated as a basement. The appraiser documents the finished space, including bedrooms and bathrooms, and considers what it adds to your home’s value. So if you’re planning a guest suite downstairs, that work can still increase the appraised value even though the extra bedroom won’t appear in the above-ground room count.
Before you get into choosing flooring and cabinets, your contractor will need to see what’s going on in the unfinished space. A basement that’s dry and already has adequate heating and cooling will need different work than one that leaks whenever it rains.
Some of this work may take up part of your budget before you see much change downstairs. Have your contractor explain what needs to be repaired or upgraded and include those costs in the estimate. You’ll have a better idea of how much is available for the rooms and finishes you want.
The cost of remodeling a basement in this area typically ranges from $120,000 to $300,000 or more, depending on the features you want. Construction generally takes around two to three months, although some projects take longer. Design and permitting happen before construction begins.
The condition of your basement can also affect the price and amount of time it takes to renovate it. If you want a more basic finish with new flooring and better insulation, that will generally take less time and money than adding a home theater or full kitchen, assuming the same existing conditions. Moisture problems may require additional work before finishing can begin. You can review your remodeling goals and budget with your contractor to determine the best options for you.
To get estimates for your basement remodel, use our free Cost Calculator.
Before you start your basement remodel, check this list of the most common questions we get from homeowners in the Atlanta area.
If you’re moving soon, a full basement remodel deserves a close look before you commit. You may not recover enough of the cost to make the project worthwhile, particularly if you won’t have much time to enjoy it yourself. Look at recently sold homes nearby with similar finished basements to get a sense of what buyers have been willing to pay.
A door to the backyard can make downstairs more convenient, especially if you use the patio often. Guests can come inside without going through the main floor, and you have another entrance for bringing in furniture. Whether that access brings a higher selling price depends on the homes buyers are comparing yours with and how the basement is finished.
A bathroom gives people another reason to use the basement, since they won’t have to go upstairs whenever they need one. If you have a guest bedroom downstairs, a full bathroom also makes overnight stays more comfortable. It can contribute to resale value, though the amount you spend installing it won’t necessarily come back in full when you sell.
Yes. If you mainly want a living room and bathroom, you can finish those areas and leave the rest for storage. Your contractor can help arrange the rooms so you won’t have to walk through unfinished space to reach them. You’ll also need access to equipment such as the furnace and water heater for maintenance.
You may be able to, but check what’s allowed at your address before spending money on a rental setup. Local rules can affect whether you’re allowed to create a separate apartment and what work it would require. Adding a kitchenette and an outside entrance alone won’t establish that the space is approved for rental use.
A finished basement can add to your home’s resale value, though you’ll likely recover only part of what you spend. If you’ll be living there for years, think about how often you’d use the rooms. A guest suite that makes regular family visits easier may be worth the expense to you, even without a full return at resale. But before getting attached to a design, have your contractor look at the unfinished space. Find out whether repairs are needed and how much of the budget they’ll take. You can then price the rooms you want most and decide whether extras, such as a custom bar or kitchen, are worth adding. Bring a few photos of basements you like to your contractor and go over layouts you think could be a good fit.
Make sure you work with a licensed contractor who has experience finishing basements and can handle all of the design and construction responsibilities, so you can enjoy the process and watch your basement become a space your family will enjoy for years to come.
Our team at Silver Oak Remodel helps North Atlanta homeowners plan and build finished basements. We’ll look at the space you have and discuss the features you want, including what they could involve in terms of cost and construction. We invite you to look through our gallery of past work so you can see what we can do for your home.
Contact us to get started with a free consultation.