How to Add Value by Finishing a Basement

Finish your basement completely to add value to your home. Don't upgrade only a portion of it. Add drywall, flooring, paint, plumbing and wiring to the entire space. To maximize the full value of a basement, you need to also use high-quality materials. Obtain proper permits from your municipality or county, and work with professionals if necessary.

Separate your basement into multiple rooms. Consider adding another full bathroom and bedroom or office in your basement. Not only will you add value to your home, but you'll satisfy your family's need for extra room. Maximize the space by including storage areas; add closets and shelving units.

Create a custom room. For example, install a home theater, wine cellar, game room or full bar. Though these rooms may not appeal to everyone, when selling your home, you might find the right buyer who seeks just this type of additional space. Many people enjoy custom rooms and may not have the finances or talent to design one, so finding a home with such a room in place could be a good selling point or unexpected bonus.

Insulate the walls and floors for energy efficiency. If your basement is below ground level, consider waterproofing the room to minimize moisture damage. Insulating and waterproofing can be costly additions for a prospective buyer, so a finished basement with these tasks already completely will likely add value to the home. Leaving the basement unfinished, with exposed concrete and no insulation, can lead to higher energy bills and possible mold and mildew problems.