Finishing your basement is one of those home projects that can benefit you twice. First, you get more usable space. Second, when you sell your home, you might get back most of what you spent.
Is It Worth It?
Yes! According to a study by the National Association of Realtors (NAR) and the National Association of the Remodeling Industry (NARI), exploring basement renovation ideas and finishing your basement can give you back about 86% of the money you spent when you sell. That’s better than most home projects, including kitchen or bathroom remodels.
What Does It Cost?
In the NAR/NARI study, the sample project cost $57,500. It included turning half a basement into a playroom with a TV, finished walls, ceiling, carpet, baseboard heating, lights, and windows. But the real price can vary widely from $10,000 to over $100,000, depending on:
- Basement condition
- Local labor and material prices
- Design choices
- Building code requirements
Things That Affect Cost
- Basement Condition:
Many basements have problems like mold, leaks, or foundation cracks. These must be fixed first. Repairs can cost from $100 to $15,000 or more.
- Building Code Rules:
You’ll need at least one exit (like a large window or door) for safety. Egress windows cost $3,000–$7,000. If you need to build or fix stairs, that can add $1,000–$3,000.
- Room Use:
A simple family room or office is cheaper than building a full apartment. A bathroom adds $10,000–$25,000, a kitchenette $5,000–$20,000, while a wet bar might cost just $500+.
- Materials & Design Help:
Luxury materials and hiring designers or architects can make the project more expensive.
- Location:
Where you live makes a difference. A basement remodel in New York City could cost much more than one in Denver due to labor and permit costs.
Will Buyers Want It?
The value you get back depends on what buyers are looking for. A fun but unique space like a mini-golf room may not appeal to everyone, but a cozy family room likely will.
In the same study, 86% of the $57,500 was expected to be recovered at resale. But in some areas, that number could be higher or lower. For example, a 2017 report showed an 86.4% return in the Pacific region, but only 52.8% in New England.
Should You Do It Before Selling?
Not necessarily. Only 5% of Realtors recommend finishing a basement right before selling. But if you plan to stay in your home, it could be a great investment in comfort and function.
And most importantly, homeowners who finish their basement are usually very happy with the result. In fact, the project earned a joy score of 9.7 out of 10—which says a lot about how much people enjoy the extra space.
