The question of the basement raises much conversation among flippers. There are cases in which finishing a basement has proved to be a great financial loss to the homeowner at the time of sale, and cases in which the appraisal value showed an increase, with buyers happily willing to pay the increased price. Finishing your basement as local code allows can be done in different ways, and if you can manage without completely altering the structure — such as adding walls or creating extra rooms — it is possible to come out the winner. Keep in mind that a nice big recreation room is certainly a draw, but often will not be counted as living space in an appraisal, nor in the square footage when the home is listed. People also tend to have their own ideas of exactly what a rec room should be. If your property doesn’t already have a finished basement, chances are you won’t get a good ROI by finishing it. You can either leave it alone or do a minor fix by putting up walls, installing cheap but decently attractive carpet and inexpensive drop-down ceilings, and allowing the buyers to customize to their own tastes.
What about the bathroom?
A necessary component of any household is the toilet, and a home without one wouldn’t be much better than a particularly fancy tent. Renovating a bathroom could cost you only a little or a fortune, depending on your plans. Like upgrading kitchens, while a modern, efficient bathroom is expected, do not expect to increase the appraisal or sale value of the home substantially with a large investment. Replacing the floor covering or the wall color will not cost as much as a full-blown renovation that replaces and rearranges the toilet, the sink, the shower or bathtub, or that expands the room size.
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