Is Finishing Your Attic Worth It?

Is it time for you to finally finish your attic? Before you start, here is everything you need to know about the costs, benefits, and ROI related to finishing your attic. 

Converting your attic from an unused, dusty space into a usable room has many benefits. Not only will this increase your square footage, increase resale value, and offer you extra living space, but this project has many more advantages. 

According to the 2022 Remodeling Impact Report by the National Association of Realtors, 100% of homeowners have a greater desire to be home since finishing the attic. This report found that most homeowners finish their attics to add features, improve livability, and upgrade their homes. No matter the reason you want to tackle this project, you should first understand the costs and ROI.

Before anything, you should always consult with a professional to get an accurate quote on the project. Some homeowners may be able to finish their attics on their own, but the majority need the help of a contractor. It is recommended that you get multiple quotes to ensure you are getting the best deal. 

A finished attic can give you extra space to entertain, unwind, and enjoy your home. If you have the space, time, and money, a finished attic will be an excellent addition to your home. 

Keep reading to learn all about the costs, benefits, and ROI related to finishing your attic.

1. Cost Breakdown

There are several factors to take into account when creating a cost analysis of finishing an attic. This all depends on the size and type of the project, materials, builder, complexity, labor, and more. If you are starting from scratch, the cost will be much higher.

On average, an attic will cost between $30 and $60 per square foot, including labor and materials. If you are turning an unfinished attic into a livable space, the price can increase to up to $200 per square foot. In addition, if you want to include a bathroom, that will cost between $9,800 and $56,000. 

This is a closer look at the average cost based on the square footage according to HomeGuide: 

Here are the largest factors to consider when finishing your attic:

General Contractors

Similar to any other renovation, you will need a contractor who specializes in attic conversation. The general contractor fees make up between 10% and 20% of the total project price.

Some contractors charge per piece of the project, which adds profit and overhead. If the project is smaller, they may charge by the hour and add material costs. Again, getting quotes from multiple contractors is essential to ensure you are getting the best price. 

Electricity

Regardless of if you have a window or not, you'll most likely want electricity. Electricity is especially important if you expect it to be a livable space. On average, expect to pay between $720 and $3,200 for an electrician. On top of this, installing new wiring, outlets, and light fixtures will cost extra. 

HVAC Technician Costs

When adding a room, you'll need to extend your home's HVAC system. An HVAC technician will need to perform certain tasks:

• Ductwork: $1 to $3 per square foot
• Attic insulation: $2,500
• Mini-split installation $3,000

2. Planning Your Attic

The most important factor when finishing your attic is deciding what it is going to be. There aren't endless options when deciding what type of room to create. An attic space is typically small, with abnormal walls and ceiling heights. This can create problems when deciding what to do with the space. 

Most rooms must be 70 square feet minimum, two methods of escape (a door and window), HVAC, and at least half of the room must have a ceiling height of at least 7 feet. 

The most popular rooms to turn an attic into include small bedrooms, playrooms, offices, art studios, and reading nooks. All are great additions and can be personalized to fit your wants and needs. 

When designing the space, consider multi-functional furniture items. For example, a room with a sofa bed or futon can create a bedroom and reading area and save space for your kids to play. The room is likely small, meaning you won't need much furniture to fill the space. 

With the unique walls and ceilings, you have an opportunity to be creative with your designs. No matter your decorating abilities, the key is to create a space you enjoy being in. 

While deciding if a finished attic is worth it, contemplate how often you'll use the space once it is done. It is worth it if you need an office and can build one. Consider your lifestyle and needs as a family; this will allow you to make an informed decision.  

3. Benefits of Finishing Your Attic

Like any other renovation, the benefits should outweigh the cons in order to start the project. Finishing an attic can take months, depending on the initial space. Before, make sure you understand the advantages you'll gain. 

Increased Living Space

Increased living space is the most obvious benefit and most likely the main reason you are considering an attic. To be included in the square footage, an attic must meet the same criteria as other rooms in the home. This includes heating, flooring, ceiling, a traditional stairway, and a wall covering. 

An extra living space will benefit your day-to-day life and value the home when you want to sell. 

