Giovanni, Real Estate Pro in 11218

Does a basement really matter for resale if a house is nicely renovated???

Asked by Giovanni, 11218 Fri Mar 25, 2011

As an investor, I am negotiating to buy a single family house (as short sale) in the snug harbor section of staten island. The house is on a typical 25x100 lot and is approx. 1300 sft. I intend on renovating the house and providing all of the amenities a new house would have. So things like the heating unit, washer dryer etc would be on the ground floor, tastefully hidden. So my question is "Does a basement matter"?

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13
Scott Hulen’s answer
In our market it matters to the tune of $$$ and days on market. Expect a 30-40% hit on price and add 180 days to days on market. As a builder I have been asked why dont I do homes on slabs my answer is I dont want to have to live in it because it wont sell in our market.
1 vote Thank Flag Link Fri Mar 25, 2011
Giovanni,
I assume, after renovation, you are going to sell. Have a local agent run a report on sold and active listings without basements. The information should include days on market, price per square foot, etc...
Do the same with homes with basements. This information will tell you what local buyers are doing.
My guess is, if you are buying at a good price, you should have no problems.
By the way, I am from Kansas and we sell quite a few homes without basements!
Good luck!
Brad
0 votes Thank Flag Link Fri Mar 25, 2011
Yes. It does matter.

Compare non-basement square footage with non-basement square footage and basement square footage with basement square footage.

If you're serious about being an investor try finding a book or course on determining value using comparable sales. You may want to try your library or bookstore first. I know I've taught this numerous times in courses I've done for investors over the last 8 years or so. Important knowledge to have in my opinion.

I hope that helps.

Sincerely,

James
0 votes Thank Flag Link Fri Mar 25, 2011
Giovanni,
I would look at what recent sales show for similar homes with or without a basement to make that decision. As an investor and if you are going to rent it out, I would say most likley not. You may be able to be more competitive with your rent if you can purchase this home for less money. It's all about cash flow and appreciation as an investor.

All the best,
Gary Geer
http://www.GaryGeer.com
0 votes Thank Flag Link Fri Mar 25, 2011
Yes, While it does not count for square footage as a selling point. Home buyers like them for extra living s[ace and storage. You should include it when renovating
0 votes Thank Flag Link Fri Mar 25, 2011
I believe that it matters, as customers tend to add the expense of finishing the basement when they are determining how much to offer for the home. Although it is not supposed to be considered as living space, most people do.
0 votes Thank Flag Link Fri Mar 25, 2011
In Northeast OH, a basement matters. And, for many Buyers, a finished basement matters. For Buyers of condos, a basement normally does not manner.
0 votes Thank Flag Link Fri Mar 25, 2011
Depends on where you live. I live in Oklahoma and most of them have been flooded. I have a girlfriend from Nebraska who ABSOLUTELY loves basements, she had one when she lived in Ohio, and now back i n Nebraska. I wish you the best on selling...I know I would love it, just make sure it is well lit and inviting
0 votes Thank Flag Link Fri Mar 25, 2011
A basement could be attractive to many buyers but if you are asking about the value in $$$$ of that basement you need to know that unless the basement is permitted as a "living space", you can not include that square footage. Also, any space that is not permitted as "living space" can not be included. In short, the value is determined by: LOCATION, SQUARE FOOTAGE, NUMBER OF BDRMS & BATHS, QUALITY OF SQUARE FOOTAGE.
0 votes Thank Flag Link Fri Mar 25, 2011
Some don't care but most would like it whether it be for storage purposes and/or additonal living space like a family room, for instance. In short, you can't go wrong if you have one!
0 votes Thank Flag Link Fri Mar 25, 2011
Yes, a basement does matter. All things being equal people would prefer a basement over no basement. A clean, dry basement is just about the best storage space any house can offer. Easily accessible, lots of space, and they are almost expected in houses in Staten Island. Many home buyers want the option to finish the basement in the future.
Web Reference: http://www.clovelake.com
0 votes Thank Flag Link Fri Mar 25, 2011
Hi Giovanni

Does a basement really matter for resale? That depends on the buyer's wants list.

good luck
0 votes Thank Flag Link Fri Mar 25, 2011
Hello Giovanni,
As long as there is an additional area in the home like an attic or another structure that can provide storage I wouldn't think that a basement is necessary. Sometimes the water table in certain areas is high so there would be no basements in homes in that area.
Hope that helps.
Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Fri Mar 25, 2011
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