BASEMENT DEVELOPMENT BLOG
Finished Basements Deliver Two Kinds of Return on Your Investment
The most commonly thought-of finished basement ROI is when you sell your home: the financial ROI. The second finished basement ROI is non-financial but arguably is as important, if not more important, than the first. And it is the reason most people remodel.
Financial ROI When You Sell Your Home
A nicely finished basement, with the types of space and features most people want, is more appealing to future home buyers when you eventually sell your home. Your home will look more attractive in the real estate listings. And so your home will likely sell faster and easier. Plus your home will logically command a higher price than a home with an unfinished basement.
What is true of almost all future ROI’s, whether from stock, selling a home, business, or other assets, is that it is not known what that ROI will be.
Factors that impact the ROI of selling a home include the economy, the housing market, time of year you sell, how and when you remodeled your basement. Other factors include what features future home buyers value, the condition of the home, and more. While the exact future ROI is uncertain, it is logical to assume a home with a finished basement will sell for more than a home with a unfinished basement (and it will sell faster).
Finished Basement ROI While You Live in Your Home
Most people don’t remodel their home primarily for the financial ROI. They do it because their home needs to be remodeled to better fit the homeowner’s lifestyle, sense of style, and needs. The financial ROI is secondary and a bonus ROI.
The non-financial ROI you get from finishing your basement is the added living space, improved storage space, and your ability to enjoy and get more use from your basement. There are additional benefits from this ROI compared to the financial one.
- The ROI of improvement to your home while living in it starts paying dividends the moment the remodel is completed. Every day, from day one, you get to enjoy the remodel and make use of it.
- You increase this ROI the longer you live in your home, and by remodeling sooner rather than later. Why? Because the more years you live in your home with the remodeled basement, the more use and enjoyment (non-financial ROI) you get.
- This type of ROI is unaffected by the housing market, economy, or other factors you have no control over.