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Matthew, Other/Just Looking in Grosse Pointe Park, MI

How much does the value of a house decrease if it does not have a basement?

Asked by Matthew, Grosse Pointe Park, MI Tue Oct 16, 2007

Our house is larger (~2100 sq ft) than most around it, but is on a crawl while the majority of houses in the surrounding area have basements. We have ample closet storage throughout the house and we feel this might make up for a lack of a basement

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Closet storage will not usually make up for the lack of a basement in SE Michigan for one reason. When people search for homes, they click the basement button and so does their Realtor. Homes without basements GENERALLY are getting less showings right now than those with.

There is no standard for the value of a basement. It would be based on other comparable homes in Grosse Point.
Web Reference: http://mioaklandcounty.com
1 vote Thank Flag Link Tue Oct 16, 2007
Maureen Fran…, Real Estate Pro in Birmingham, MI
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The difference in value of properties w/ or w/o a basement may have some fluctuation based upon the volume of buyers in the market and inventory levels.

In a tight inventory with many buyers, those buyers may compromise on their list of "wants" and the differential between home w/ and w/o basements may carry an average figure as supported by recent comp sales. Contrast to a cycle with strong inventory and fewer buyers, you are looking to capture the attention of a single buyer who might prefer a basement. In order to swing the pendelum to your favor, the discounted price, or savings the buyer gains has to be a strong enough incentive. Refer to recent comps to evaluate current data with the help of a local Realtor.

There will always be buyers who have basements on a list of must haves.
0 votes Thank Flag Link Tue Oct 16, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
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Matthew,

As Pam said ,have a REALTOR(R) pull comps for houses similar to yours, in your neighborhood, with and without basements to determine the difference.

And as Maureen said, either you have a basement or you don't and nothing really offsets that, because when people search for a home that meets their criteria, if they want a home with a basement, they will search for homes with basements and yours will not even make it into their list of possibilites.

So once you have your comps, you can acurately price your house, sans basement. And for this question, that is really the goal, deriving an accurate price. Now you can list your home with a realtor, with a true fair market price and get the home sold to someone who is NOT looking for a basement.

The lack of a basement to a buyer who demands a basement cannot be overcome. However, for the buyer who does not demand a basement, he wants a house that is priced reflective of the missing basement. Once you do that it will sell, if marketed properly.

Get it priced right and git'er done!
Web Reference: http://www.thenelmsteam.com
0 votes Thank Flag Link Tue Oct 16, 2007
Matthew have you Realtor pull comps for you on homes similar to yours and without a basement. They will be able to guide you on establishing an accurate value.
0 votes Thank Flag Link Tue Oct 16, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
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Matthew, There are several factors that affect the value of a home, location, condition, and amenities are the three big factors. If your home is lacking in any of these factors, the value may be reduced.

According to a past survey the Detroit area valued a basement around 15 percent. Your specific area may be more or less than that amount. Additional information can be provided by email if there is an address.
0 votes Thank Flag Link Tue Oct 16, 2007
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