Does finished Basement add value for cash out refinance

Question

Hello . Does anybody know...Does finished basement adds value when applying for cashout refi?

1) does it add to overall house sf?

2) if I add 2 bedrooms in finished basement do they count and add value?

My basement 1000 sf  is below grade with small windows. It is 7 feet high finished basement remodeled with wide plank wood flooring, drop ceiling and gypsum boards, heated withbaseboard heaters hydronic.

thanks for input.

Tomasz Poznanski · Answer

@AndrewPostell

thank you. That make sense. I will ask on another forum.

i am expecting to get good refi for this house. I finished basement also for purpuse of having more space, i rent this house short term rentals. If makes sensr iw ill add bedrooms which is just door few 2x4 and lock. But it all adds up.

Andrew Postell · Answer

@Tomasz Poznanski this answer is a very local, specific answer.  The true answer here is the question - "what do your comps show"?  Meaning, if there are no properties in your neighborhood and surrounding areas with a finished basement it would be extraordinarily difficult to estimate any value from your basement.  So, post this in the Pennsylvania forum and you will have more locals comment.  They will be far better than some yahoo in Texas saying anything.  Thanks!

Tomasz Poznanski · Answer

@Shaun Weekes thanks for the answer. Could you tell me what it means "if sf is permitted? " and will adding bedrooms count if I have small windows there?  Or if bedrooms with small windows do not count as bedrooms , do those rooms vount as " office" rooms ? I am trying to see what is better: keep one open space as lounge or add 2 rooms plus open space.

Shaun Weekes · Answer

If the Square footage is permitted, it will add additional value.  Because it's a basement the price per sq ft might be valued lower but it will count if permitted.  If it's not permitted, then the appraiser will not add value to an area that is unpermitted.

Also, if an unpermitted space isn't done in a "workmen like manner " the appraiser might call out the area's that are poorly put together if it's a safety or health issue.  Like exposed wires etc.

I hope this helps and have a good one.