Did you know that, according to Home Advisor, the average basement remodel can have up to a 70% return on investment? This makes basement renovations an attractive project for people looking to sell or flip their first home. With the added benefit of basements being a versatile space that you can turn into anything, upgrading your basement is an easy way to significantly increase the value of your home. If you’ve been considering finishing your basement, or just want some inspiration for your next renovation, check out these four basement remodeling tips.

Make A Budget

The first thing you should do when you decide to remodel your basement is make a budget. A good rule of thumb for basement renovations is to not spend more than 15% of your home’s value on the project. For example, if your home is worth $100,000 you should not spend more than $15,000 so that you can still make a profit off the value you’re adding to the home. It’s also a good idea to assume an extra 10% of the budget will go toward unexpected expenses that arise during your renovations.

Create A Family Room

A family room is the most versatile space you can turn a basement into. Basement family rooms are perfect for a home you’re flipping if you are unsure of the demographic you want to target. The obvious benefit is that it gives families a space to spend quality time together, but it can also be used for entertaining as it pairs perfectly with a home theater. You could even take this one step further by adding a wet bar in the space, though it’s important to know that this may appeal less to families with small children.

Add A Fireplace

According to the National Association of Real Estate Appraisers, incorporating a fireplace into your renovation plans can increase the value of your home by up to 12%. A fireplace could also be a highly sought after feature for buyers in colder climates. The best feature of having a fireplace is that you don’t necessarily have to light fires in it. If you don’t want to worry about the upkeep of using a fireplace, it can be used as an elegant decorating tool. You can place beautiful white logs for display in the pit, add a marble finish, or create a fake fire to have the same allure as a real fire.

Add A Bedroom

Depending on the size of your home, adding an additional bedroom in the basement may be your best renovation option, and it could increase the value of your property by up to 11%. You could choose to make this bedroom the new master bedroom, or you could create a bedroom-family room combo by adding a wall.

Add A Bathroom

The addition of a bathroom to your home could raise the value by up to 10%. In most basement remodeling projects, you will still have enough room in your basement to also add a bedroom or an entertainment area.

Final Thoughts

Choosing to take on a basement remodeling project can significantly increase the value of your property, as well as provide with you a nice space to entertain guests and spend quality with the people you care about. Your basement is a versatile space, so you can add in a variety of features like a home theater, bathroom, and wet bar. As long as you stick to your budget and have a plan for the space you want to create, your renovation project will pay for itself when it comes time to sell your property.