If your home is bursting at the seams from a growing family, relatives returning to the nest or too few rooms serving too many uses, check out the bonus space underfoot. Finishing a basement greatly enhances your home’s value right along with your family’s comfort, especially when it comes to accommodating multiple generations under one roof.
Basements can serve as valuable bonus living areas, whether transformed into full-fledged apartments, home office retreats or entertainment zones. And finishing an otherwise unused basement is a cost-effective way to expand your home’s livable square footage, without the environmental impacts that accompany an addition or other new build.
Advantages of finishing your basement
- If you’ve been in your home for a while and have built up equity, it’ll likely be easier to finance a remodel with a home equity line of credit than to secure a mortgage to buy a whole new home.
- Depending on where you live, a mid-range home addition can cost hundreds of dollars per square foot, while renovating an existing basement space will cost far less.
- As you transform your basement into a new living space, you’ll also be able to reclaim main-floor areas whose intended uses went by the wayside as your living situation became more crowded. For example, you can move that treadmill out of the bedroom and into your new basement gym.
- You’ll be turning an underused space into an asset that will not only enhance your current enjoyment of your home but add dollars to the selling price when you finally put it on the market someday down the road.
But is basement finishing truly worth the cost? In most cases, the answer is yes. Remodeling your basement gets you one of the biggest returns on investment at around 70%, which makes refinishing your basement one of the best ways to add value to your home while bringing the benefit of entire extra floor’s worth of space to use as family recreational space, home office, or even a very rentable room to offer up on Airbnb. Heck, you might even earn back a good part of the basement remodeling expense in the process!
Tom Silva from This Old House Talks Basement Finishing
Read Transcript
LESLIE: Well, most basements are a little more than a place to cultivate cobwebs and of course, store tons of cans of paint.
TOM: Ah, yes. But fixing up a full-height basement can dramatically increase the usable living space in your house, at a cost that’s far lower than adding on.
Here to talk about basement-finishing options is This Old House general contractor Tom Silva.
Welcome, Tommy.
TOM SILVA: Nice to be here. Thanks.
TOM: So, not every basement is a good candidate for finishing, right? What are some key considerations before you start the renovation?
TOM SILVA: Well, water is the big enemy. You’ve got to make …
TOM: That would be followed by water and more water, right?
TOM SILVA: Water and more water because water is a big problem-solver. So, water and moisture, dampness, that’s the culprit that you have to deal with.
TOM: And we’ll start by talking about that, because I think a lot of folks think that water in the basement is always going to be a very expensive solution. But in the 20 years I spent as a home inspector, it always seemed to me that gutters and grading, followed by grading and gutters, were the number-one and number-two source – and clean gutters, right – of wet basements.
LESLIE: And clean gutters.
TOM SILVA: Yeah.
TOM: Because when that water comes in after the heavy rainfall, it’s always starting at the roof; it’s not a rising water table.
TOM SILVA: Exactly. I mean I would say that people don’t understand. First of all, they have to keep the gutters clean, because the water will roll over the gutters.
TOM: Right.
TOM SILVA: And guess what? It drips down around the perimeter of the house and it will get into the basement. So you want to make sure that your gutters have the right pitch, you want to make sure that the gutters are clean and you want to make sure that they have a means of egress. So, in other words, the downspout is away from the side of the house.
TOM: Every gutter installer out there only turns it out about a foot and puts another splash block for another foot, so you’re dropping it within 2 feet of the foundation, right in the backfill zone where all the soil is pushed back in the foundation, not as compacted.
TOM SILVA: Yeah.
TOM: And of course, it rolls right back in.
TOM SILVA: Exactly. And it will seep into the basement, causing all kinds of problems.
LESLIE: You know, I think a lot of people don’t pay attention to what their local building codes might be. You might not be allowed to have a basement or a bedroom in a basement or a bathroom in a basement. That all really varies upon where you live, right?
TOM SILVA: Exactly. And that’s why the idea of getting a building permit to do something helps you out, as a homeowner. The building inspector is not the enemy; he’s just trying to tell you how to do things right and making sure that whoever you hire to do the job gets it done correctly.
LESLIE: Right.
TOM SILVA: So he’s going to check. You want to make sure that there’s the right ceiling height. You don’t want to be lower than 6-foot-8. That’s the minimum.
TOM: Right.
TOM SILVA: You want to make sure that you have egress. So you can’t have a bedroom down there if you can’t get out. So the window height has to be a certain dimension off the floor. Has to be lower than 42 inches off of the floor. You want to make sure that the window size is wide enough that you can get out and you have a space to get out into.
TOM: And speaking of space, when it comes to basements, that is the place that all the utilities end up, for all of the obvious reasons, where the long plumbing runs are, the duct runs, the wiring runs. So, concealing all those is a key consideration of a basement-finishing project, right?
TOM SILVA: Yeah. Depending on the extent of the basement work that you want to do, it can cost you a lot of money to move a lot of that stuff. So you have to figure out ways to go around all of those things. And it can be tricky but it can make a huge, huge difference.
