An outdated basement is considered a waste of space for most homeowners. But if you are thinking of remodeling your Boston home’s basement, how much time have you spent researching the ROI or return on the investment? As a homeowner, you should compare the overall cost of the project versus how much you will get in return. Even if you don’t plan to sell your home any time soon, you should still aim for projects that yield a positive or close to positive return.
Cost versus value matters
The Cost versus Value is a report released annually by Remodeling Magazine. It analyzes the total cost of a project (by region) to the average return in value. This value is how much more your home is worth after the project is complete — and is especially important if you are going to get a loan for your project. Banks tend to not like funding projects that don’t yield a positive return.
The average basement remodel
The average basement remodel includes taking the lower level of your home and creating an entertainment space, full bathroom and mechanical area, which will involve wiring and plumbing. Some basement remodels may be more difficult to complete than others depending on whether the basement is finished or unfinished. Know when you should DIY or hire a professional for your basement remodel. If you lack knowledge in basic remodeling tasks, you may want to hire a professional to do the work for you.
What is the cost versus value for a basement remodel in Boston?
Boston has seen a steady increase in their housing market — especially because of the high demand. But, to remodel a basement, you are looking at an average of $66,029 for all of the work, and you will only earn back $46,299 in value or 70% of your cost. This means you will lose money on the project.
Is it worth it?
Only you can determine whether or not the cost and value is worth it. If you don’t plan to sell your home for a few years, it may be worth the investment. As your value goes up and the housing market continues to grow, you may eventually earn back that additional 30% you lost doing the project. But, if you are remodeling your basement in order to sell it within a year, it may be best to do other upgrades to your home and save the basement for the new homeowner. You should also consult a real estate agent to make sure that updates to your home will matter when it comes time to resell.
Top Image Credit: HP Rovinelli Architects