Many people don’t realize that purchasing a home with an unfinished basement could have a huge impact on their finances for many years to come. Here is a quick look at just a few of the reasons why you might want to take a closer look at homes that have unfinished basements.
1. More Living Space Once Completed
After you move in and things have settled, you can then begin the process of renovating the basement. Starting with a blank slate is going to make that type of project much more affordable and less time-consuming. You will be able to turn your basement into a private home theater, a game room for the children, or an extra bedroom. Those who live with aging parents sometimes turn unfinished basements into mother-in-law suites as well.
2. Increased Equity
Once the basement is complete and the total living space in your home has gone up, the value of your home might increase by quite a bit. That extra equity should have a huge impact on your credit score, and that is going to be very beneficial if you plan on applying for any new loans. If you are curious about the change in value after the basement is complete, then you should contact a professional such as Vikie Gallimore: RE/MAX Central Realty. An experienced realtor can help you reassess the value of your home when it comes time to put it on the market and get a realistic view of how much house you can afford and where the market is going.
One of the great things that can come with buying the unfinished basement is that you may be able to qualify to refinance your home once your family outgrows your space. This would let you buy now and prepare for later. Many people take the savings from the rates that they locked when they bought the home and use their equity to be able to pay for the home remodel. There are many moving parts, but you can usually assume that the value of the home I going to increase making your decision to buy today a financially sound one. It’s easier to expand a basement remodel than to buy a second home.
3. Potential for Supplemental Income
Another option that you might want to consider is turning your unfinished basement into an attached rental unit. As long as you come up with a solid plan and stay within a strict budget, the renovations could pay for themselves within a matter of months. That attached apartment will be especially lucrative if it has a separate entrance that your tenants can use.
This can depend on the local laws surrounding you. Many people choose to keep a single family of renters or to rent with short term rentals. This would give you the ability to keep the mother in law apartment open for guests and family on dates that are not booked.
4. More Affordable Initially
As soon as a basement has been finished, it could drastically alter the value of a home, and that is one of the reasons why savvy buyers often search for homes that have unfinished basements. Those properties tend to be much more affordable, and you will be able to customize the space as soon as you are handed the keys. Buying a home with unfinished living space could end up saving you tens of thousands of dollars.
Before you purchase a home with an unfinished basement, you should hire an inspector who can carefully examine the foundation and walls. While most basements are going to be perfectly safe, your inspector will need to look for issues such as slab leaks, foundation cracks, and mold.
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