The Associated Costs with Finishing a Basement

By Bill Gassett  RisMedia   January 24, 2023

If you have an unfinished basement in your home, you might have long had plans to make it into a usable space. Your basement could be used for many different purposes; entertaining, exercising, watching movies, or perhaps another bedroom.

Your basement could become a valuable addition to your home, but at what cost? We will look at how much is a finished basement to ensure you have the budget to improve your home.

What does it cost to finish a basement?

The average finished basement cost varies depending on many things. The current condition and what you want to do to the basement are prominent factors.

Perhaps you want to add a bathroom or turn the space into a media room, and these choices will affect the cost.

Homeowners’ average finished basement cost is between $22 and more than $60 per square foot. You should budget around $20,000 to more than $65,000 to finish your basement.

However, if you want to create a few specialty rooms, with quality flooring, in a large basement, your costs could be considerably higher than these averages.

Many specialty finished basement projects could cost much more.

So do you have the budget to complete your basement project? Let’s look at a breakdown of construction costs:

§  Framing; $7 to $16 per linear foot

§  Flooring; $1 to $20 per square foot

§  Waterproofing; $2 to $10 per square foot

§  Electrical; $500 to $3,000

§  Finishing; $5 to $8 per square foot

§  Labor; $25 to $100 per hour

Framing costs

With the increase in lumber prices, framing has become more expensive. You can expect to pay at least $7 per foot of timber to frame the basement. This cost includes nails and other materials, but the cost will increase if you plan to use steel instead or if there are load-bearing walls.

Flooring costs

The basement will probably need a subfloor if there isn’t one already. The subfloor can cost $2 to $7 and improve the insulation in the room.

The final cost of flooring depends on your choice of finishes and is where you can save if you need to. Vinyl flooring can cost just $1 per square foot, whereas you could pay $25 per square foot for a good wood floor.

Waterproofing expenses

Ensure the space is adequately waterproofed to prevent your newly finished basement from flooding. This can cost as much as $10 per square foot, depending on the size and what is required to keep the room dry.

It is worth the extra money to ensure you don’t have a mold or water problem.

Electrical costs

If your basement already has lights and outlets, this cost will be lower, but if you are starting from scratch, it can cost up to $3,000 on average. If you already have electricity in the basement, you might only need some additional outlets and lights, reducing your expenses.

Finishing expenses

With the framing complete, drywall, insulation, and paint need to be added to the bill. Drywall costs around $2 per square foot, and insulation is a similar expense. Paint can cost between $2 and $4 per square foot, but don’t forget it isn’t just the walls; the ceiling also needs to be finished.

Labor costs

The labor cost will likely be your most significant expense in the project. Depending on your location, a good basement contractor could cost between $25 and $100 per hour.

You should get a few quotes before deciding on the contractor to hire. The quotes might not set out their pricing in the same way, however, and you need to compare them fairly.

Some might include the labor in the total project cost, though others could charge hourly. Also, research the contractor, check customer feedback, and ask them questions before you decide.

Other basement options

Sump pump installation

Even when waterproofing the basement, water could still ruin your new space. A sump pump will ensure water doesn’t accumulate, though it could cost over $1,000. If you live in an area more susceptible to flooding, this could be an important extra cost.

Furniture expenses

If you don’t already have furniture for your new living space, you need to budget to furnish the room.

HVAC upgrades

You’ll want to make sure the basement area will be a nice place to be no matter what the weather is like outside. This might mean you need a new HVAC system if your current system cannot serve the new space.

Final thoughts

There are many options when finishing a basement. It is essential to plan carefully and take out all the necessary permits. Consult with a local REALTORⓇ if you want to know the value added to your property upon completion.

Exterior Home Improvements for Resale

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Selling your house can be an expensive endeavor. While most of those costs come later in the selling process, there are some expenses that come much earlier — before you even list your home. Between cleaning, staging, landscaping, painting and other tasks, expect to spend upwards of $10,000 to prepare your home for sale in our area.

On the high end, sellers in San Jose spend $6,580, and on the low end, sellers in Dallas-Fort Worth spend only $3,720. Sellers spend the money to complete these tasks in hopes of impressing buyers and receiving a strong offer as soon as possible.

While often forgotten or left at the end of your to-do list, your home’s exterior is the first thing buyers see, so it’s crucial to making a great first impression.

How important is curb appeal when selling a house?

