Home Selling in Oxford>Question Details

Nancy, Home Seller in Oxford, MI

Is it worth it to finish a basement in this market if we plan on moving in a year or so?

Asked by Nancy, Oxford, MI Fri Feb 5, 2010

We live in Oxford, Michigan and live in a nice sub division, but the home values have drop by roughly $20,000.
We plan on moving in a year or so and thought finishing our basement would help increase the value of our home. It is plumbed for a bathroom, but the layout is split in half. We currently have a 3 bedroom 2.5 bathrooms. Is it worth it? Will it increase the value enough in this market to make a real diffrence?

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Susan Gesaman’s answer
In general I agree with all the answers from the Michigan agents. Our local market has been trying to say the least.

If a project will add value for your family while living in the house and return on the money spent is not an issue, then by all means finish the basement and enjoy it! Most homes with finished basements will show more favorably than homes with unfinished basements.

If the main concern is increasing the sales price of the home, then a little research should be done before undertaking the project. You really need to look at what other homes in your area sold for, what didn't sell for , and what is currently for sale. Go out and look at open houses or active listings to get an idea of what is out there.

One additional thing to consider is how will the project be paid for? If this project plus what you currently owe on the home will put you underwater, that will create additional challenges when you try to sell the home.
0 votes Thank Flag Link Wed May 12, 2010
Hi Nancy,

Without completing a market analysis of the selling activity that has occurred in your neighborhood, it is hard to give a definitive answer. However, in general, in the current market conditions, you would need to make this decision based more on what the finished basement means to you and your famly rather than what it would mean to the value of your home.

Without question a finished basement is a feature that all buyers enjoy. When compared to similar homes in the same price range, the finished basement may provide the "tipping point" in the buyer's decision-making process. However, in this market it would take a particular buyer who is willing to pay a higher price for a home with a finished basement when compared to similar houses with no finished basement...not all buyers today are willing to do so.

Please let me know if I can help you in any way.

Shirley Coronado
0 votes Thank Flag Link Fri Feb 5, 2010
From this area and my past client projects. As any basement remodel the value usually adds about 3 times the value that you invested, depending on the quality of material and work. In other words spend $5,000.00 it should add about $15,000.00 to home value. Good Luck with your project and future home sale.
Web Reference: http://www.maryjodaly.com
0 votes Thank Flag Link Fri Feb 5, 2010
Very difficult to say, there are too many variables to give an educated answer. I would recommend you meeting with an Agent in your area. They can come and evaluate your home and your market. They may recommend spending that money somewhere else on your home.
0 votes Thank Flag Link Fri Feb 5, 2010

Maybe yes; maybe no. How's that for an answer? :-)

We could provide you with some generic answers and stats, but a local professional should really couple that with a tour and analysis of your home, the immediate market, your plans and goals, etc. Only then can you properly be counseled what to do. For instance, the answer might be yes, but don't spend more than, "$x."

If you would like further assistance, feel free to contact me. Thanks!

Derek Bauer, Associate Broker / Realtor
Real Estate One
Web Reference: http://DoorToDreams.com
0 votes Thank Flag Link Fri Feb 5, 2010
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