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Finish your basement profitably

 Bill Rinehart, Realtor®/Salesperson

Coldwell Banker The Real Estate Centre, Brokerage

 Local 705.436.5111 Toll-Free 1.877.436.5111

The Profitably Finished Basement

For general information on materials, workmanship and scheduling in a profitable renovation, please read Renovating for Fun and Profit.

$349,900 Builders home in Innisfil near lake. 1 year old 1900 sq ft on large lot. Click pic for more houses.

Why bother?

Buyers love finished basements. A fully finished basement in a bungalow doubles the living space inside the house. In a 2-story home, its adds 33% to the total living space.

How could anyone NOT love that?

Sadly though, more often than not, the buyers do the walk-through and lament that it would have been better if the sellers had left it unfinished.

The buyers are often turned off by either the layout of the design or the choice of finishes. The most sellable basements are the ones that were "professionally finished." The least attractive are the ones "lovingly finished by the owner."

The problem is, buyers are not willing to pay any more for the professionally finished basement than for the handyman basement.

The value that a finished basement adds to a house is not enough to cover the costs of materials and professional labour. It is enough, however, to cover the costs of materials. To finish the basement, and make money on it, the labour has to be free.

You can only recover the costs of finishing a basement if you are providing the (free) labour yourself.

Get Permits

Back in the olden days, the beautifully owner- finished basement would not have been a problem for most buyers.

These are not the olden days though. These are the new days when buyers spend a year or two watching real-estate related television shows before they buy.

As a result of the Holmes on Homes TV show, today's buyers even suspect the integrity of the tradesmen on the "professionally finished" basements.

When buyers see, on the Seller Property Information Statement, that the basement was renovated by the homeowner and that there was no Building Permit from the city, and no inspections on the electrical, plumbing or structural work done, they will run, not walk, to the next house for sale.

From day one, your primary objective has to be to establish, in your future buyer's mind, that the work you did was done properly. At every step of the renovation, get permits and documentation that you can use in the future as proof that the work was done at or above the standards set out in the regulations.

$349,900 Builders home in Innisfil near lake. 1 year old 1900 sq ft on large lot. Click pic for more houses.

Buy the right house.

Size matters.

Buy the largest bungalow that you can afford rather than a two-story house.

If you're trying to add value to a property by increasing its living space, it make sense to buy the house with the most unfinished living space. With a bungalow, whatever living space you have on the main floor is mirrored in the basement. In a two-story, the basement is only a fraction of the above-ground space.

Buy high and buy dry.

If you have to duck your head to get into or around the basement, move on. The attractive finished basements have headroom and feel light and spacious. Low ceilings and bruised foreheads are for torture chambers, not houses.

Finishing a wet basement is like taking your date on a romantic ride in a leaky rowboat. A good home inspector will find the dampness behind the drywall. He'll also help you detect damness in the concrete and be able to tell you when to buy and when to move on. Use one!

And then there was light!

Dinky windows only appeal to dinky people.

All of the basement windows should be large enough to crawl out of if there is a fire. That almost never happens, but knowing that the buyers are looking for lots of light helps you pick the winners when you're buying. Picking windows that you could fit through helps define "large" and "small."

Walkout basements are king. If there is a door to the outside, that's an exit. If the door opens onto level ground, instead of a stairway up to the backyard, that's a walk-out moneymaker. If the door opens onto the lawn and is a light bright patio door, or french door, or garden door, that's heaven. Buy that house.

Where's the furnace?

When you walk down the stairs and stub your toe on the furnace or water-heater, go back up the stairs and find another house.

You need a house where the services are tucked away in the corner and you have a wide open space to work your magic on.

$349,900 Builders home in Innisfil near lake. 1 year old 1900 sq ft on large lot. Click pic for more houses.

Design and Decor Rule

Get professional help! Pay a few hundred bucks to get a design professional to run up a floorplan and choose colours and trim details. You'll get it back tenfold.

Drywall the ceilings. Those cheesy office- building suspended ceilings will make your basement look like a cheesy office building. Plus they keep a fire in the basement.

Halogen potlights will sell your house. I don't know what it is about them, but they turn an average blah basement into a nightclub. Put in lots of them!

Go neutral. Brownish beige walls with white trim details have a modern euro look that appeals to buyers.

Don't do laminate flooring. It sounds good, but laminate is poor man's hardwood. Find a large-bubble burber carpet in a light tone.

Finally, the bling. Glass is king in a basement. That's why I'm big on big windows. When you have a need for a divider, don't build a wall. Build a wall out of white french-doors. It opens up the basement.

Design around keeping it open and airy, and the opposite of a mineshaft.

Or you could just hire me!

I can help you find the right house, with the right basement, ripe for your renovation project.

Tell me what your skill level is, and what your financial capability is, and we can work together to find you a house that you can fix and flip.

Get in touch now.

Get on the Fast-Track.

 

How to Sell a House for More

What's Your House Worth?

Selling a Country Cottage

Selling an Older House

Nine Costs of Selling Privately

Discount Commissions

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Bill Rinehart

 705 436-5111

Toll Free 1-877-436-5111

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