Curb appeal is important because it can have a positive impact on your home’s resale value, and it’s something that most sellers address before listing.

Seventy-nine percent of sellers make at least one improvement before listing their home, according to the Zillow Group Consumer Housing Trends Report 2018. And landscaping ranks as the second most popular pre-listing upgrade. What does that mean for you as a seller? It means your competition is paying attention to curb appeal, so you should too.

Although the majority of buyers (79 percent) use online resources to shop for homes, your curb appeal really does make the first impression. Most agents use the exterior photo of your home as the first image on your online listing, and some local MLS systems actually require an exterior shot to come first.

What’s more, 89 percent of buyers take private tours in person, so if your home’s exterior looks neglected, you may never get them through the door to see the rest of the house.

Does curb appeal add value to your home?

Depending on the location, curb appeal can add value to your home. Your return on investment depends on the market itself, how much buyers value the improvements made and the total spend on the upgrade.

There are all kinds of things you can do to the exterior of your home, from simple landscaping to a whole new roof and new windows.

Exterior home upgrade ROI

According to Remodeling magazine’s 2018 Cost vs. Value Report, 7 of the 10 home improvements with the highest ROI are on the exterior. These projects recoup anywhere between 69.5 percent (for a wood window replacement) to 98.3 percent (for a garage door replacement) of your initial investment back at resale. Some of the other high-ROI external improvements include adding manufactured stone veneer, replacing siding and adding a wood deck.

Note that it’s extremely rare for your ROI to be 100 percent, but there are other benefits to completing exterior home upgrades before selling, outside of just financial return.

If you’re selling in a competitive market, making your home look its best can help you compete against other homes on the market. Upgrades such as a new roof or energy-efficient windows can attract buyers when you include them in your listing description. Alternatively, if you avoid maintenance-related upgrades, they’ll likely be found during a buyer’s inspection and cost you during negotiations.

Necessary exterior home upgrades

Curb appeal isn’t just about making your home look pretty. It’s also about ensuring that the major elements of the home’s structure visible from the street are in good working order.

Before tackling cosmetic upgrades, address any functional exterior shortcomings. For example, buyers can live with imperfect landscaping, but not a damaged roof with missing shingles. A damaged roof looks bad from the curb, plus it’s a red flag for buyers and their inspectors, signaling that the home hasn’t been taken care of by its owners.

The ROI numbers in this section come from Remodeling magazine’s 2018 Cost vs. Value Report.

Roof repair

If your roof needs repair, your options are to repair before listing, leave as-is and lower your listing price, or be prepared to offer a buyer credit as part of the negotiation process. According to the Zillow Group Report, 18 percent of sellers repair or replace their roof before listing for sale.

If you need a full roof replacement, it can be expensive. A midrange roofing replacement with asphalt shingles costs an average of $20,939 nationally, and it garners a 68.4 percent ROI at time of sale — or $14,322. That makes the unreturned cost for the seller $6,617.

Siding repair or replacement

Another obvious defect buyers may notice is damaged or neglected siding. A bit cheaper to replace than a roof, a midrange siding replacement has an average national cost of $15,072, with a 76.7 percent ROI ($11,560). The unreturned cost for the seller is $3,512.

New windows

Expect buyers to pay close attention to the windows and doors, especially in older homes. They may do it on the first tour, on a subsequent visit or during their inspection. If your home needs new windows and you decide to replace them before listing, it can be a huge selling point — especially if you opt for energy-efficient windows that will reduce heating and cooling costs for the future homeowner.

Both wood and vinyl windows provide better thermal resistance (meaning better energy efficiency) than aluminum, but the glass and glazing matter too. Insulated, low-emissivity coatings, spectrally selective coatings, and gas fillers all help improve energy efficiency. Note that awning or hopper windows (hinged at the top or bottom) and casement windows (hinged at the side) are less prone to leakage than sliding windows.

As far as cost, an upscale vinyl window replacement costs $15,955 on average, with a 74.3 percent ROI ($11,855). An upscale wood window replacement costs $19,391 on average, with a 69.5 percent ROI ($13,477). The unreturned costs for the seller are $4,100 (vinyl windows) or $5,914 (wood windows).

Window repair

Inspect your windows to see if any need to be repaired or replaced. You can also try these tips for improving the efficiency of your existing windows:

• Check for air leaks.
• Replace caulking or add weather stripping.
• Add storm windows.
• Add solar film.

