The more improvements you make to your home, the more valuable your home will be during the resale process. Unfortunately, some homeowners don’t make the most of their foundations and avoid space. However, by considering these small improvements, you can add to the overall value and comfort of your home! It’s not just about resale; It’s all about enjoying and making the most of what you already have!
Finished Room and Increased Value
When you call an appraiser to consider your home’s value, you’ll find that a finished basement is worth much, much more per square foot than an unfinished basement. The value of your home is based on a scale. There is a desired value placed on all top grades per square foot and bottom grades per square foot. Most appraisers refuse to consider a room available or finished unless it is heated, in addition to considering other valuable options.
Every two years, your home is assessed for tax purposes. The value that an appraiser assigns to your home for property taxes is not the same value that his home is worth, nor the same price that he might expect to receive during a sale. Since property tax assessments are not updated annually to base a resale value, there may be a built-in percentage that increases annually, but typically never correlates to market value.
A professionally finished basement
A professionally finished basement is an easy and ultimate way to affordably increase the value of your home. A professionally finished basement required proper permits at the time of the improvement, and the work done on the basement was completed properly and professionally. Work done on the foundation must be done by a licensed or certified contractor, if the homeowner is inexperienced in home improvement. This includes plumbing, electrical, insulation, drywall, and heating and cooling upgrades.
If you intend to install or currently have a low ceiling, you may not be eligible to obtain the necessary permits to complete the renovations. If the ceiling is low due to heating duct work, consider using a smaller heating duct system.
Also consider the rest of your home. You can match the doors, trim, and flooring to the rest of the house to provide a sense of comfort and consistency.
These improvements will increase the value of your home should you decide to put it up for resale and property taxes. Depending on the magnitude of the cost of the improvements, you may see little or nothing in the way of profit. However, a finished basement will improve your chances of selling your home and allow you to enjoy the new living space in the meantime.
Unprofessionally finished basements
When a homeowner finishes a basement without obtaining the proper permits or matching the rest of the home, the homeowner may have caused a potential problem for resale. While it may be a nice space for you and your family, it won’t add to the overall value of your home. Most appraisers will refuse to count square footage as finished, and this could have a big effect on potential buyers, unless the basement has been finished through proper permitting.
Some potential buyers will love the extra living space, but will be reluctant to pay more to buy the house unless the job is done right. The cost of the house will always be a few percent more than the value, and if you apply for permits after the fact, you will most likely be charged a small fine on top of the cost of the permits.
