How Much Does it Cost to Finish a Basement?

How Much Does it Cost to Finish a Basement?

Are you thinking about finishing your basement? Continue reading to learn more about the costs associated with this project, which will help you plan accordingly.

Finishing a basement can significantly increase the usable square footage of your home. It provides space for extra bedrooms, a family room, a home office, a laundry room, or any other purpose you may have in mind. The costs of remodeling a basement can vary greatly depending on its size and layout.

While it's difficult to predict the exact expense of finishing a basement, the average cost—according to HomeAdvisor—is approximately $18,395. This estimate encompasses labor, construction permits, and materials. Depending on the extent of the work and your specific plans, expenses can range from as low as $2,800 to as high as $33,000.

Transforming this underutilized space can be a worthwhile investment in your home. The National Association of Realtors (NAR) Remodeling Impact Report indicates that homeowners can recover about 64% of basement finishing costs when selling their home, making it an appealing project for many.

Here is how much finishing a basement costs. 

1. Average Cost Per Square Foot

The average cost to finish a basement is around $15 per square foot, but prices can vary between $7 and $23 per square foot. The final cost will depend on your contractor's rates, the types and quality of materials you select, and your intended use for the space. Below is a breakdown of costs based on square footage to help you better understand the potential expenses.

Size (Square Feet)	Average Price
400	$6,000
500	$7,500
700	$10,500
800	$12,000
1,000	$15,000

When hiring general contractors to finish a basement, it's important to note that their fees can reach up to $34,000. Labor typically accounts for 10% to 25% of the total project cost, which encompasses all expenses. If you're considering working with a contractor, it is recommended that you get estimates from several contractors rather than just comparing costs.

2. Basement Finishing Cost Breakdown

A lot goes into finishing a basement. Understanding the cost of each task will help you better estimate the overall total price. Below is a breakdown of the finishing costs. 

Finishing Task	Average Cost
Waterproofing	$4,500
Insulation	$1,650
Drywall	$1,750
Electrical	$1,325
Lighting	$2,950
Flooring	$2,950
Permit	$1,160
Design	$7,250
Framing	$1,800

There are many things that go into finishing a basement, so understanding how much each task will cost is important, especially if you are trying to budget for the project. Your cost will vary depending on the size, quality, and type of project, so make sure you use these numbers as averages.  

3. Costs by Type of Finish

Your basement finishing cost depends on your starting point. Sometimes, you might not even have an unfinished basement to work with, so you will have to factor in starting from scratch, while some might have a semi-built space that needs remodeling. 

Planning and understanding what project you must take on will significantly impact the cost you should prepare for. Below are some costs to keep in mind when you are starting your basement project. 

Build an Unfinished Basement

Building an unfinished basement can cost $4,000 to $37,500. A complete basement build, with a foundation included, might run about $50 to $100 per square foot. 

Build a Half-Finished Basement

A half-finished basement costs $7 to $23 per square foot, but the total project cost will be lower than that of a fully finished basement since the amount of space needed for renovation is smaller. 

Cost to Remodel

Remodeling a finished basement costs an average of $20,000, with most projects ranging from $4,200 to $45,000. The final price will depend on the size, how many rooms, what you are adding, and anything else going into the basement will drive a higher cost. 

4. Build an Unfinished Basement

An unfinished basement foundation will cost about $10,000 to $175,000, which can be about $30-$100 per square foot for a fully finished basement build with the foundation included. 

Building an unfinished basement is a multi-step process that requires a lot of planning, especially if you are starting from scratch. It is important to understand what steps that need to be taken and when. When you are building, you should always focus on safety as well. 

If you do not have the foundation set already, building an unfinished basement can take a lot of time, depending on the size and scope of the project. So, make sure you consider all factors and costs before you start. 

5. DIY vs Hiring Contractor

DIYing your basement can save you money on your final cost, but it is quite the task. Even if you are a seasoned DIYer, you should still have help from professionals. Here are some average costs and time it will take to consider. 

Project	Average Cost	Average Time
Framing	$1,100	2 days
HVAC	$800	1 day
Plumbing/Electrical	$3,100	4 days
Windows	$1,100	1 day
Insulation	$1,100	1 day
Drywall/Painting	$1,500	5 days
Flooring/Trim	$1,100	4 days

A local basement finishing contractor usually hires and coordinates any electrical or plumbing you need. They charge around 20% of your total basement finishing cost for their services. If you are up for it, you can also find your own to watch over your work to save some cost.

