Financial security is important for every family. Not only does it make your bank account look nice, but it can dictate your emotional well-being and how you interact with everyone around you. With a possible recession on the horizon for the United States economy, you probably want some guarantee of financial security for you and your loved ones.
In this series, we’ve explored how you can find that security through remodeling your basement. Anyone who owns a home has a valuable asset in their back pocket and a basement with renovation potential increases that value even more. As the last part of this series, we’ll look at the cost breakdown of a basement renovation and how it boosts the value of your home, an important asset in the face of a financial recession.
Part 4: The Cost Breakdown of a Basement Renovation and How it Affects Your Home’s Value
The average cost to finish a basement is $55 to $65 per square foot. Of course, every basement remodel is unique and will cost a different amount depending on the current state of the basement and any complications that arise. In general, however, the average calculations mean that a basement of 1,000 square feet would cost approximately $60,000.
Every element of a remodel costs a different amount and it’s important you know the prices before you commit to that wet bar or fireplace you’ve always wanted downstairs. Here’s a breakdown of the different projects that you may need to or choose to do for your remodel.
- HVAC: $3,300 to $5,900
- Flooring: $6 to $10 per square foot
- Drywall: $1.60 to $2.35 per square foot
- Electrical panel: $850 to $1,700
- Interior painting: $1.50 per square foot
- Plumbing: $2,000 to $5,000
- Bathroom addition: $2,500 and up
- Kitchenette or wet bar addition: $3,000 and up
- Closet addition: $1,000 and up
So what kind of value are all of these renovations going to give you? The average basement remodel can have up to a 70% return on investment, according to Home Advisor. If you spend $60,000 on remodeling your basement, you would recoup about $42,000 when you sell your home. That 30% on which you don’t see a financial return will more than pay for itself as your family gets to enjoy the comforts of a finished basement.
When you’re looking to increase the value of your home with basement remodeling, you’ll want to think bigger rather than smaller. Potential homebuyers will pay more for a finished basement with a bathroom, kitchenette, and wet bar than they would for a finished basement that just serves as an extra family room. In a market that’s so heavily based on demand, these seemingly minor additions can make your home stand out from all of the others.
Adding a bedroom in the basement would increase the value of your home even more, as you could market it as a three-bedroom house rather than a two-bedroom, a four-bedroom rather than three, and so on. While creating bedrooms can be a more expensive undertaking because they have to follow certain building codes, you could see a much bigger boost in your home’s value.
Anyone concerned about an impending financial recession should start taking the steps to prepare today. Begin your basement remodel by calling the experienced professionals at Elkstone, Inc today. You’ll see the biggest increase in your home’s value when you have the professionals do high-quality work in your home.