Originally Posted by stuckinoh
Wondering if anyone has gotten a good return on their investment by finishing their basement? By that I mean, increasing the value of their home when they go to sell it.
I am very back and forth on mine. I have a large walkout basement but don't know if it's worth laying out the cash to finish it. Not planning on staying in my house forever.. Thoughts?
It may not increase your appraised value if a lot of other homes have done it as well but it might make it sell faster. It depends on what similar homes in your area have done.
We had ours appraised last month. The appraiser picked a sample of comparable homes sales and listings in our area and our home fell in that range. If you have a lot of upgrades compared with your neighbors, you'll tend to appraise at the higher end of the range. So find out what comparable home sales in your area are, and determine what the typical range is. That will tell you what the maximum possible return would be (range from the bottom seller and the top seller of comparable size). Remember that this is only one portion of the house so in no way will it take your home from the least valuable to the most valuable. So for example lets say your range in comparable home sales is about $35K ($200K-$235K). That means your home is probably going to sell somewhere in between that. Just a SWAG (silly wild-assed guess) but maybe your upgrade will get you 5-10% boost inside that range. That would mean $1750-$3500 boost in value. So if you're spending $5K (maybe you hired a contractor), you'll lose money. If you're spending $500 (you did it yourself), you'll likely see a return on your investment.
As was stated earlier, if you can do the work yourself, you can save a lot of money and still make it look good.
My wife and I redid our bathroom and it made it look much better for not much money. We painted, replaced the cabinet and layed down some new tile flooring (looks like wood wood flooring, but it's a floating floor self-sticking tile). Total cost was about $70 for the flooring, $300 for the sink/cabinet/mirror, $60 for some fixtures and some paint which we already had. I also cut some 4 1/2" baseboard trim (about $30).
Just keep it simple. Keep in mind too that color can be a turn-off as well. Our neighbors were selling their condo (identical size and layout) and sold first to a lady who looked at both of ours. She preferred the white walls over our colorful walls. She's looking to paint it to her liking and could see it easier with white walls than with ours.