Value of basement in NWDC
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Anonymous
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I know the answers are all over the place, but genuinely interested in people's responses on here.
1600 square foot row house in exceptional location off 14th street (quiet one-way street, regularly considered one of the best blocks around). 2 bedrooms, 2.5 bathrooms, plus den. Has been fantastically renovated throughout. Parking and small backyard. Likely worth around $1.3m. This is a neighborhood where space is at a major premium. Basement is currently unfinished 4.5 foot ceilings cellar. Would need full digout to get to 8 feet ceilings, and other very significant upgrades (moving systems, support beams, egress etc). So obviously a very major renovation expense. We have an excellent contractor who has done a few friends' basement digouts and with whom we trust fully. We constantly discuss whether we would ever want to do this major project. We further debate whether, if we did it, would we turn the basement into a legal rental versus just turn into more living space for us. In either case, we would get around 600 sf new finished space, add one extra bedroom down there, full bath, and then main living area. Legal rental would require new exterior stairs and a kitchenette; living space would require re-configuring the current interior stairs area. So accommodating both (i.e. design for our own use but add kitchen etc so we could easily rent) would probably add $10-$15k more costs than just picking one or the other. We have a 3 year old and regular overnight guests, so having a big playroom plus third official bedroom down there would be a plus. But we don't really need the extra space, and obviously it would be great to have rental income. I have a pretty good idea, but just wondering what kind of value people think either of these projects would add to our house. |
Anonymous
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I don't know the market and comps in this specific area so I won't get into the numbers (really you just need to check how much it would cost, how much a 3 bdr in your area is worth and how many basement rentals find a taker to get your answer on a financial point of view) but my gut feeling:
- people really want a 3rd bedroom or at least an easy possibility to add one (ie a basement not fully finished but close enough ). So in terms of resale it makes a huge difference ( not necessarily a good return on investment if you sale too soon, but at least will enable your house not to stay on the market long if priced right) - I am not sure a rental unit in a 1.3 M$ home is as attractive, I only own a 650k home but I already don't want to deal with a renter and have to share my space/yard/entrance. What I personally really care about is additional space for guests/family/nanny .. Either way, don't expect a high ROI if you plan on selling in the coming 3/4 years, that type of big investment need more time to pay itself |
Anonymous
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Our basement in dupont was recently renovated. Cost around 70k. We moved and modernized the mechanical. And removed the internal connecting stairs ( if you want to keep connecting stairs and have legal appartment just make sure the new doors you put in are fire rated etc). We now have a legal rental unit which will pay for the cost of renovating in 2 years.
We had no dig out. Add 30k for that. Banks will assess that the value of the house has increased but the square footage value is calculated less than the main house. I think it is worth it especially if you rent it out. If not renting then the house value at re sale becomes more of an issue. But I expect the next owners would live a rental unit potential. |
Anonymous
| You'll spend more than $100k for the dig out and finishing. Friends just spent $150k. |
Anonymous
| Op here. I'm aware of the exact cost to do this since I've received several quotes. My question is what the added value is so I can decide whether that cost is justified. |
Anonymous
Ask a realtor. Or check redfin and try to see how much houses with a rentable basement go for in your neighborhood. |
Anonymous
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Hi,
I am an architect and I do this type of work constantly. I'm guessing that turning an unused basement into a used one, will be worth it in the long run. How long have you owned the house for? How long are you planning to keep it? How much equity do you have? How much do you think a basement would rent for? Those are very hard questions (and fairly easy to answer) that I ask my clients before embarking on a design/construction project of your type. Give me a call and we can discuss further. Cheers, ileana schinder www.ileanaschinder.com ile@ileanaschinder.com 202.431.6760 |
Anonymous
A mortgage assessor will value a finished basement at fifty percent of the above grade value. Check this but this is what I recall from somewhere that there is a formula. But a buyer would rationalize differently. How much could you rent it for? That is the immediate ROI question. |
Anonymous
| OP here. It's probably rentable anywhere in the range of $1700 to $2000 a month, based on a quick check on craigslist. |
Anonymous
| I don't think you're going to get 1.3M for a 2brm row house at 14th st. |
Anonymous
| One a block over just got $1.4m - slightly higher end finishings. Similar model to ours on the same block, but lacking the 200 sf kitchen addition we did and hasn't been updated since early 2000s (and builders grade finishes) just sold for $1.1. So yeah, we're not worried about value at $1.3. Conservative if anything. |
Anonymous
Link pls? |
Anonymous
| We have a finished basement with a full bath in our house in Petworth. Our guests always passed up the upstairs guest room for their own space, basically taking over the basement. It's great - close the door and everyone gets their privacy (and no disruption from lousy sleeper kids). |
Anonymous
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With a 3 year old, the value of a basement playroom alone would be worth it to me.
Or you could rent it -- likely for $2,200/mo. give or take. |