How much does it cost to finish a basement?

[SenselessChiefsFan]

Originally Posted by BWillie007

I know it depends alot of square feet and other factors, but what is a general rule of thumb? I'm looking at houses right now and basically, I will not buy a house without a finished basement. I've noticed that alot of houses are significantly cheaper that I like, but the only thing that gets me away from them is not having a finished basement. I'm kinda in a time crunch, because my FHA 4.7% interest rate only lasts for so long. Hell of a time to buy a house right now.

I don't want to put a room down there or anything. Don't really need a bathroom either. Just a wet bar, some good chiefs memorabilia, and make it a nice rec room. BTW, I am not handy at all. Unless it's something I can learn in a weekend, I ain't doin' it. Any good reputable companies around here that specialize in that kind of thing?

I come from this a little differently than most. I have four years of construction experience. I have 12 years of real estate experience and I hav bought and sold over a dozen houses in recent years.

Someone mentioned that you would certainly pay less for buying a home and then finishing the basement. This is wrong at least 80% of the time. A home with a finished basement won't sell for that much more than one without. (In comparison to what it will cost you to finish the basement to a similar finish quality)

A lot of different things go into the cost. First, if it is a newer home, it probably has higher basement ceilings, as well as a bath plumbed in the basement already.

The higher the ceilings, the cheaper it is to finish because the contractors don't have to be as 'creative' when it comes to mechanical systems.

Now, mechanical systems: The current HVAC is rated for the finished area. If it is a two story house with two systems and they are zoned already, you can probably get away with tapping into your first floor system.

When you finish the basement, you will want heat and A/C. If not for temperature comfort, just for the air quality. The A/C will act as a dehumidifier, and the system will filter the air. You can look at about 2K for the HVAC considerations. This may be low. You may elect to have things set up radically different from what you currently have after the HVAC guy comes out.... or it may be a little high, if you can tap into an existing system without overworking it. (If the previous owner put in a new system that was much larger than he needed)

Okay, so then the wet bar. If the basement is plumbed for a bath, most of the time, the wet bar can be placed in such a way as to take advantage of the existing roughed out plumbing (basically, just on the other side of the bathroom sink wall). If not, you are looking at breaking the concrete floor to install the drain and the draing pipe. Just this, will run you about $1500.00 depending on how much concrete they have to break up.

Okay, a bath will run you about $3000.00 after the roughed in plumbing. This is a plane jane, no frills bathroom. Standard tub, toilet, cheap sink, cheap fixtures, etc.

Now, to just finish a room in the basement, you are probably looking at about $15.00 per square foot. This is with a dropped ceiling, base carpet, cheap lighting, 3.5" baseboards, etc.

You can usually find basements that are already finished and it will cost you less than if you buy the same house and finish it yourself.

But, right now, frankly, it is all about the 'deal'. It is a great time to buy. You can find ridiculous deals. And, you may find one with a finished basement or without. If it has one, great. If not, don't shy away just because of that.

Obviously, size matters when estimating this. But, if you are hiring a contractor, and are looking to finish 1000sf, with a wetbar and a bathroom, you are looking at around 20K pretty easy, probably more.

Remember, once you start a project, it is real easy to think "I should go ahead and do this... it only costs a little extra'... and you do that a few times and suddenly, that 20K basement is a 40K basement.

One positive, right now, contractors are struggling with finding work. IF you have the cash, you can probably get this done a little cheaper by haggling and getting a lot of quotes. But, the key will be having the cash to offer them a job 'right now'... not getting bids for something to have done in the future.

Oh, and it will cost you more to hire a general contractor that will handle everything. It would cost less to hire each subcontractor yourself.



Anyways, good luck with it all.

[luv]

Originally Posted by SensibleChiefsfan

I come from this a little differently than most. I have four years of construction experience. I have 12 years of real estate experience and I hav bought and sold over a dozen houses in recent years.

Someone mentioned that you would certainly pay less for buying a home and then finishing the basement. This is wrong at least 80% of the time. A home with a finished basement won't sell for that much more than one without. (In comparison to what it will cost you to finish the basement to a similar finish quality)

A lot of different things go into the cost. First, if it is a newer home, it probably has higher basement ceilings, as well as a bath plumbed in the basement already.

The higher the ceilings, the cheaper it is to finish because the contractors don't have to be as 'creative' when it comes to mechanical systems.

Now, mechanical systems: The current HVAC is rated for the finished area. If it is a two story house with two systems and they are zoned already, you can probably get away with tapping into your first floor system.

When you finish the basement, you will want heat and A/C. If not for temperature comfort, just for the air quality. The A/C will act as a dehumidifier, and the system will filter the air. You can look at about 2K for the HVAC considerations. This may be low. You may elect to have things set up radically different from what you currently have after the HVAC guy comes out.... or it may be a little high, if you can tap into an existing system without overworking it. (If the previous owner put in a new system that was much larger than he needed)

Okay, so then the wet bar. If the basement is plumbed for a bath, most of the time, the wet bar can be placed in such a way as to take advantage of the existing roughed out plumbing (basically, just on the other side of the bathroom sink wall). If not, you are looking at breaking the concrete floor to install the drain and the draing pipe. Just this, will run you about $1500.00 depending on how much concrete they have to break up.

