We’ve gone over the cost of your basement finish project in previous blogs — design pricing, materials, the scope of work, construction — but what about costs and other financials that occur after the project is complete? What happens to your home value, taxes, and monthly bills after your newly finished basement is ready to live in?
In this quick guide, we’ll review those forgotten costs and values that occur after you finish your basement!
Finished Basements Increase Your Home Value
At FBC, we find that most of our clients finish their basement to expand their space, add new features, or accommodate a growing family. However, it’s still a good idea to finish your basement even if your current house isn’t your forever home! That’s because a basement finish helps raise your home’s resale value.
First, let’s talk about how the monetary value of the home is affected. According to NerdWallet, a simple finished basement that has an entertainment area and basement bath raises a home’s value at an average of $50,000. While the added value may be less than the price of the project, this is great news for your home’s equity! From there, the more special features you add (like a home theater or wine cellar) the more value you’ll accrue. According to Zillow, you’ll see an average of 70 percent return on investment with your basement remodel.
So, what about the other 30 percent? Like we mentioned, your added home value will be less that than what you invested in the basement. This means it’s important to consider the personal value of your remodel. How will your new space add joy to your everyday life? How will your family use the space day-to-day? How will you grow with it over the years? How much more usable square footage does this add to your home? Creating a space that you’ll love for years to come is often priceless!
Increased Home Value Can Raise Property Taxes
While a basement finish can certainly raise your home value, it’s important to note how your property taxes are impacted. According to NerdWallet, the amount of property taxes you pay is based on the value of your home. Local tax assessors are able to reassess home value through permits you’ve pulled for your remodel and by consistently tracking other homes in your area as they resell (resulting in your area’s overall value going up). We recommend connecting with your realtor for any property tax-related questions.
Consider New Utility Costs in Your Finished Basement
You’re aware of the costs associated with creating the needed heating, cooling, plumbing, and electrical access for your new basement. So, what happens after? Once the project is complete, you’ll have additional water and energy costs in your monthly utility bills. When budgeting, make sure to account for that increase.
If you’re still in the planning process, work with your designer to create a more energy-efficient design. Aspects like well-insulated walls and energy-saving windows are just a couple of ways you can build out your project with those utility savings in mind.
Why It’s Always Worth it to Finish Your Basement
Finishing or remodeling your basement allows you to create an entirely new floor in your existing space. There are many ways a finished basement can add to your home value and improve the fit, function, and the way you use your space. If you didn’t build and customize your home in the first place, a new basement allows you the creativity to customize a ton of square footage to exactly what you and your family need.
Because a basement is such a large space, you’re able to add virtually any feature you want. The options are virtually endless — from guest bedrooms, in-law suites, and home offices to specialty builds like wine cellars, home gyms, saunas, and theaters. Whether you’re settled in your forever home or plan to live there for several years before reselling, there is value available to you at every turn.
Build Joy in Your Basement with FBC Remodel
Remember, one of the most important pieces of a successful remodel is a trusted remodel partner to get the design and construction right. FBC Remodel is a design-build firm, meaning your entire basement finish — from concept and design through construction — is handled all under one roof. Unlike a general contractor or hiring all the needed tradesmen yourself, with FBC you’ll get a dedicated architectural designer and project manager who handle all parts of the process on your behalf.
This doesn’t mean that you won’t be involved and heard, though! It’s quite the opposite. Our collaborative design process allows you to work in partnership with your designer to create the custom-built space of your dreams. Before you spend a dime, you’ll book meetings with your designer to see the designed space in 3D, where you can tweak and change your design until it’s just right. The best part is you won’t put down a deposit until we present you with your total guaranteed project cost. This cost covers every detail and each step in your project, from start to finish.
Our proven construction process takes the pressure completely off of the homeowner. Your project manager will oversee every part of your construction on your behalf. This means your PM will ensure your project stays on track, and they even manage the scheduling and management of all tradesmen in your home. You’ll be provided with a user-friendly mobile app that will keep you up to date with your project process at any given time. All you have to do is sit back, relax, and get ready to live in your new basement.
Book Your Free Basement Design Consult Today
The value of amazing design is priceless. Homeowners often increase their home value by adding bedrooms, bathrooms, and finished square footage. However, a poorly designed and executed basement project could deter potential buyers when considering a specific property. Amazing design and that “wow factor” make a home memorable and desirable to all buyers. With a basement remodel, homeowners also get to experience the added value in how it impacts their day to day life and the memories they create in that beautiful and functional space.
We’d love to partner with you on building your dream basement. Call FBC Remodel today to book your complimentary design consultation. We can’t wait to show you what’s possible.