Is It Better to Finish a Basement Before Selling Your Home?

What is a Finished Basement?

A basement constitutes as finished when it’s complete and similar to the upstairs living space. A finished basement typically has heat, an electrical system, finished floors, level ceilings, finished walls, and an accessible entrance/stairway. Basement walls painted without drywall, ceilings with exposed beams or poles, and painted concrete floors are not considered “finished”.

Benefits of Finishing Your Basement Before Selling

According to the Appraisal Institute of Canada, a finished basement typically increases the value of a home by up to 70%. There are other benefits of finishing your basement before selling, such as:

• Attract more potential buyers.
• You can promote the additional livable space as storage, a specific room like a bar or gym, or a rental unit. 
• It’s a more affordable way to improve the layout of the home when compared to an above-ground reno or addition.

What Adds the Most Value to a Basement

How much value does a finished basement add in Ontario? When browsing Milton homes for sale with finished basements, you’ll find that certain renovations have a greater impact on a home’s value, such as basement bedrooms or a bathroom. 

Buyers are all about usable space and are generally willing to spend more to have more of it. Other desirable features are open floor plans, full-size windows, and family-friendly areas. 

The best way to maximize your ROI is to plan the cost of your basement remodelling project alongside current real estate market trends. 

What Time of the Year is Best to Finish a Basement?

While any season works for finishing a basement, the winter months are typically favourable since you’re spending more time indoors anyway. Plus, an unfinished basement means you’re likely not using it for much besides laundry, storage, and potential hiding spots for holiday gifts, so it wouldn’t matter how long it takes to finish a basement reno. 

Factors to Consider Before Finishing Your Basement

There are some factors to consider before transforming your lower level into an additional living space. 

• Market: What is the current demand for homes with finished basements? An experienced local realtor can help you compare houses with finished basements against those without.
• Local codes and laws: Most renovations have local regulations and rules to follow, especially regarding living spaces. Ensure you have all the answers before considering a basement reno to add value to your home.
• Potential problems: Have you checked for signs of mould? Plumbing leaks? Does the electrical wiring need updating? Every possible issue will add to the cost of your renovation. 
• Materials: Which quality of materials will offer the best ROI? Since some materials work better than others, find the ones that work best for your basement space.
• Budget: How much are you willing to invest in the project? Your realtor can help you minimize your budget while increasing the home’s value. 
• Layout: How will you use your space? Will you divide it or have one big room? The more enticing you make your layout, the more value you’ll see in return. 
• Time: How much time can you dedicate to this project? Are you on a tight deadline? 

How Much Does it Cost to Finish a Basement in Ontario?

The cost to finish a basement in Ontario largely depends on how much work you put in. Generally, a basement reno without a bathroom averages  between $25,000 and $40,000. Adding a bathroom would run you between $12,500 to $20,000 more, depending on size and features. 

What is the First Thing to Do When Finishing a Basement?

The most important step in any successful renovation project is the planning stage. Here are a few things to consider:

• Decide on the basement design. Will you turn it into a specific area or leave it open as flex space for the next homeowner to decide? 
• Draft a detailed floor plan. This design will help you determine how your finished basement will fit together. 
• Hire a local contractor. A professional contractor can help with all your renovation needs, from spotting potential problems to framing, flooring, plumbing, and electrical.

How to Finish a Basement Economically

If you’d like to reno your basement before selling your home but don’t have the budget to “finish” it, there are a few ways you can boost its appeal economically:

• Add a fresh coat of paint to brighten walls or camouflage exposed rafters, pipes, and ductwork.
• Make the floors look and feel more welcoming with laminate or vinyl flooring. You can also paint concrete floors. 
• Avoid expensive electrical work by getting creative with your lighting. Strategically position lamps, crisscross strands of lights, or use LED string lighting — anything looks better than the standard single-hanging basement bulb. 

Thinking About Finishing Your Basement Before Selling? 

Tackling a basement reno can be daunting, especially when you’re not 100% sure if the money you put out will help with the sale. This is where Flowers Team Real Estate comes in. 

We’ll walk you through the process, compare market prices, determine how to get the most bang for your buck, and get your house off the market in the shortest time possible. And if you decide to go ahead with the renovation, we work closely with top contractors who can help get it done. 

You deserve nothing less than the best real estate experience possible. We’ll go above and beyond to make it happen.

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