TOM: And of course, you don’t want to do something like wall over your main water valve.
TOM SILVA: No, you want to be able to – you can get to the water valve, in case there’s a problem upstairs in the house. And you want to make sure that you don’t close-in the electrical panel, because you have to have 3 feet of space in front of that electrical panel and it has to be seen.
LESLIE: And I think materials choice. I mean that’s got to be key in a basement space, especially because no matter what you do to control that moisture, you’re still going to have moisture down there just because of the inherent reasons of what the materials are. So you’ve got to look at drywall that’s not paper-faced, right?
TOM SILVA: Exactly. You want to make sure that you try not to use any product with cellulose, like wood fibers. That’s great breeding ground for mold. If you use a pressure-treated wood, it’s pretty good. I’d prefer a metal stud; it works great. I also want to make sure that I close off the area with a good vapor retarder or a vapor barrier.
So you either have to seal the concrete floor – because if the house is probably older than 50 years old, it probably doesn’t have a vapor retarder under the floor anyway. So you’ve got to stop that moisture from migrating up through the concrete.
And then you’ve got to make sure that you can seal the walls. Because if there’s not a sealer on the wall, you’ve got to worry about the moisture getting into the wall cavity. And foam insulation works great for that. You can spray-foam the walls. A closed cell is great because it’s water-resistant, waterproof and a great vapor retarder.
TOM: In terms of the framing of the walls, do you prefer to kind of frame basically against that wall or maybe leave a little gap, if you do metal framing?
TOM SILVA: Leave a gap. Yeah, you want a gap in your studs, whether it be wood – as long as it’s on a pressure-treated – there’s a gap between it that when they spray-foam, they can lay it in behind there.
TOM: Right.
TOM SILVA: If you don’t have the money or the budget to use a spray-foam insulation, what I like to do – and I’ve done it for years – is I take a polyethylene and actually staple it to the back side of the sill and let it droop down over the foundation and bring it out onto the floor. Then you can apply your pressure-treated sill to that frame …
TOM: Right on top of the polyethylene?
TOM SILVA: Right on top of the polyethylene. Then you stud up your wall.
And now, if you don’t want to use a spray-foam insulation, I’d use a mineral wall or a thermal-fiber insulation.
TOM: Right.
TOM SILVA: And then just apply it to the wall cavity. It makes a huge difference and it’ll save you some money if you don’t want to use the spray foam.
TOM: Sure. Now, let’s talk about the moisture that’s in the basement that’s left over. Let’s say that we did do everything that was necessary to get the water from coming in. But now, because of the – it’s below grade, we do have high humidity. What kind of dehumidification do you plan for?
TOM SILVA: Well, you want to have dehumidification. You also want to bring in fresh air, so you use an air exchanger, which would circulate the air on a regular basis.
TOM: OK.
TOM SILVA: And sometimes, just by doing that and using the vapor retarders or the vapor barriers, you’d be surprised it’ll solve that problem of moisture. If you worry about water, you want to make sure that you have a sump pump there and you want to make sure that you have a battery backup on that sump pump so that it doesn’t flood.
Don’t use carpet. And use materials that are good for so-called “moist areas.”
TOM: I’m so glad you mentioned that carpet thing, because that’s sort of a pet peeve of ours. So many folks have carpet in the basement and it’s just a breeding ground for everything that’s not good for your air.
TOM SILVA: Yeah.
TOM: Dust mites and allergens just stick right to that. They’re sustained by the moisture, sustained by the air and it’s really not healthy.
TOM SILVA: Right, right. Well, they have laminate floors and vinyl floors and tile floors that you can use.
TOM: Engineered hardwood, too.
TOM SILVA: Exactly.
LESLIE: And there’s always area rugs.
TOM: Yep.
TOM SILVA: Yeah, to dress up …
LESLIE: You can get that same coziness.
TOM SILVA: Yeah. I love area rugs because it adds a little bit of a color to the space and it defines the area. And it’s great for wear …
LESLIE: I sense a frustrated decorator in Tom Silva. He’s like, “I also do interior design.”
TOM SILVA: I don’t – no, I don’t do interior design. Nope.
TOM: He appreciates good interior design.
Tom Silva, the general contractor and sometimes decorator on TV’s This Old House, thanks so much for stopping by The Money Pit.
TOM SILVA: Well, thanks, guys. It’s nice to be here, as always.
LESLIE: Alright. You can catch the current season of This Old House and Ask This Old House on PBS. For local listings and step-by-step videos of many common home improvement projects, visit ThisOldHouse.com.
TOM: And This Old House is brought to you on PBS by State Farm. Like a good neighbor, State Farm is there.
Options for basement finishing
There are many ways that you can refinish a basement, and most of them do hinge on what you want to use the finished space for. For example, if you want a theater room, you’ll need to soundproof the walls as well as waterproof the basement and finish the space, which will add to the cost and to the scope of work.
