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Basement Finishing Cost & Return

Year Median
Home Value
1940 $2,938
1950 $7,354
1960 $11,900
1970 $17,000
1980 $47,200
1990 $79,100
2000 $119,600
10-Year Period Median Home
Value Increase
1940-1950 150.31%
1950-1960 61.82%
1960-1970 42.86%
1970-1980 177.65%
1980-1990 67.58%
1990-2000 51.20%
20-year period Median Home
Value Increase
1940-1960 305.04%
1950-1970 131.17%
1960-1980 296.64%
1970-1990 365.29%
1980-2000 153.39%
Average
20-year increase
251.69%
Source: US Census Bureau

If you're planning on staying in your home for a long time, there's no better way to safely and usefully invest your money like a basement finishing. Remodeling the basement is the best way to increase your existing living space in a poor housing market with an investment that will significantly pay back for itself over a relatively short period of time.

Consider this: despite the occasional dips in the market, the value of a home after 20 years has invariably been more than 231% (and as much as 396%) of its previous value. On the chart to the left, the trend of the past 60 years has been broken down based on data from the US Census Bureau. Because of this historical increase in home value, nearly ANY home improvement that increases the value of your home will pay back for itself in the long run.

With a basement finishing, however, you have a special opportunity. Even with the poor housing market in 2007, Remodeling Online reports an immediate home value increase of 60.8%-96.8% of the price of the installation. Therefore, in Denver Colorado, where Remodeling Online shows a return of 83.8% of the job price, a $35,000 job will immediately increase the value of your home by $29,330!

If you increase the value of your home by $29,330, and the housing market follows the same trend that it's followed since 1940, then you can count on your investment to pay back by about $73,821 over 20 years. Subtract the original cost of the job ($35,000), and you still have a profit of $38,821! Your home improvement has earned you more than you'd paid in the first place!

In the meantime, you'll be saving a lot of money in your home. The US Department of Energy reports that, depending on the area, you can save between $250 and $400 per year with energy saved through basement wall insulation. This means that even if energy never becomes more expensive, you'll save $5,000-$8,000 in 20 years with your basement wall insulation alone.

When all is said and done, a basement finishing can earn you an estimated 20-year profit of $26,856 - $57,169. And while you're waiting for your investment to mature, you can enjoy the most cost-efficient way to increase the usable living space in your home. How else can you invest your money so reliably and practically?

Total Basement Finishing would like to help you make the most out of your home improvement investment. Our basement finishing experts can help you design a basement finishing plan that's perfect for your home and lifestyle with long-lasting products that will look as good in 20 years as they do today. We understand that you want to invest in your home, and that this means finding products that will not grow mold, rot, and decay. Your basement finishing should increase in value, not worsen until you have to pay to remove and replace it. If you would like to speak with a Total Basement Finishing System Design Specialist, call or contact us today!

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