Any home improvement website can tell you that a finished basement adds value to your home. But, how much value does it actually add and why? Many homeowners cringe at the idea of spending thousands of dollars to finish their basements. Basement remodeling in Toronto can cost homeowners somewhere between $8,000 and $20,000. The cost depends on the size of your basement and its current state. Some basements will require more work than others.
As a general rule of thumb, homeowners should not spend more than 10% of their home’s value on a basement remodel. A basement renovation in Toronto is expected to increase the value of your home by 50% of the main level’s value.
As an example, take a $240,000 home. When remodeling the basement, your budget should fall below $24,000. Let’s estimate that the main level is responsible for 50% of the home’s value, or $120,000. The added value of finishing your basement is 50% of that, or $60,000. Remember that this is only an example.
Reasons for the Increase
A basement renovation in Toronto increases the value of your home for many reasons. To start, it adds space. This space can benefit the homeowner and home’s value in many ways. See the following four ways a finished basement adds value to the home.
Increase Square Footage
Each area has an average cost per square foot of space in the home. With this in mind, it seems logical that the value of the home will increase as the amount of square feet increases. Larger homes sell for more money. Depending on the specifics of the remodel, the basement may or may not add to the listed square feet of the home. But, regardless of the listed space, homebuyers will recognize the additional living space.
Another reason basement remodels in Toronto increase the value of a home is because they offer bonus space. They set your home apart from others. Compare 2300 square foot , ranch style, 3 bedroom home to a home with 2300 square feet, three bedrooms, and a finished basement. The finished basement offers homebuyers the opportunity to set up an additional living room, create a home office, or design a rec room.
When you finish your basement, you may or may not have drywall placed to create additional bedrooms. Whether the bedrooms are already there, or the basement simply provides the opportunity for additional bedrooms, homebuyers will appreciate the space.
Consider the 2300 square foot, ranch-style home again. Now, picture the 2300 square feet, three-bedroom home with a finished basement. Which seems bigger? As you can see, a finished basement adds monetary value and increases the chance of your home selling for its appraisal value. Contact our team to learn more about building your dream basement today.