If I had to chose between finishing out a basement or doing the multi-tier decks, I would finish the basement out. Even though a finished basement can't be fully "captured" on the sq.ft. of the home, a deck, you would not get any sq.ft. "captured". Price per sq.ft. is what a home is measured for at the end of the day, and the sq.ft. in the basement will give you a better "return" then the decks.

Based on my experience selling homes in the $500k-$1million range, most of my clients would prefer a finished basement to the decks. Plus, most homes in this price range have at least 50% of the basement finished(if there is a basement).

I have a different approach that you might want to consider...since appraisers have stipulations when appraising properties, you might want to seek their opinions to this question as well. I know for a fact that there is an apprasing stipulation regarding valuation of square footage below grade level...this would impact your situation. I do agree with the previous response in finishing out the walk-out basement...buyers expect that to be done in your given price point. However, with how lenders are evaluating appraisals, the question wouldn't hurt to be asked from that industry perspective as well.

I would say to finish the basement. It adds usable sq/ft to the home. In the million dollar range, in Zionsville, you will have some resale competition and will need all the finished sq/ft you can get. Decks are nice butI 'm afraid if you went that route, you would always end up with the resale objection of not having the basement finished. In the 1 mil range in Zionsville, I think a finished basement would be expected. Lots of nice model homes in Stonegate with 5000-8000 sq/ft plus finished basements/theators/wet bars, etc. in this price range that would compete against you.