Posted by PBoone on August 06, 1999 at 13:43:16:
Rick,
The why I cannot answer but what I do know is the Reselling of a property with a basement adds to the list of potential buyers.
pat
Why do finished basements add little value? - Posted by Rick Key CO
Posted by Rick Key CO on August 06, 1999 at 13:18:49:
All,
I have noticed here in CO that a finished basement seems to add practically no value to a home (even “conforming” basements). Also they are often listed with just the top floor specs ie 2/1 even though they may have 4 bedrooms just 2 are in the basement. Any idea why this is?
TIA -Rick
Re: Why do finished basements add little value? - Posted by Aaron
Posted by Aaron on August 06, 1999 at 17:53:38:
The reason for this, as far as the added value, is largely based on cost. The cost to put in a basement is significantly less then that of an above ground floor. I know one appraiser in my area that will adjust (for an average quality, average condition home) $28 per square foot of area above grade. For basement area he will adjust $12 per square foot, and an additional $8 per square foot for finished areas. These of course are just one appraiser’s estimate on these adjustments, and will likely vary quite a bit from appraiser to appraiser.
As far as the room count, it’s just commonly considered to only count the rooms that are above grade, with the basement rooms commented on separately. Not all properties are listed this way. But at least in my area, the majority of them are.
Hope this helps.
Re: Why do finished basements add little value? - Posted by HR
Posted by HR on August 06, 1999 at 17:12:48:
Rick,
Check with your local realtors; they will know. In my area, the added square footage certainly does count, but usually at a different rate because of a difference in quality. For example, on my house, my second floor can get $75/sf while my basement-turned-first floor only pulls about $50/sf. $50/sf is still better than zero, though. Check with your local realtors to find out why.
HR
Re: Why do finished basements add little value? - Posted by DaveM(CT)
Posted by DaveM(CT) on August 06, 1999 at 16:20:04:
Rick,
From what I’ve seen in my area, rooms in finished basements count, both in SF for living space considerations, and in value of the home in general. I am referring to “conforming” rooms as opposed to something that the building dept. would laugh at.
Believe me, if a listing realtor around here sees a closet with extra space, it’s called a bedroom. Doghouses are outbuildings, if you know what I mean.