The impact of basements on house pricing

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BasementValuationThe impact of basements on house pricing – 

 People who are looking to sell their houses often worry whether the presence of a basement is a necessary prerequisite to getting a good price for their property. There is no straightforward answer to this question and it really depends upon a host of factors. The profile of the buyer, the type of basement it is, how well it is maintained, the reason behind the purchase of the house and a number of other factors could go into determining the significance of a basement in a deal like this.

The presence of a basement may be de rigueur in the case of large upscale neighborhoods and it may be difficult to get a buyer for a house without a basement in such an area. However in most neighborhoods about a third of the homes don’t have a basement, and such houses do get sold. The major determining factor is really how well the property is maintained both in the case of houses with basements or without them.

A basement actually may shave off thousands of dollars of the price of a house if it has any leakage issues and appears dank or musty. So for those house owners who do have basements, keeping them dry and clean is of utmost importance if one is planning on selling one’s property at a good price. For those who already have such problems with their basements calling upon a water proofing company should be the top priority to avoid any last minute panic at the time of negotiating a deal.

Having a well maintained basement therefore is something most prospective house seller ought to ensure. However before one undertakes the job it would do well to consider this fact-it is for example estimated that in Colorado Springs one would  on an average gain a 13 to 15%  on the resale value. So one really needs to do the math to find out if the gains of resale outweigh the investment.

On the flip side adding a basement to a two bedroom house and offering it up for sale as a three bedroom house might be a smart move because the latter has more demand. Other factors to consider are that in the absence of the requisite building permits or in the event of perfunctory repairs that are not up to mark there would be no addition of value.

Thus we see that the impact of a basement on house pricing can be both positive and negative and depends upon the locally relevant factors. In any case one needs to carefully weigh one’s options before deciding the right course of action.

Summary: People looking to sell houses often worry about whether a basement adds value to a house or detracts from it. There is in reality no straightforward answer to this with a host of factors determining whether the impact is positive or negative. This also varies from case to case.

Twitter Summary: A basement may add or detract value, when it comes to the resale of a house, depending upon a host of on-site factors.

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