Depending on your budget and skills, deciding whether to DIY or hire a contractor will significantly impact the total cost. 

6. How to Save Money

Finishing your basement can be a significant investment that requires money. The size and scope of the project will pretty much dictate the time it will take to complete the job. However, you can save money and reduce costs in some ways. 

• Leave the technical stuff to the pros
• Perform some finishing and trim work yourself
• Choose a budget early in the planning stage and stick with it
• Do not make impulse purchases that add up quickly
• Balance inexpensive materials with items that you want to showcase
• Opt to place bathrooms or other water-dependent rooms within easy reach of your home's existing plumbing

There are many ways to complete this large project at an affordable price. You can choose to do it yourself (DIY) by following specific methods that keep you within your budget. Making this project achievable and cost-effective is something that many homeowners appreciate.

7. Factors to Consider

Size

Since most basement finishing jobs are figured per square foot, the size of your basement can greatly influence the overall cost of the project. A basement between 300 and 700 square feet is considered small, while anything over 2,000 is oversized. 

Type

The kind of basement you have will also affect your cost. Full basements extend the entire length of your home's main level, while a partial basement does not extend across the whole blueprint. Partial basements are smaller and cheaper. 

There are also walkout basements, which are full-size spaces with private entrances, often windows, and an additional door. These are typically placed against a hill and will have different costs than others. 

Labor

Labor costs for finishing a basement can range from $25 to $100 per hour. As the project involves the work of several specialists, you may also need to hire a general contractor to oversee it. To estimate the labor cost, consider that it will typically account for at least 20% of the overall project cost.

Permits

Remodeling or even just finishing a basement may require a building permit, especially if extensive electrical and plumbing work is involved. The average cost for permits ranges from $1,200 to $2,000.

Materials

Materials will make up the bulk of the basement cost, about 70%. The quality and durability of almost every material used vary; the range can be $5-$21 per square foot.

Furnishings

Furnishings fall into the remodeling category, and they can range in size depending on how you intend to use your basement, from $45,000 for a full-fledged kitchen to about $450 for a ping-pong table. Just keep in mind to keep room in your budget to furnish and decorate to upgrade your new space. 

Methodology

We created this guide on the cost of finishing a basement using information from various sources and our own data.  

• National Association of Realtors
• HomeAdvisor
• Bankrate

We used the following sources to gather most of our information on basement finish cost.

FAQS

How can I finish a basement myself under $10,000?

If you want to keep the cost of finishing your basement under $10,000, you should handle the tasks yourself, like hanging and painting drywall. Using lower-quality materials can also help you save money on the project. However, work with a contractor to figure out where to cut costs. 

How much value does a finished basement add?

The average basement finishing project can yield up to a 70% return on investment. Home buyers typically prefer a house with a finished basement and may even increase their offer for recently remodeled ones, adding value by creating more living space. 

What is the most expensive part of finishing a basement?

The most expensive part is typically the labor costs associated with plumbing and electrical installations. Hiring a licensed professional to ensure that these systems are safe and conform to building codes can be costly but vital to the project. 

How long does basement finishing take?

Finishing a basement can take 3-8 weeks, and it is not uncommon for the project to take longer. The time will vary depending on the speed and availability of the contractor you hire. 

How Much Does it Cost to Finish a Basement? - The Bottom Line

Finishing your basement may seem like a significant expense, but the cost ultimately depends on your specific needs and goals. Investing in a finished basement can increase your home's overall value and potentially reduce energy bills, making it worthwhile if you have the budget for it.

Once you determine what you want from your basement, you can establish how much you can afford to spend. Creating a budget is essential. You might be able to tackle the work for simple projects that don't require permits. However, in some cases, hiring a professional will be necessary. Proper planning before you begin is crucial, as it can help minimize both costs and time.

Homebuyers often prioritize value-added features in a home, and finishing your basement is an excellent way to increase that value. An additional basement space is appealing to many homebuyers, regardless of whether it is finished.

If you are considering moving or selling, contact us or visit our website. Our team at Raleigh Realty is here to help you with any home buying or selling needs.