NEW CONSTRUCTION BASEMENT OR NO BASEMENT?
I am building a new construction but need to figure out the little things for the house such as a basement, 4 rooms upstairs coming up to 3000 sq ft, or 3 rooms coming down to 2500 sq ft.
This construction is in the Belmont Cragin area, Chicago, IL. The lot is 30" wide.
My question is if it would be a good investment to finish the basement or leave it unfinished. We are doing a single-family house. Basement, first floor, and second floor. Should we choose to do 3 or 4 rooms on the top floor?
I would appreciate any advice on anything. Thank you!
Hi Kevin:
As an investor, GC, and developer, I believe design choices should ultimately boil down to 1 key thing: COMPS.
1. What are the comps for new construction SFH of similar size in your area selling for?
2. What are their bedroom / basement situations?
3. Follow those comps.
Generally speaking--as long as comps justify it--a finished basement is NEVER a bad idea. In fact, it's one of the most desired features by Chicago buyers / homeowners. That said, if your comps don't require it, and your ARVs aren't there to justify the additional cost of finishing a basement, leave it unfinished.
We have built SFHs on the North side of the city, and while our demographic and price point is different than yours, for a 3000 SF house we would generally do the following:
-4 beds (3 on the 2nd floor + 1 in the basement)
-3.5 baths (1 ensuite for the primary, 1 shared for the other 2 bedrooms on 2nd floor, 1 full bath in the basement, powder room on main)
-Completely finished basement with rec space, storage, laundry, wet bar
*I don't believe you'll be able to fit 4 decent sized bedrooms all on the 2nd floor with 3000 SF. But, then again, define 'decent,' and keep in mind your demographic.
Again, check your comps. Hope this is helpful!
Jennie Berger, Property People
Hey @Kevin Alvarado - Congrats on doing a new construction project! I'll be honest it's a TON of work, but I am sure you got it covered.
What's the end game with the new construction? Are you selling, renting, or building for yourself?
@Jennie Berger provided the best, which is simple, but sometimes hard to follow. Don't try to invent the wheel....see what sold quickly and for a high amount - that is a good comp for you.
Happy to connect and talk about chicago new construction if you want someone to bounce ideas off of.
You should try to maximize the square footage while also keeping your costs down. The foundation with a basement is added square footage, even if you decide not to finish the basement it still adds a lot of value for the next owner.
You should be able to see the value added with a basement quickly with one bid from your foundation company vs a bid on a slab with frost walls.
Go with layouts that are in high demand and try to find the highest and best use that works for the property as well as your budget.
Good luck with the build!