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Goobster
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Member since 5/07 27557 total posts
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:)
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How much would a finished basement effect the bid you place on a house?
We are debating on whether it is worth it to finish our basement. Our basement is currently an old paneling, crappy job basement. It really cannot be salvaged with just painting the paneling. It was a real crap job by the previous owner in the 70s. Right now, on top of everything we have spent on improvements, we believe we can still make about 50,000 above what we put in for improvements.
So on that note, I guess what I am asking is, how much would a newly finished good quality basement likely raise potential bids by? What would you do if you were bidding on equal type houses but one had an old finished basement that was really crappy and one had a really new usable finished basement?
Just wondering if it is worth it, if we put our house on the market, will we see additional $ if we put in a new basement at this point? And how much a new basement might raise a bid by (5,000 or more?) Thoughts?
Message edited 10/1/2007 7:44:52 AM.
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Posted 10/1/07 7:42 AM  |
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Prudential Douglas Elliman Real Estate
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: How much would a finished basement effect the bid you place on a house?
http://www.bankrate.com/brm/news/real-estate/20050219a1.asp
According to annual surveys by Remodeling Online, homeowners who spend $50,000 on major basement remodeling can expect to add just under $40,000 to their home's resale value, or recoup 79.3 percent of their investment.
However, in strong resale markets such as Los Angeles, San Diego and New York where values are growing more rapidly, basement remodeling can pay off close to 110 percent. Conversely, remodeled basements in softer markets such as Detroit, Cincinnati, Cleveland and Dallas may pay off only 65 percent or even less.
http://www.bizjournals.com/denver/stories/2004/10/25/focus5.html
How much to spend
* As a rule, plan on investing 12 percent to 25 percent of the cost of your home on a basement finish. If you are hiring a general contractor and spending less than this, take a second look at what you are buying.
* Special design features might cost a little more but can make the difference in creating a phenomenal space.
* Special interest items like a dark room or special sporting areas (e.g., rock climbing walls) typically do not appeal to a broad enough range of people to recoup the investment at resale.
* Try to remain in line with the pricing in your neighborhood. If you already own the most expensive home on the block, it's going to be tough to get your full investment out of a basement finish.
http://www.usaweekend.com/03_issues/030406/030406h_and_g.html
Project #5: A finished basement.
Why build out a basement? "Why not?" asks Massachusetts contractor Tru Davis. "It's a pretty good value." How else can you add one-third more space to a two-story house for a tiny fraction of the construction cost and recoup about 80% of your costs when you sell?
Homeowners often get creative with a basement re-do because, psychologically, it seems like "free space," Davis says. What do they add? Home gyms, wine cellars and media rooms in addition to the typical extra bed and bath.
The key to a successful basement renovation is to take a few preliminary steps before you finish it off. First, make sure your foundation walls are sound. Any moisture or water leaks must be taken care of before you start. To test for moisture in the floor, tape a piece of plastic wrap about 2 feet by 2 feet to the concrete floor. Let it sit overnight. If you see water beads on the plastic, you may need to call a basement waterproofing company. If you have a sump pump, make sure you invest in a good backup pump -- we like the SumpGenius, which is available at nextpower1.com -- in case the power goes out in a rainstorm. (No skimping here: Many insurance companies now are limiting their coverage for flooded basements.)
Also consider how you'll heat and cool the basement space. Additional ductwork from your furnace may be needed to supply the area correctly. Just tapping off the existing heat runs that feed the upstairs will "starve" your main floors and not adequately heat or cool either area. Call in a heating and cooling contractor to design and implement these changes -- it's worth it. A freezing, albeit nicely renovated, basement is a space you'll seldom use.
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| Posted 10/1/07 7:50 AM |
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JavaJunkie
Someday, Somehow
Member since 6/05 5857 total posts
Name:
Lois
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Re: How much would a finished basement effect the bid you place on a house?
a basement for us was a must, finished would be a plus
Message edited 10/2/2007 8:28:17 AM.
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| Posted 10/1/07 8:20 AM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: How much would a finished basement effect the bid you place on a house?
A finished basement had no effect on our bid. We were looking for a house that actually had a basement - if it was finished then it was a bonus for us.