Okay, a bath will run you about $3000.00 after the roughed in plumbing. This is a plane jane, no frills bathroom. Standard tub, toilet, cheap sink, cheap fixtures, etc.

Now, to just finish a room in the basement, you are probably looking at about $15.00 per square foot. This is with a dropped ceiling, base carpet, cheap lighting, 3.5" baseboards, etc.

You can usually find basements that are already finished and it will cost you less than if you buy the same house and finish it yourself.

But, right now, frankly, it is all about the 'deal'. It is a great time to buy. You can find ridiculous deals. And, you may find one with a finished basement or without. If it has one, great. If not, don't shy away just because of that.

Obviously, size matters when estimating this. But, if you are hiring a contractor, and are looking to finish 1000sf, with a wetbar and a bathroom, you are looking at around 20K pretty easy, probably more.

Remember, once you start a project, it is real easy to think "I should go ahead and do this... it only costs a little extra'... and you do that a few times and suddenly, that 20K basement is a 40K basement.

One positive, right now, contractors are struggling with finding work. IF you have the cash, you can probably get this done a little cheaper by haggling and getting a lot of quotes. But, the key will be having the cash to offer them a job 'right now'... not getting bids for something to have done in the future.

Oh, and it will cost you more to hire a general contractor that will handle everything. It would cost less to hire each subcontractor yourself.



Anyways, good luck with it all.

So, why do I always hear that so much spent in upgrades brings back so much more at resale? Well, with the exception of bathrooms. I think the highest return I've seen on bathrooms is like 80-90%. Would a finished basement not be an upgrade? Especially if he tries to put minimal cost into it? And how much of a return do you think he'd see on putting a $3000 bathroom in the basement?

[DeezNutz]

Originally Posted by luv

So, why do I always hear that so much spent in upgrades brings back so much more at resale? Well, with the exception of bathrooms. I think the highest return I've seen on bathrooms is like 80-90%. Would a finished basement not be an upgrade? Especially if he tries to put minimal cost into it? And how much of a return do you think he'd see on putting a $3000 bathroom in the basement?

Because basements, if they're not walkouts, aren't figured into the overall square footage of the home.

Some upgrades net great returns, bathrooms and kitchens in particular. Some upgrades, like putting a pool in the backyard and finishing a pit basement, are buyer beware.

Finishing the basement might make the house more appealing, but he might not get all of his money back from his investment, let alone make money on the deal.

[Bugeater]

Originally Posted by luv

So, why do I always hear that so much spent in upgrades brings back so much more at resale? Well, with the exception of bathrooms. I think the highest return I've seen on bathrooms is like 80-90%. Would a finished basement not be an upgrade? Especially if he tries to put minimal cost into it? And how much of a return do you think he'd see on putting a $3000 bathroom in the basement?

It will add some value, it just won't be a dollar-for-dollar return. Bathrooms and kitchens are about the only thing that can net you a positive gain.

In my personal opinion, if you're buying a house strictly on the hopes that it will gain value, you're buying it for the wrong reason. You'll never see that gain anyway because as housing prices go up you'll just spend what you gained on the next one. About the only way one can get ahead is if they can do the work themselves and he said that's not really an option.

[Groves]

Originally Posted by luv

So, why do I always hear that so much spent in upgrades brings back so much more at resale?

Well, realtors, though many are nice, don't really care either way from a financial standpoint.

You can't fault contractors for hoping that upgrades to bring back more at resale because it makes their clients feel better about spending the money.

There's few people collecting the data, and the people that could really benefit the data are the ones contemplating buying a house, not people that already own.

If you've already bought the house, it's not very palatable to hear.

[SenselessChiefsFan]

Originally Posted by luv

So, why do I always hear that so much spent in upgrades brings back so much more at resale? Well, with the exception of bathrooms. I think the highest return I've seen on bathrooms is like 80-90%. Would a finished basement not be an upgrade? Especially if he tries to put minimal cost into it? And how much of a return do you think he'd see on putting a $3000 bathroom in the basement?

I always tell my clients and homeowners that I work with that you do upgrades for yourself, not to get a return on your investment.

The one caveat is that if something needs replacing, the cost to upgrade versus replacing with the same quality is typically much less. At those times, it 'may' be beneficial to spend the extra money to upgrade.

Unless you buy a house below market that needs rehabbed, or unless you are in a high demand area with older homes, you will not see a dollar for dollar return on your investment when you upgrade a home or finish the basement.

In the past, just normal appreciation would allow you to recoup your investment. However, I believe appreciation will happen at a much lower rate going forward than it happened in the late nineties through 2005.