For general purposes, most people opt for a generic basement finishing system, which gives you a blank slate for which you can decorate or purpose the rooms. However, if you have a purpose in mind to start, you may find it more cost effective to simply finish in the way you desire right from the start, rather than beginning with a generic remodel and then adding finishing costs at the end.
Basic basement remodeling
The basic basement remodel has an average cost of around $55,000 for a 600 square foot room with a bathroom attached, or around $92 a square foot just for the basement remodel itself.
This includes waterproofing the walls and floors, framing the walls and adding either drywall and paint or a basement finishing system, and completing the floors in tile, carpeting, or engineered hardwood. If you choose to include a bathroom in your basement remodel, the cost for this particular area rises to around $125 a square foot due to the need for plumbing and fixtures.
Finishing a basement can be a complicated job, however, and some aspects may be beyond the scope of most do-it-yourselfers. One of the quickest ways to transform the space is with a comprehensive basement finishing solution like the Owens Corning Basement Finish System™. Wall panels with built-in thermal and acoustic insulation are professionally installed around the room, instantly turning a concrete basement into usable space without the months-long disruption and mess of a traditional drywall method. The panels are also mold and mildew resistant, with durable dent- and stain-resistant construction that makes a perfect backdrop for any room design you have in mind.
How to know if it’s worth finishing your basement
The reason that basement remodeling can be so costly is that there are so many different aspects to consider. Many people don’t realize exactly what goes into the finishing process, but there are many things you’ll want to keep in mind as you go, including:
- Water issues: Basements can be prone to water issues, and these will need to be addressed if you plan on finishing the area. It’s common to address basement leakage by installing sump pumps ($550 each), French drains ($1,000 – $1,500 each) or vapor barriers ($50), with an average cost of waterproofing around $5,000 for most basements. However, the great news is that these systems are almost never needed! Most basement water issues including basement dampness, or leaking basements can be fixed with simple and inexpensive exterior improvements to keep water away from the foundation like a properly designed and installed gutter system, as explained in our comprehensive post on how to stop basement leaks.
- Square footage: The amount of space you have can impact what you plan on doing there. Take a look at what the usable space is, then measure this separately from the basement as a whole before you make your final decision of what to do with the space.
- Foundation: It’s common to address foundation concerns at the time of the remodel. If your foundation has cracks or settling, you may need to budget $5,000 to $7,000 for repairs.
- Permits and codes: Your basement remodel will likely require a permit. In addition, there are many codes that can impact the area, such as ceiling height. Always look up the associated codes for your area before you begin, and budget for the permit – about $430 – as well.
- Framing: To finish the walls, you will need a frame. This will shrink the size of the room by about 8 – 12 inches overall, so you will need to take this into consideration. The costs of framing is around $5,300.
- Insulation: Basements tend to be colder than the rest of the home, so it will need to be insulated to keep it warm. Insulating a single room in the basement will cost between $1,200 and $1,800.
- Lighting: Basements have little natural light, so you will need to consider the lighting as well. Recessed lighting works well if you have the ceiling space for it, costing around $780 to install.
- Heating: Your HVAC probably already extends to the basement, but in some cases it may not. If that’s the case, you will need to run new ductwork for around $2,000.
How to save money on basement finishing
Finishing a basement can be an extremely costly endeavor, especially if you aren’t entirely sure how you’re going to use the space. Since the most cost-effective way to finish a space is to do it correctly the first time, generic basement remodels tend to cost the most in the end, because by the time you complete the space to meet your needs, you’ve added onto the already high initial cost.
If you’re truly unsure of how best to proceed, try some of these cost-saving strategies to finish your basement without breaking the bank:
Leave the basement ceiling unfinished, and simply paint the ducts and pipes instead. This can also be a good solution if you don’t have the height to create a dropped ceiling.
Do a partial remodel, and leave some sections unfinished for storage. Just make sure you waterproof everything to prevent damage, and you can always finish the storage areas later if you like.
Polish the concrete floor to save money on finishing it. Polished concrete floors have a lot of style, and you can soften them with throw rugs. This is a significant saving over porcelain, hardwood, or wall to wall carpeting.
Opt for drywall over basement finishing systems. Yes, you still need to waterproof the basement , but the overall cost is lower and you can customize later for less. And here’s an important tip for drywall selection. Typical drywall consists of layers of paper over a plaster core. Paper is mold food – which is why a better option is to use mold resistant drywall .
Use quality materials for the structural sections, like the stairs, and partitions between rooms. They’ll last the longest, and will save you money in the long run. Consider using metal studs over wood to further reduce the presence of mold attracting components below grade.
Reasons to finish your basement
If you need extra space, and want to enhance your property’s value at the same time, refinishing your basement makes a lot of sense. It’s not always the best decision if you plan on selling right away, as finished basements don’t get seen as equal space to the rest of the home, but merely as more usable real estate than an unfinished space.
Try to determine your needs before you remodel to get the best results and to save money on unnecessary finishing items. With a little forethought as to how you’ll use the space, a finished basement can become a valuable addition to your home.
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