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| Posted 10/1/07 8:49 AM |
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cjik
Welcome 2010!
Member since 2/06 8879 total posts
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Re: How much would a finished basement effect the bid you place on a house?
The market is really bad now and only shows signs of getting worse in the next few months. I don't think I would invest in it at this point. If there is anything inexpensive you can do to make it look better, then do that, but I wouldn't spend the money refinishing it. You may not get that money back in your sale.
When we were looking for homes, a finished basement was a perk, but I can't say we wouldn't buy a place because it lacked a finished basement. Also, we saw some that were newly finished that were not to our liking at all, so if you finish it, you need to realize some people won't like the way you did it and will want to redo it anyway.
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| Posted 10/1/07 8:54 AM |
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Chatham-Chick
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Member since 5/05 10311 total posts
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Re: How much would a finished basement effect the bid you place on a house?
We just wanted a basement...the larger, the better. Having it finished was probably more of a negative to us b/c we're pretty picky with our tastes and how we want things done.
I'd much rather walk into a basement that didin't need any demoing than a finished basement.
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| Posted 10/1/07 9:29 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: How much would a finished basement effect the bid you place on a house?
we wanted a basement but it didn't have to be finished. It also depends on how much living space there is overall. If there's a family room and a living room already on the main level then a basement is just storage.
That's what we use our basement for.
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| Posted 10/1/07 9:35 AM |
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leese
Sarge!
Member since 5/05 1965 total posts
Name:
Leese
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Re: How much would a finished basement effect the bid you place on a house?
No effect.
The fact that you have a basement is good.
And, that you have done other renovations.
For me, its the number of things I have to do -- so if I don't have to do the kitchen or main bath, I don't mind doing something like the basement.
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| Posted 10/1/07 10:36 AM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: How much would a finished basement effect the bid you place on a house?
Keep in mind that most estimates say you'll recoup 80% of your investment in a basement.... the other way to look at it is you'll lose 20% of your investment if you invest just to sell.
I wanted an unfinished basement, and when we expand our house and basement, I'm keeping it unfinished. I like the storage space, and the woodworking area of an unfinished basement, so a finished basement may be a turn-off for me.
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| Posted 10/1/07 10:43 AM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: How much would a finished basement effect the bid you place on a house?
Right....
ok so are you all saying you would not bid MORE if it was finished? Would you bid the same as if it was not finished?
thanks for the replies
Message edited 10/1/2007 3:07:21 PM.
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| Posted 10/1/07 3:06 PM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: How much would a finished basement effect the bid you place on a house?
Posted by Goobster
Right....
ok so are you all saying you would not bid MORE if it was finished? Would you bid the same as if it was not finished?
thanks for the replies
Possibly more, but probably not more than you put into the basement. What good is a $8,000 increase in the bid, if you spent $10,000 to finish the basement?
Also, it depends on how it turned out, if it was something I liked, if I still had room to store stuff, etc.
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| Posted 10/1/07 3:10 PM |
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BabyAvocado
Happy New Year
Member since 5/05 17334 total posts
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Re: How much would a finished basement effect the bid you place on a house?
What kind of house is it?
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| Posted 10/1/07 4:05 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: How much would a finished basement effect the bid you place on a house?
1920s colonial. mid sized 1700ish sq ft without basement
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| Posted 10/1/07 4:08 PM |
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cjik
Welcome 2010!
Member since 2/06 8879 total posts
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Re: How much would a finished basement effect the bid you place on a house?
I would bid slightly more if I liked the way it was finished, though if I didn't like the way it was finished, I would actually bid less since it's harder and more expensive to demo and redesign. Since you can never tell what people will and will not like, I would say leave it alone.
Also, yes, I remember my DH liked the idea of having a workspace in the basement. We didn't wind up getting one that has that, but that was on his ideal wish list.
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| Posted 10/1/07 4:15 PM |
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: How much would a finished basement effect the bid you place on a house?
Message edited 1/30/2009 10:14:41 PM.
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| Posted 10/1/07 4:50 PM |
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LeShellem
A new beginning
Member since 2/07 3600 total posts
Name:
LeShelle
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Re: How much would a finished basement effect the bid you place on a house?
