A basement is a very good place for many purposes. It can be used for storing things and as a room for playing games, music, and also living. But for using the basement for any of these purposes, you would certainly want a well-finished basement. There are many people who plan how the basement is to be finished and what methods it is to be finished in, but they miss out on the significant consideration of the cost.
Cost of Basement Finishing
It is calculated that you can finish your home basement for less than 50% of the cost which would be required for making an addition for your house or any home improvement job. It has also been estimated that more than 90% of the amount invested in basement finishing is recoverable when the house is sold. If you are planning to finish the basement all by yourself without the need of hiring a contractor, you can save a considerable amount of money.
By a Contractor
If you decide to take the help of a contractor in finishing the basement, you need to be ready to spend up to $50 per square foot. However, this cost is estimated on the higher budget, as the normal rate for this type of work is somewhere between $25 to $30 per square foot for a basic setup. Just for bettering the appearance of the basement, a majority of home owners choose certain upgrades for the project, which may increase the overall cost by $2 to $3 per square foot.
According to many home construction companies, a majority of the overall cost is the labor expense. Just 25 to 30% of the aggregate cost is for the material required. The rest 70 to 75% is for labor and miscellaneous expenses. This division between the expenses of basement finishing is very uncommon in any other remodeling job. So if you take the task of finishing your home’s basement as a do-it-yourself task, you can surely save a lot from your budget which is required to meet the labor expenses.
Comparison of Basement Finishing Prices
If you take the services of a contractor, the aggregate cost for finishing a 2,000 square feet basement would be around $53,000. This will result in an increased house value of approximately $49,000, a return of 90% on the investment. But if you finish the same-sized basement yourself, the average cost per square foot will be somewhere around $14,000, which will be a saving of about $39,000. So here, you easily come to know the benefits of do-it-yourself basement finishing and an increase in the resale value of your property.
Other Cost Considerations
As you have just seen that you can save a lot by providing your own labor, the final cost of the project will largely count on which design elements you consider in the plan. If you consider adding a lavatory to your basement, it will cost you around $4,500. If you decide to include a wet bar in the basement, the final cost may increase by $5,000 to $10,000. If you intend to use a part of the basement as a sleeping room, the cost of doorways and windows is to be thought upon. These items may be easy to install but also might be expensive. It has been observed that the cost of basement finishing is increasing by 7% every year.
The aggregate basement finishing cost predominately depends on the modifications you make at the time of finishing, and how you desire to use the basement. But the bottom line is that furnishing the basement is a sure way of increasing the house value. The cost would also depend upon your decision for basement remodeling, flooring, or waterproofing. Moreover, before hiring a contractor, you need to discuss in detail about his labor expense and the estimated cost according to your requirements. This is a good way of planning your budget according to the average cost.
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