Basement remodeling

"A cost difference of about $100 per square foot between the basement remodel and the addition."

Homeowners should consider their basement when looking for additional space. The cost of remodeling an existing space is much less than new construction. Today basements are serving a different purpose than they have in the past, besides being used as a family recreation room, it is becoming more and more common to see people converting their basements into guest bedrooms, home offices, and even luxurious master suites.

Basement remodeling vs. New addition
According to The National Association of Home Builders about 68 percent of homes in the United States have basements. Chances are you have a basement that you are not utilizing to its full potential. Remodeling your current space is much more cost effective than adding an addition. When you construct a new addition, you expand the structure of your house. This will include excavation, foundation work, exterior walls, siding, and roofing just to enclose the space. Then you will need to add the necessary utilities which include: electrical wiring, plumbing, heating and cooling, as well as the things you need in order to finish the interior of the new space. When remodeling your basement most of your remodeling dollar goes to cosmetic items as well as new features, and fixtures. (Continue below)

In the 2005 Cost vs. Value Report, an annual study conducted by Remodeling Magazine in cooperation with the National Association of Realtors, the national average cost of a “mid-range” family room addition without a bathroom is just under $137 per square foot. By comparison, the same study pegs the cost of a basement remodel with a bathroom and wet bar at just under $66 per square foot. If you add the cost of a bathroom and wet bar to the family room addition, you have a cost difference of about $100 per square foot between the basement remodel and the addition.

Equity
Another aspect of remodeling is equity and payback, or how the project will affect the value of your home currently and in the future when you decide to sell it. It is important to ask yourself this question before starting any home remodeling project. The amount of equity and payback you may receive differs depending on location, market conditions, and the quality of the remodel. According to the Cost vs.Value Report, very few of the most popular home improvement projects yield 100 percent cost recovery, but basement remodeling holds its own with just over 90 percent cost recovery as a national average, an increase from 79 percent in 2003. (Continue top right)

Top features
The top features that homeowners are going after today are bathrooms and wet bars. Bathrooms give homeowners added convenience and accessibility. They are also convenient for any guests that may be staying in your basement. Wet bars create a place where everyone can mingle during social events. Most wet bars contain a compact refrigerator which adds convenience so you don't have to go upstairs to get a drink when your thirsty. They also have microwaves which is great if you want to warm something up or even make popcorn just in time for that favorite movie of yours.

Cost
Many factors change the cost of a basement remodel, they include: size of basement, choice of material, additional features ( wet bar, entertainment center), permit costs in your city or county, and finally the contractor that does the work.

Here are some rough estimates for a 1000 square feet basement.
1. Standard finish is between $29,500 - $32,000
2. More features is between $32,000 - $37,000
3. Fantastic features is between $41,000-$100,000

What direction you want to go is up to you and your family. A basement remodel is a cost effective way to add livable space to your home. However if you have already utilized your basement and you need more space an addition is the best way to increase your living space.