I wouldn't pay more for a finish basement, but If there were two homes similiar to each other, but one had the finish basement I would place a bid for the finish basement. Would you get more money for having a finish basement, probably not. Will it sell faster. I believe so. The market is so crappy that people are looking for polish spaces to bid on. So you house would stand out.
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| Posted 10/1/07 5:01 PM |
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cjik
Welcome 2010!
Member since 2/06 8879 total posts
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Re: How much would a finished basement effect the bid you place on a house?
I wanted to add, I would consider reducing your price ever so slightly rather than spending money finishing the basement. A lower price is always more attractive to buyers.
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| Posted 10/1/07 7:48 PM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
Name:
XXXXXXXXX
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Re: How much would a finished basement effect the bid you place on a house?
It depends on who your potential buyer is. When I bought my home ten years ago, I had no kids and although we wanted a basement it didn't have to be finished. However, if I were buying a house today, two kids later, a nicely finished basement would be worth paying more money for. I think most of my "mommy" friends, with kids old enough to be on the "play date circuit" would probably agree. The thought of living through any construction with kids is a total PIA, trust me I've been there.
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| Posted 10/1/07 9:01 PM |
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SpiceGirl
Dream big
Member since 1/06 2486 total posts
Name:
j
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Re: How much would a finished basement effect the bid you place on a house?
It all depends on the priorities of the 'buyer'. Me personally, I wouldn't bid more just because a house has a finished basement.
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| Posted 10/1/07 9:22 PM |
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JenandMikey
life is good =)
Member since 5/07 4216 total posts
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We're so blessed!
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Re: How much would a finished basement effect the bid you place on a house?
i really wanted a finished basement but dh is handy and he said that its actually better for someone thats handy and can do a finished basement diy from scratch rather than to tear everything down from a finished basement that might not be ur taste or how u would do it.....but the house we're in process with has a finished basement ....i do think its worth it
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| Posted 10/1/07 9:25 PM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: How much would a finished basement effect the bid you place on a house?
Posted by SpiceGirl
It all depends on the priorities of the 'buyer'. Me personally, I wouldn't bid more just because a house has a finished basement.
Ditto. We wouldn't either. We would bid what we thought the house was worth. What if we thought the basement finish wasn't up to our standards or something like that?
Message edited 10/2/2007 8:29:46 AM.
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| Posted 10/2/07 8:29 AM |
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Re: How much would a finished basement effect the bid you place on a house?
When we sold our home we were on the fence about whether or not to finish it. It needed a new flloor, some sheetrock and paint. We would go back an forth and knew it would cost us roughly $1000 to do ourselves. Instead we decided to re-do our main bath and I think that was a wiser decision. Some people coming through didn't think it was a big deal because the house had enough room were you didn't need that space right away and could make it more theirs. Other's didn't want the hassel of fnishing it. I think if you clean it up really well, take away all the clutter then people can see the potential. Even though you said paint won't help it, it will make the room look brighter. Another option is that let's say you have a potential buyer and you find out that the only thing holding them back is the basement, offer that you will finish it but I wouldn't spend alot on it. We did this with one bidder but he ended up backing out (he backed out on so many bids he put in with out houses).
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| Posted 10/2/07 8:34 AM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: How much would a finished basement effect the bid you place on a house?
Posted by Blu-ize
we wanted a basement but it didn't have to be finished.
exactly. If the potential was there that is all that mattered to us.
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| Posted 10/2/07 8:49 AM |
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Dani00518
Gorgeous
Member since 5/05 2730 total posts
Name:
Danielle
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Re: How much would a finished basement effect the bid you place on a house?
Posted by VickiC
A finished basement had no effect on our bid. We were looking for a house that actually had a basement - if it was finished then it was a bonus for us.
same here
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| Posted 10/2/07 9:04 PM |
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Re: How much would a finished basement effect the bid you place on a house?
Posted by Chatham-Chick
We just wanted a basement...the larger, the better. Having it finished was probably more of a negative to us b/c we're pretty picky with our tastes and how we want things done.
I'd much rather walk into a basement that didin't need any demoing than a finished basement.
ITA
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| Posted 10/3/07 9:51 AM |
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