Borrowing money would be risky at this stage of the game.
If the hole for the toilet is already there, you could install that part yourself...or to reduce your costs, you buy the materials, and just pay to install.
Adding a bathroom to the basement does add to your home's value. That being said, there are certainly other factors to consider. First, it is important that you are careful not to "over-improve". I would estimate that a fully finished basement could add $4k - $6k in value to your home, so...you want to make sure you don't spend more than that when you add it.
Another factor to consider is the current layout of your basement. Do you have a full bedroom down there? Is is used as a recreation room by the kids? Uses such as these would increase the benefits of having a full bathroom on the same level. For example, the benefits of having a bedroom in the basement may be reduced if the occupant of that bedroom has to walk up a flight of stairs every morning to take a shower.... Thus, adding a full bath would add value to your home on its own...while legitimizing an existing layout that may have otherwise been viewed as awkward.
Hope this helps!
How are you doing?
No, I would not "borrow" money to put in an extra bathroom, just price it accordingly.
Warrenton is a great place to live. I have sold homes there, and many "city slicker's" would buy your home "as is", as long as they felt the price was right.
There are very few "active" listings in Northern Virginia now, and if the buyer of your house can qualify for the "new and improved" home buyers tax credit, you have to have a "ratified" contract by April 30, which is only 5 months away.
Just to review:
Anyone who is a First Time Home Buyer, or hasn't owned a "primary residence" in the last 3 years, and makes under $125,000 a year if single or $225,000 if married can qualify for up to an $8,000 tax credit.
And perhaps even more important in your case, any homebuyer who has owned and lived in their current "primary residence" in 5 consectutive, of the last 8 years, and meets the same income maximums, is qualified for a $6,500 tax credit is single, or $3,250 credit if married.
Also, (and I am thankfully almost finished), the FHA is considering tighening its lending requirements to make it tougher to qualify for an FHA loan.
What this all means to you is, if it were me, I would give the place a good cleaning, slap on some fresh paint, and get it on the market ASAP, as we don't know yet how all these new regulations are going to effect the market.
Sorrry for all the "hot air", and hope this helps,
Johnny "Culdesac" Yankoviak
I don't know your market, so check with a local Realtor.
In principle, it depends on what other homes, similar to yours (comparables), are like.
If your home only has one bath, then definitely a second bath is essential.
If most homes that have basements have baths, then, if you could afford it, I would.
A Realtor should be able to provide you with a Comparative Market Analysis, help you determine the likely sales price of your home, and your approximately net profit.