Before spending money on that costly basement remodeling project, beware! You may not get that HUGE ROI when selling.
Remodeling the basement tends to turn into a labor of love. You’ve got the perfect picture in your mind as to what you want the room to be and once you’ve got it, you’ll do anything to make it happen. You’ll pour everything into it: blood, sweat, tears and even cold hard cash to make it a reality. After it’s all said and done and the dust has settled, you’d expect that you’ve just taken part and helped create something that not only you are going to enjoy for some time to come, but also gain quite a substantial boost in your home’s overall value. The problem is, not all of these dream basement remodeling projects will add to your home’s value. In fact, some of them might even turn some potential buyers away. This is a critical point to consider before going all out with your basement upgrade.
Bigger isn’t always better.
When it comes to basement renovations, going big isn’t always a good thing. Sure you may want to overhaul the room to be your new “Nascar Man Cave” where you and the boys can watch the big race every Sunday complete with checkerboard flooring and built in working replica 1:55 scale Daytona track allowing you and they guys to re-live by holding your own 500′s. Or you may be a huge golf fan and have a theme in mind to reclaim TPC Sawgrass complete with working bunkers and water hazards. Although, two killer ideas for theme rooms, you really need to take in consideration whether or not the upgrades will pay off in the long run. All too often do minor upgrades turn into major improvements that can not only make it tough on resale value, but also your wallet. There’s simply a lot of buyers out there that won’t give in to what you think a themed room like this might bring, especially if they are not into the same things that you are. There is such a thing as over-improving for not only the individual home but for the potential buyer and the neighborhood that your home may reside. Sad, but true. A multi-thousand dollar basement remodel in a lower range housing neighborhood could turn unfavorable to your bottom line and return. A potential buyer simply may not see the same “value” that you do when you did the renovation. Take a look around and see what others may be doing in their basement as a standard for your area. This will undoubtedly bring you your best ROI and you can still dress it up some with the decor while you are there.
But I Need A Home Office
It’s true, there are certain people in the workforce that simply need a place to work from at home. Some may work from home full-time and others simply part-time or as an office away from the office. Whatever it is, if you work from home, you need a space where you can actually “work-from-home”. Not only that, if you have a home office, there could be a possible tax deduction for you as well. What you need to keep in mind is that if you remodel the basement for a home office, it might not pay off when you try and sell your home. This is especially valid if your basement is already being used as living space like an extra bedroom or something to that fact and you take part of that to be your new office. However, if you are finishing and unfinished basement, you could parlay this into a much better situation in the long run for you if you simply remodel it into a regular type room. Then you could use it as the office and splurge on all the amenities instead of the design and built-in structures instead. Think about furniture and desks, you could get some really nice desks and office material to furnish a standard room with than building out a specialized office space.
Wouldn’t it be cool if you had your own movie theater in your basement. No more taking the family to the movies and laying down $100 for tickets, popcorn and cokes when you can just stay at home and watch the latest releases on-demand or via DVD. Heck, you could even invite some friends over to catch the big game in style. Of course you would have to deck it out with raised theater seating and big screen capabilities. Maybe that’s not you. Maybe you are more the type that would like to kick back and indulge in a refreshing glass of wine with a couple of friends and a good conversation in your own wine cellar? Complete with a cigar bar and piano in the corner? Again, these are basement projects where potential buyers may not share in your joy. A lot of times, people simply won’t see that as a convenience or something that may be usable and suitable to their needs as a regular finished basement would. Although, you’ll definitely get the pleasure of having your dream room yourself and be the envy of your friends, you simply might not see the same from an ROI perspective as you might think when it’s time to sell.
Should That Stop You?
One thing to keep in mind is that not everything you are going to do in a basement remodeling project in your home is going to increase the overall resale value of it. But that doesn’t necessarily mean that it’s just a waste of your time and money either. Whether you are remodeling the basement or any other room of your home, it should be a personal decision rather than a monetary ROI one. If you are going to do it, it should be something you want that you see value in, after all, you are going to be the one living there and enjoying it. Sometimes it’s not all about the overall resale value.