New front door

A more affordable improvement, a new front door can give your home’s facade a whole new look. A midrange steel entry-door replacement costs an average of $1,471 and can get you an impressive 91.3 percent ROI ($1,343). The unreturned cost for the seller is just $128. Before you replace your front door, though, see if a new coat of paint on it will do the trick — more on that later.

New garage door

If standard repairs (like a chain/track repair or repainting) don’t bring your automatic garage door up to par, you might need to replace it. Luckily, an upscale garage door replacement is the highest-ROI project tracked by Remodeling magazine, with a cost of $3,470 and an average ROI of 98.3 percent ($3,411). The unreturned cost for the seller is just $59.

Cosmetic exterior home upgrades

Cosmetic updates are items that don’t necessarily need to be fixed, but they’re worth doing. Remember — your home’s exterior is the first thing buyers will see, and you only have one chance to make a good first impression.

Pressure wash

Pressure wash all hard surfaces near your home’s exterior, including sidewalks, curbs, pathways and driveways to remove dirt, grime and moss.

Paint the exterior

Whether your home is desperately in need of a new coat of paint or you just want to freshen up the look before listing, repainting your home’s exterior is a fairly common task, with 21 percent of sellers completing the project before listing.  

Neutral paint colors appeal to the broadest group of buyers, and the 2017 Zillow Paint Color Analysisfound that homes with greige (gray/beige) exteriors sold for $3,496 more than similar homes painted in a medium brown or with tan stucco.

Ultimately, the best exterior paint color depends on your home’s style, the exposure to sunlight and the exterior materials. Just avoid yellow — the 2018 Zillow Paint Color Analysis found that homes with yellow exteriors sold for $3,408 less than similar homes.

Spruce up landscaping

Another popular task on the pre-listing to-do list is landscaping the yard — 29 percent of sellers do some landscaping work before they sell. Trim overgrown trees, branches, bushes and ground cover, then plant colorful seasonal flowers and add fresh mulch.

Paint the front door

As long as it’s in good working order, you can simply paint the front door instead of replacing it, and it will cost less than $50. According to the 2018 Zillow Paint Color Analysis, homes with black or charcoal front doors sell for $6,271 more than expected, which is the highest sales premium of all the rooms and color combinations the study analyzed. Another great option is to add a pop of color to your home’s facade by painting the door red, yellow or another bold color.

Accessorize the exterior

Accessories and design touches are important on the outside of the home too. They make a home look polished, well cared for and updated. Consider these budget-friendly accessorizing tips that make a big impact:

• Add new house numbers in a classic bronze or black.
• Update the sconces and add sidewalk lighting (especially if you’re listing in winter).
• Replace the mailbox with a new one that matches the home’s style.
• Update the door hardware — smart home locks are popular with buyers.
• Replace your old welcome mat with something clean and simple (no funny phrases or cartoons).
• Add some front porch furniture that matches the style of the home.

The importance of outdoor space

Although most pre-listing exterior home improvements focus on the front of the house, don’t forget to spruce up the backyard or any outdoor space you have, too, even if it’s not big. According to the Zillow Group Report, 75 percent of buyers with kids want a private outdoor space, which isn’t surprising. But even among buyers without kids, 65 percent said they want a private outdoor space.

One of the biggest bang-for-your-buck renovations, again according to Remodeling magazine, is a midrange wood deck addition. It offers the fourth-highest ROI of any of the home improvements analyzed — for an average cost of $10,950, homeowners see a return of 82.8 percent.

Westport Condo and New Construction Update

The condominium market makes up about 8 per cent of the overall sales in Westport. Year to date there have been 26 condo sales with a median price of  $500,500.  Of those 26 properties, 6 have been in the Greens Farms area (Regent’s Park) with a median sales price of $802,500.  There are currently only 11 active condominium listings (2 in Greens Farms) with 4 properties under contract.  The total sales numbers have been remarkably consistent.  At this time in 2006, for example, there had also been exactly 26 sales through the end of September. 

Sales of newly constructed homes have been on the rise over the past year. There have been 58 sales of new homes thus far this year compared to 52 at this time last year, and there are an additional 11 new homes that are under contract.  The median price of these sales has been $ 2,050,000.  There are currently 60 new homes that are on the market at a median list price of $2,400,000.  They vary in price from $1,399,000 to $11, 975,000.

