Trying to decide whether finish basement, partially finish basement or sell our home.
We bought our house at the bottom of the market, and have done many improvements including kitchen, bathroom, landscaping and facelift. We are in a great neighborhood with great schools, but it has one car garage, one bathroom, 1,000 sf. We considered finishing the basement and adding a bathroom down there but will cost 30-40,000. We have the money to do it but are concerned we end up losing money on the house in the end and wonder if we would be better off using that money to put towards a bigger house. Or would it be beneficial to just put a bathroom and some flooring in the basement to at least give it some appeal for buyers.
(0) | asked by: Stephanie Sallee Treon | share | 9 months ago | Report
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Viewing Answers 1 - 5 of 5
Hi Stephanie, My suggestion is to always consider the resale value of your home. With the amount of work you've already done to the home, you should be very careful about over-improvement. It's never a good idea to own the most valuable home in the neighborhood, because you're in essence raising your neighbors home values, while they are lowering yours. When it comes time to sell, you will get more for your home than your neighbors, but most probably not enough to cover the cost of what you have invested in it. Of course, the longer you stay in the home the more your cost vs. value will balance out. An experienced agent can provide a comprehensive market analysis for your home to see if it makes sense for your particular situation.
Stephanie: There are many variables that could effect the answer to this question; how long do you intend to stay; the value of your home and homes in the area; the type of finishes planned and their quality; etc. However, the rule of thumb is that you can get more value by investing in a larger home. Although, you live in a great neighborhood with good schools, spending $30-40,000 on a 1,000 sq ft home would most likely be a money loser. Vary rarely to you get dollar for dollar value for major improvements like that. However, if you plan to stay long, you may get value out of it through the utility you receive through the use of the extra space.
I recommend not to partially finish because it can't be used to its full potential and buyers may have to tear down to fit their needs which could ultimately turn them off due to the amount of work. Fully finished is always better but may be costly resulting in a loss when you sell. Best thing is to have a Realtor analyze the value of the home and decide if finishing is a benefit or better left for the buyer to do their own finishes.
Stephanie, This is a great question. The items you have already done are the most important items and appraiser looks at. The appraiser will lean more on those items to determine if the home is considered in poor, average or good condition. The basement is given some consideration, But nothing like a kitchen and bath on a main floor or second floor. Curb appeal is always great and helps with first impression. I personally do not believe in my opinion that if you put that much money into a basement that you would get it back. If you are considering moving in the next year or two then yes I would put towards another house. If you will be there at least 5 years, then you should do what makes you guys happy and if you can afford the expense, then do it as you never know what changes may happen after that. I hope this is helpful. Jack Starnes
I believe you should NOT finish the basement at all. You will not recoup your money at all. It just does not make any sense. Now, what you should do is clean out the basement completely and paint the floor. It is best if you use paint flakes and make the appearance of the floor much better.
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