Is it OK to have a bedroom in the basement?

In short, yes. You can use your basement as a bedroom, but you have to ensure that it complies with the proper building codes. Basement living spaces require an emergency exit and rescue openings, also known as an egress code.

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It may be dark and dingy now, but that space in your basement that you set up as a bedroom can add value to your home with a few touches. And, with a bit of creativity, you may even be able to list your home as having 3 bedrooms instead of 2. Learn a few tricks to turn that empty space into a better basement bedroom that you can actually list as a feature when listing your home.

Is it worth it to create a better basement bedroom?

Usable space is a top feature for buyers, and many will pay more for it. That empty and forgotten concrete space you may currently use to store things can be upgraded and finished into a guest room or extended living area for elderly parents or college kids.

Agents Compete, You Win.

If you’re lucky enough to have a separate entrance to the space, it can even be converted into a rental or Airbnb. Some homeowners are even adding separate exits to take in private tenants for a bit of passive income.

How much value will a basement bedroom add?

While most listing agents won’t include the square footage below grade (below ground level) to your home’s total area, it really depends on what state you live in. Your best bet is to contact your local county assessor’s office and ask whether appraisers can include the square footage of your basement bedroom in your total living area. If you have an entrance/exit in your basement that you can access from ground level, you have a better chance of having the basement square footage included in the total assessed square footage of your home. This is because of fire prevention restrictions. The good news is that you may be able to add an egress window instead of a door to satisfy this requirement for considerable savings. Other factors to consider are that appraisals that follow guidelines from mortgage companies, such as government-sponsored financing platforms like Sallie Mae, may not factor in the square footage of a below-ground living space into the overall gross living area space. However, unlike commercial properties, home values aren’t directly tied to overall square footage. So, whether the bedroom basement is factored into overall square footage or not, it still adds value to your home in the view of buyers who desire it.

Does a basement bedroom add the same value as a conventional bedroom?

Because basement bedrooms are not accounted for in the gross living area space, they are valued separately as an additional line item on an appraisal. As such, you can expect the value of a basement bedroom to be in the range of 50%-70% of the value of a traditional above ground bedroom. The upside is that this also extends to your property taxes, especially in states where the overall square footage is considered a primary factor in your home’s assessed value for tax purposes. Adding a basement bedroom won’t increase your property taxes as much as remodeling to add an above-ground bedroom.

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The value of a basement bedroom depends upon both structure and aesthetics — such as whether there is a walk out (exit door), how the space flows with the rest of the house, and the quality of the remodel and finishes. So, the design and finishes that you add to your basement bedroom make a difference in its value.

Can a basement bedroom be listed as a real bedroom?

A basement bedroom can technically count as a real bedroom if it meets specific standards. You’ll need to find out what the code and permit requirements are in your local jurisdiction, whether you decide to DIY or hire a contractor, to make sure you remodel legally. Generally, to be counted as a real bedroom, your basement bedroom needs to be built to code and have some features.

7-foot tall ceilings

70 square feet

Heating and ventilation

Windows that are up to code in your area

Legal stairways

Finished features

Building codes vary from region to region. So that is the first place you’ll want to start to confirm the structural features required to count your basement bedroom as a real bedroom. Once you’ve confirmed that all structural components are in line with building codes, you can focus on the finished features that will increase the value of your basement bedroom.

Agents Compete, You Win.

5 ways to add value to your basement bedroom

Maximizing your investment return by adding finished features doesn’t have to be complex and expensive. In fact, sticking to simple designs and materials is enough to create a lovely functional basement bedroom that increases your home’s value.

1. Use a simple floor plan

Don’t waste money on overly built-in structures such as dividing walls and built-in cabinets. An open floor plan tends to let in more light and creates a feeling of a bigger space. More importantly, a simple open floor plan also lets the buyer see more options for their own ideas if they want to repurpose the room, which adds value to your home sale.

2. Use moisture and mildew resistant materials

Basements can be damp and attract moisture. Using moisture-resistant materials can be a big selling point for buyers who won’t have to worry about mold and mildew down the road. After moisture sealing the walls and adding foam board sheets to insulate, consider using wall panels instead of drywall. Not only are they easier to install, but they are more durable, moisture-resistant, and provide extra insulation.

3. Install a drop ceiling

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A drop ceiling consists of removable panels that allow you to cover ducts and plumbing for aesthetics and easily access these areas if you need to for upgrades or repairs. Drop ceiling tiles come in a wide variety of colors, textures, and styles and are easily replaceable or upgradable for style changes.

4. Creatively hide pipes, ducts, and HVAC or water heaters

While a drop ceiling can cover anything above, you’ll want to try to conceal any plumbing pipes, ducts, your water heater or HVAC unit to truly give your basement bedroom a finished appearance. Depending on your layout, you can get creative here and explore your options. Some DIYers may choose to fully enclose machinery with framing that they then turn into a feature, such as a bench or other design element. But if you’re after a less permanent and time-intensive fix, it’s worth it to browse a bit through a site like IKEA for curtain or stylish room partition ideas.

5. Keep it light and bright

In a basement bedroom, you really want to maximize lighting as much as possible. A neutral and lighter color spread will brighten the room and reflect natural and artificial light. Consider adding LED track lighting designs to bring lighting to the room’s darker corners and open up the space. LED strips come in an infinite array of styles and designs and are very versatile so that you can direct light where you want it to go. Think simple, neat, and versatile with your basement bedroom for the most value Whether you are just starting out designing your basement bedroom, or you’ve already created it and want to give it a facelift before listing your home, remember to keep the future buyer in mind. Spaces that are open, neat, and adaptable allow buyers to envision what they can do with the area, making it easier for them to see themselves living in your house. Keep colors and styles neutral and spaces open to appeal to most buyers interested in your home. For additional tips and tricks for increasing your home value, you can’t beat advice from an experienced realtor. Compare agents in your local area today to find an agent that will get you the most value for your property. Our network agents have been carefully vetted and often offer competitive, lower than average commission rates to UpNest, which is owned by parent company Realtor.com, customers. There is no obligation to sign up with one of our network Realtors, but when you can potentially save thousands on commission – why wouldn’t you? If you’re ready to get started, just enter your zipcode below!

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