Basement Finishing – Will I Recover My Costs?
One question that always seems to come up before making the final decision to start a basement refinishing project is:
How much will I get back in my basement finishing costs if I ever sell my house?
This is a difficult question to answer and depends on a number of factors, including where you live, economic factors, whether you underpaid or overpaid for your basement, and the quality of the basement finish. We’ll discuss some general $$ figures in a bit, but first let’s explore one of the most important factors that will contribute to the value of your project.
The quality of construction and finishes on your basement refinishing project plays a large role in the value you can expect to recover. Take a look at the “For Sale” listings in your area. One thing you’ll start to notice are words like: “Professionally Finished Basement,” or “Professionally Remodeled Kitchen,” or “Professionally Updated.”
It doesn’t take a genius to see the prevailing message in those statements… The work done here is: “Professional.”
Buyers want a professional finish. Simple as that. When it’s time to sell your home, the basement refinishing efforts you put in will be undermined by sloppy work.
In many construction circles, sloppy construction is known as “the handyman’s special.” This is not to belittle any number of skilled workers, but it does point to a problem in this business.
Many handymen start out doing maintenance work and eventually decide they can tackle any number of more difficult jobs. This includes remodels, new homes, and maybe even your basic refinishing project!
The biggest difference between the basement refinishing professional and the handyman is the way they approach construction. A handyman figures that he can do almost everything on his project. From framing to drywall to plumbing to painting, he’ll tackle almost any part of the basement, convinced he can do as good a job as a professional electrician or professional drywall installer.
The problem is that no one who glues drywall or tiles a couple of times a year can be as good as a professional who does it five or six times a week, 52 weeks a year.
In my humble experience, you’ll get much more value (both in your satisfaction and potential resale) from a base refinishing professional who specializes in construction management. As a construction manager, you won’t be the jack of all trades, but will arrange work as it is done by specialist tradesmen who are experts in their respective fields.
In terms of resale value, it maximizes your potential to recoup construction costs if your finish is top-notch professional work. The cost of 2009-2010 vs. The Value report identifies the average resale for all types of remodeling projects. In 2009, they reported that a 640-square-foot basement with a wet bar and bathroom would command $46,825 in resale value, or about $71 per square foot.
You may want to extrapolate this information to fit your own particular situation. If you have a 900 square foot basement with a bathroom and wet bar, it would be reasonable to assume that it could cost as much as $63,900 to resale. From there, determine what your basement finishing costs will be if you hire a professional to do the work, and use these two numbers to determine whether or not you can recoup your costs.
At the end of the day, many factors will influence your cost vs. sales research, but a professional finish is a factor you must control from the beginning.
Building more…