There’s a whole bunch of space under your home that you own that isn’t being used. It makes sense the utilize that space through renovations. However, many homeowners wonder “can a remodeled basement add value to my home?” and this can affect their decision to go ahead with renovations or not. First, we need to understand how a basement could add value to your home.
Knowing How Basements Are Valued
When an appraiser comes in they will value the home separately: above ground and below ground. The living space above-ground is valued separately from space below-ground. Space above-ground is worth more in the eyes of appraisers and this makes perfect sense as the price of finished basement space is considerably more inexpensive to add than above grade living area.
Some estimates for basements range from 50%-70% of an above ground value. Now remember to keep in mind there’s no exact way of knowing how much value it will add, that’s why we estimate. However, you may want to explore hiring professionals who can get you closer to an accurate estimate.
Different Types Of Basements
The different types of basements mean different levels of value added. Let’s explore some of those types of basements to see which one you have or what one you might want to go for in the future.
Partial Grade Drop. Another way to refer to this type of basement is garden level lot. The level of the land might not allow you a full-sized door but you may have some windows.
Full-Walkout Basement. This type of basement will provide the most amount of value to your home. It is also the most expensive since you can get full sized windows, doors, and even sliding doors. Most of the time these types of basements don’t even feel like basements at all. The walkout basement frequently allows for an excellent area to have a beautiful patio and stunning landscape features.
Non-Walkout Basement. This is the least attractive type of basement for home buyers. Since there is no natural light home buyers are that impressed with a non-walkout basement.
Don’t just trust one appraiser’s numbers no matter how good they look. When selling be sure to have a few appraisers run through so that you get an idea of what they would value the basement at. Talk to your realtor to see what their thoughts on the price should be and then come to a decision together. There are many factors to include in deciding the final price but don’t stress. Valuation is different for different buyers, one person’s trash is another…well, basement.