How much value does a finished basement add?

[ovi8]

Just do it for yourself and your kids' enjoyment. They'll like the private space when they get older too. Negligible taxes. The camel crickets should pay it, honestly.

[srq57]

In my opinion while a finished basement may not add value to the home, it will make your home a bit more "sellable" as opposed to your neighbors equally appraised home with an unfinished basement. If two homes on the same block, basically being the same, are for sale yours is likely to sell faster given your basement is finished.

[AlienCheese]

One more thing to consider: if you're in a flood zone, or have flood insurance, they will ONLY cover basic infrastructure items (heating, electric etc) in a basement. If you create nice living space down there and it floods from a storm, F/I or H/O won't cover it

[jos.walker]

Originally Posted by lovingtoli

A contractor recommended that I legally finish a basement because it adds value to the house when it comes time to sell. I'm. It sure I'm sold on that theory, while it may add some value (I've heard that a finished basement adds only about $10,000 of value) the permit fees and years of higher taxes mean you pay more in the long run than the extra $10k you'll get when you sell. Furthermore, some people may prefer buying a house with a finished basement that doesn't have a CO because they know that it keeps their taxes down, and they may feel that they are getting a deal since it theoretically isn't factored into the asking price.

I could be completely wrong, but there are a ton of opinions out there on the subject, and this is just mine.

If I'm looking to finish approximately 500sq feet of basement space to make it into a rec room. No bath or bedroom. How much can I expect this to add to the value of my house, and is it worth getting permits and getting taxed?

Thanks.

I'll tack on my two cents' worth as well. I agree that in general, finished basements are not valued the same as other square footage in the house--at least not in this market. I know some owners try to sell three-bedroom ranch homes (that have a single bedroom on the first floor and two bedrooms in the basement). They priced them comparably to other three-bedroom ranch homes. They marketed them with square footage calculations that include the basement. And they haven't sold. As for a rec room - I really don't think it'll add any value. So really, do it for yourself and your kiddos.

As for a renovation, If you have the ability to do the work yourself you can really keep the costs down. I am currently in the process of converting my basement over to a finished game room that my Dad and I have been working on since last September. It takes a while to do but I can’t imagine how much more this would cost to have outsourced. I bet 4x the cost I have paid.