More Space, Better Resale Value: What You Need to Know About Basement Finishing

A finished basement is a way to boost your home’s resale value at a fraction of the cost of building or expanding. While they certainly pose risks, including leaks, flooding, and mold, most of these hurdles can be avoided with a little research and planning.
According to a survey conducted by the National Association of Home Builders (NAHB), completed basements have become one of the most popular renovation projects of the past two decades. After kitchen and bathroom renovations (about 80%) and additions (40% to 50%), about 30% of contractors report that this is the top request from homeowners. Many home experts attribute this to today’s volatile housing market.
“Moving is not an option right now for a lot of people,” said Karen Vidal, Los Angeles-based partner at Design Vidal. “They want to squeeze the most out of their current home.”
Basement repairs in most homes take one to two months and cost between $50,000 and $75,000, according to Vince Butler, a former NAHB chairman who works for the Butler Brothers in Clifton, Virginia. The extra costs are usually twice as high, but the ROI is lower because they add less space. This year’s Remodeling Magazine’s annual Cost and Value Review reports that the average cost of a basement renovation project is $71,000, with an estimated potential added value of $50,000. Butler calls basements the “low-hanging fruit” of home improvement. “They’re pretty basic, the bone is usually there and it can be knocked out in the summer.”
“You already have floors, walls and ceilings. In most cases, you just add trim to existing boxes,” says James Crisp, director of Crisp Architects in Millbrook, New York, who helps clients turn their basements into gyms, a wine cellar, a bar, a soundproof games room, and the state government. Modern home cinema.
“As long as you have a license, you can do just about anything,” he added. “Really, the only thing you can’t do is tanning beds.”
If you’re planning to remodel your basement, you’ll need to hire a contractor to check your plumbing and heating system, identify any red flags, and help you calculate the numbers. It can be tricky, so here are some key points and tips on how to make the most of a dark and messy room.
First, it’s a good idea to familiarize yourself with local building codes, even if you’re considering hiring a professional to carry out the project. Different types of repairs require different permits and checks, so knowing the rules will help you set realistic deadlines. For example, in most counties, adding a kitchen, bathroom, or bar requires a zoning permit in addition to a building permit. Check the recommendations on your county website. (Tip: Getting building permits can be very time consuming, which is why many homeowners ask their contractor, designer, or architect to apply on their behalf.)
If you’re planning to turn your basement into a rental space, be prepared to meet a separate set of requirements that include at least a separate exit or “exit point” and a bathroom. Crisp calls the difference in cost “a huge jump,” especially when you consider how renters affect your mortgage rates and taxes, as well as regular maintenance. Bruce Wentworth, owner of architecture firm Chevy Chase Wentworth, said clients “often don’t realize how difficult it is to legalize an apartment.” “I tell people that it’s only worth taking on long-term leases,” he said. “If not, then leave it to yourself.”
A home office is not a difficult task, depending on how much traffic you expect. Katherine Gruver led the rethinking of Equestrian style two years ago when century-old architecture firm Gruver Cooley moved from an uncomfortable office in Leesburg, Virginia to a 1,400-square-foot open-plan family basement near Middleburg.
“There were no areas in the old space where we could work together, so this was an opportunity to solve that problem,” she said. In fact, Grover advises anyone in the repair business to ask two questions to stay on track: what’s not working and how can I fix it?
The walls of Gruver Cooley’s new office are lined with custom-made cabinets that double as desks. In the center of the meeting room is a large round table, which is suitable for meetings and creates the feeling of a family dinner. Grover used light-colored paint to make the space airier and added a $7,000 breakfast bar and $18,000 full bathroom for resale flexibility. In total, the project cost $73,000, or about $52 per square foot. She estimates it will be closer to $75 per square foot, but trade discounts and a long list of home contractors help keep costs down.
Her favorite trick: splurge on small areas like the chandelier or the shower floor. “You need less stuff so you can choose the best,” she said.
The basement can be a great recreation room for families who need a private place for their children to play. Some designers have found clever ways to up the ante. In 2010, Brookville, NY-based interior designer Melanie Morris converted her basement into an indoor hockey rink for her three sons, aged 7, 11 and 13. Lockers are hidden in the surrounding walls, and the “skating rink” is made of molded rubber, a non-standard replacement for rubber pads.
“Basement floors should never be an afterthought,” she said. “Don’t make this mistake. It has to be able to withstand leaks, flooding, condensation… if you have children, it must be able to withstand shock.”
Regardless of what you plan to do in the room, Crisp agrees that waterproof floors and, ideally, a dehumidifier are essential. Since basements match the temperature of the surrounding ground, hovering around 55 degrees, a humid summer can mean heavy condensation, which can warp the wood over time. He recommends installing a moisture barrier over the concrete, or using wood-look tiles over the concrete. Gruver uses vinyl flooring that is waterproof, durable and economical. “If it scratches, you just take that board off and put in a new one,” she said.
The designers sound cool and cool, and it’s hard not to wonder if the basement won’t test their patience. Aside from variable floors and leaking plumbing, most basements have low ceilings (7 feet average) and little natural light. Subtle, understated furniture can make a room feel more spacious, and if adding windows is too expensive, add lighting throughout the area with downlights, sconces, and track lighting.
Finally, almost all cellars are interrupted by at least one bulky beam or internal column, usually in the middle of the room. If this applies to your basement, whatever you do, don’t clean it. He maintains your home. Instead, follow Wentworth’s lead and use strategic embellishments to deceive the eye.
In 2011, when he was hired to turn the basement of a 1920s Woodley Park rowhouse into a play space for a State Department family, he had to design around two awkward beams flanking a planned seating area. As a solution, he covered them in drywall, along with some of the surrounding pipes, ducting, and wires, to make them look like structural columns. He then painted them charcoal gray and overlaid them with thin planks of birch plywood for architectural style.
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