Increased Home Value

You can expect a finished attic to add 20% in increased value depending on several factors. Depending on the space size, the number of rooms, bathrooms, and more, the added value can increase. A local real estate agent can provide a more accurate estimate of the added value from your finished attic. 

Customizable

Again, there are endless possibilities of what to do with the open space. Once you have figured out how to use it, you can switch it up as you see fit. Consider your needs before buying large, expensive furniture like a bedframe or desk. 

4. Return on Investment

Return on Investment, or ROI, is a financial metric that measures the profitability of an investment. This is used to compare the gain or loss of an investment relative to its cost, typically expressed as a percentage. 

ROI is calculated by dividing the net profit (amount gained or lost) by the initial investment cost. This is a great way to decipher whether a renovation is worth the time and money it takes to build. 

For example, let's say it will cost $20,000, and the attic will add around $14,000 to the selling price. The ROI would be ($14,000 - $20,000) / $20,000 = 0.3, or 30% ROI. This means you have lost 30% of your investment in the finished attic. 

Remember that all renovations will have unexpected or hidden costs, so it is vital to keep an emergency fund. This way you are prepared for everything. A good rule is to save 10% to 20% on top of the estimated project cost in the event an unexpected expense occurs. 

If you are looking to get the highest ROI, a full bedroom and/or bathroom is the best option. A finished attic will already add a floor to your home without a significant amount of construction. 

The exact ROI will vary depending on the attic features, local market, and type of room. On average, you can expect an ROI of 56%, according to the National Association of Realtors. 

5. Is a Finished Attic Worth It?

If you are unsure if a finished attic is worth it, the most important factors to consider are the ROI and use of the space. If you need extra space, then an attic is a good option. 

Another factor is the length of time you plan to stay in your home. If you know you will move in the coming years, then a significant renovation may not be beneficial. However, the increased home value will be a huge advantage when it's time to sell. 

As your family expands, converting a finished attic will be more cost-effective and require less physical effort than other options. The additional space gives the kids more room to play, space for you to relax, and space for guests to stay. 

While deciding, ensure to consider the structural integrity, proper insulation and ventilation, and safe access to the space. Again, whether a finished attic is worth it is based on your financial flexibility and how much you'll use the room. 

Methodology

We used information and data from several different sources, as well as our own data, to determine everything you need to know about finishing your attic. Most of the data was sourced from the following sources:

• Angie's List
• The National Association of Realtors (NAR)
• HomeGuide

FAQ: Finishing Your Attic

Here are some commonly asked questions about the costs, benefits, and ROI related to finishing an attic. 

What is the 7 and 7 rule for attics?

The 7 and 7 rule for attics means that a finished attic must have at least seven feet of height from floor-to-ceiling, seven feet wide from wall to wall, and be at least 70 square feet. If the room is smaller than these dimensions, you may be unable to use it as a living space. 

How much does it cost to convert an attic into a living space?

According to Angie's List, the cost to finish an average-sized attic will range from $7,500 to $35,000. The price will depend heavily on the builder, space size, and design. 

How much value does an attic add?

The home value added by an attic will depend on how you use the space and size of your home. Typically, you can count on an attic to increase the value of your home by approximately 20%.

Does a finished attic count as square footage?

A finished attic must be accessible by a conventional stairway to be counted in the square footage. If a ladder or outside entrance are the only ways to access the attic then it is does not count as part of the floor area. 

What is the ROI on finishing an attic? 

On average, an attic renovation has a 56% ROI. This is one of the best ways to add resale value and add usable space to your home. 

Finishing Your Attic - The Bottom Line

Overall, finishing your attic has countless benefits. However, every home is different, and before starting the project, you should assess the potential returns on investment. 

Depending on the type of renovation and complexity of the project, an attic conversation can take 8 to 12 weeks. This large project also requires checking local codes for safety topics, including height, egress, and staircase requirements. 

Consider meeting with a real estate agent or appraiser in your area to determine the potential return on investment from this renovation. Before anything, ensure you understand how much value this will add and how much it will cost. 

As you search for your next home, Raleigh, NC, is one of the fastest growing areas in the country, with many stunning neighborhoods to choose from. Feel free to contact one of our helpful real estate specialists, as they are eager to help you find the perfect location. We know that investing can be overwhelming, but a real estate agent can walk you through the entire process.