Town-wide sales of single family homes as of September were up over 10% to 332 compared to 287 at this time last year.  The median sales price of $1,325,000 is up from $1,295,000 at this time last year.

For Rob's Pick of the week, please email westportagent@hotmail.com and indicate town and price point.

The New York Connection

After reading how the number of homes sold in the Hamptons grew by 48% in 2014 according to Douglas Eliman statistics, I am somewhat surprised that we have not seen more of a boost of home sales to New Yorkers looking to take advantage of our area for its proximity
to the city by train or car,  as a weekend getaway and/or summer home.

The exact numbers are difficult to calculate without going through the entire tax roll. I contacted
both the Westport Town Clerk and the Town Tax Collector to see if they would have an idea of what these numbers are, and neither of these departments were able to help me.  My own guess, and it is only a guess based on personal experience, both as a Realtor and a town resident, is that the numbers  are somewhere in the 10-15% range in Westport, and lower in surrounding towns.

On a personal level, relatives of mine purchased a home in the beach area over 50 years ago that they
have used in exactly this fashion-spending summer months walking to the beach, taking sailing lessons at The Longshore Sailing School (One of the oldest in the country), playing an occasional round of golf or tennis, or signing up for summer events organized by Parks & Rec.

The largest share of our real estate taxes go to pay for schools, but we have so much more to offer a town resident.  In addition to the aforementioned amenities, there are the town marinas, Mahackeno summer camp, Compo Beach camp, Earthplace, Westport Playhouse, local hiking areas such as Devil's Den and Trout Brook, not to mention the simple pleasure entertaining friends with a backyard bar-b-que, or during this time of year, ice skating at Longshore or sledding at Winslow park.

There isn't much happening in the Hamptons in the winter months, which is why most of the restaurants and many of the stores are closed until the summer season.

Perhaps it's better that more people haven't realized what our area offers.  The highways are already
pretty busy, and it's nice to have a slowdown on the weekends. 

10 Projects to Complete Before Thanksgiving

The Farmer's almanac is indicating that we may be having a harsh winter. Although we are now basking in warm temps and winter still seems a long way off now is a perfect time to be thinking about things that need doing around the house, according to Better Homes and Garden magazine. Replace Windows — A professional can swap out your problem windows with more efficient models that will increase your level of comfort while at the same time decrease your heating bills. This type of project only makes sense if you are planning on spending several years in the house, or if you are preparing your home for sale. It will take several years before one can expect to recoup the costs of this type of upgrade.
  Exterior Paint — Fall offers plenty of days that are warm enough to work with exterior paint, and a touch-up can help prolong the life of your siding and trim. A fresh coat of paint or sealer on any surface that will be potentially covered with snow, such as wood floors or stairs, also is a wise idea. Roof Repair — The cold of winter can aggravate even a small roof leak. Any leaks in a home's roof should be fixed in advance of the first snowfall.
  Power Washing — Having your home's exterior and windows power washed won't just make your home look sharp, it also will prevent the growth of mold and mildew that feed on grime. 
Seal Gaps & Add Insulation — Consider a home energy audit that includes a review of your home's caulking and weather stripping. Energy auditors also will likely look inside your attic. If the insulation is at or below the level of the joists, you may be able to keep your home warmer by adding more. A depth of 10 to 14 inches is generally considered optimal.
  Tune Up Furnace — Maintenance from a trained professional can keep your furnace running effectively and efficiently and prevent potentially catastrophic damage to your home from burst or frozen pipes.
  Clean, Repair, and Protect Gutters — Inspect and clean your roof's drainage system. Better still; protect your gutters with mesh guards to keep leaves and other debris from causing blockages in the first place.
  Install a Programmable Thermostat — Programmable thermostats save money without sacrificing comfort by using less energy on heating and cooling while you're away from home, asleep, or at any other specific times you select.
Repair Driveways and Walks — Small cracks and gaps in a driveway or walkway can quickly expand during winter's freezing temperatures.
  Winterize Faucets and Sprinklers — Most exterior plumbing in areas with temperatures below freezing must be winterized to prevent freezing and bursting. Winterizing more complex plumbing, such as sprinkler systems or water features, is best left to a professional.
  Fireplace Repair — Proper inspection of a fireplace is vital to ensuring its safe operation, even if it is rarely used. An experienced chimney sweep will check wood fireplaces for flammable buildup (known as creosote) and chimney blockages like bird nests.