[luv]

Originally Posted by SensibleChiefsfan

I always tell my clients and homeowners that I work with that you do upgrades for yourself, not to get a return on your investment.

The one caveat is that if something needs replacing, the cost to upgrade versus replacing with the same quality is typically much less. At those times, it 'may' be beneficial to spend the extra money to upgrade.

Unless you buy a house below market that needs rehabbed, or unless you are in a high demand area with older homes, you will not see a dollar for dollar return on your investment when you upgrade a home or finish the basement.

In the past, just normal appreciation would allow you to recoup your investment. However, I believe appreciation will happen at a much lower rate going forward than it happened in the late nineties through 2005.

You need to call HGTV. They're hiring the wrong real estate experts. They tell how much they spent fixing up a room, and the realtor usually tells them what they can expect to get back for it. It's usually always higher unless they've overspent on kitchens, bathrooms, or lighting.

Or they urge people to buy houses with unfinished basements telling them they can get they're money back, plus some.

Even last night, when a couple renovated a basement apartment, some appraiser said it added $100K onto the worth of the house.

[SenselessChiefsFan]

Originally Posted by luv

You need to call HGTV. They're hiring the wrong real estate experts. They tell how much they spent fixing up a room, and the realtor usually tells them what they can expect to get back for it. It's usually always higher unless they've overspent on kitchens, bathrooms, or lighting.

Everything is situation specific. But, on the whole, other than paint and carpet.... a home buyers net return on investment for real estate upgrades is typically negative.

[SenselessChiefsFan]

Originally Posted by luv

You need to call HGTV. They're hiring the wrong real estate experts. They tell how much they spent fixing up a room, and the realtor usually tells them what they can expect to get back for it. It's usually always higher unless they've overspent on kitchens, bathrooms, or lighting.

Or they urge people to buy houses with unfinished basements telling them they can get they're money back, plus some.

Even last night, when a couple renovated a basement apartment, some appraiser said it added $100K onto the worth of the house.

Where was the house with the basement apartment at?

[Bugeater]

Originally Posted by luv

You need to call HGTV. They're hiring the wrong real estate experts. They tell how much they spent fixing up a room, and the realtor usually tells them what they can expect to get back for it. It's usually always higher unless they've overspent on kitchens, bathrooms, or lighting.

Or they urge people to buy houses with unfinished basements telling them they can get they're money back, plus some.

Even last night, when a couple renovated a basement apartment, some appraiser said it added $100K onto the worth of the house.

Do you really believe everything you see on TV?

[DaFace]

Originally Posted by luv

You need to call HGTV. They're hiring the wrong real estate experts. They tell how much they spent fixing up a room, and the realtor usually tells them what they can expect to get back for it. It's usually always higher unless they've overspent on kitchens, bathrooms, or lighting.

Or they urge people to buy houses with unfinished basements telling them they can get they're money back, plus some.

Even last night, when a couple renovated a basement apartment, some appraiser said it added $100K onto the worth of the house.

My wife is into those shows, and I got into them a bit when we first started house hunting. But there was an episode of "Property Virgins" that completely burst my bubble in terms of considering them to be experts. A couple was trying to buy their first home, and they were looking at houses that were at the VERY top of their price range. They were approved by the bank for that amount, but they had wanted to spend maybe 15% less than that based on their own personal calculations about what they could afford. Her reply (paraphrased) was:

"Sometimes you have to stretch a little higher than you expect to get the house you want. The bank knows what you can afford. It's their job to make sure you can afford your payments."

I just about crawled through the screen and strangled that woman. I had to rewind it and play it back twice to make sure I had heard her correctly.

[Brock]

It looks like drywall slabs have come down in price recently. I remember a couple of years ago I was paying like 16 dollars a sheet and it looks like they're down to about 8 now. Probably a good time to get started.

[DaFace]

Not that an appraisals are 100% accurate, but the finished basement for the house we're buying only added $5,800 to the appraised value of our place at 765'. Just FYI. That doesn't include a bathroom, though.

[SenselessChiefsFan]

Originally Posted by DaFace

Not that an appraisals are 100% accurate, but the finished basement for the house we're buying only added $5,800 to the appraised value of our place at 765'. Just FYI. That doesn't include a bathroom, though.

From an appraisal standpoint, it completely depends on the area. In some subdivisions, a finished basement is almost standard. In those subdivisions, not having one really hurts the resale of the home.

The appraiser is supposed to look at the market and derrive the average price benefit per sf of finished basement.

[Stewie]

I bought my house in '93. The first thing I did was gut the finished basement due to its 1968 decor (when the house was built). The finished space is about 900 sq. ft and while I left the walls in place and painted them, the rest was torn out and replaced. I added a wet bar, upgraded the electrical including additional recessed lighting, vinyl flooring and carpet. I did everything but the flooring myself and spent about $3000 total (in 1994 dollars). The wet bar is built of stock cabinets and countertops that I bought from Builder's Square, so it was pretty inexpensive but turned out nice.