Are you considering remodeling your basement? Be prepared for typical costs which range from $11,428 to $30,163, although a luxury remodel may cost much more.

Cost to finish a basement varies a great deal, depending on what you intend to use the finished area for (a home office? family rec room? extra sleeping space for guests? separate rental unit?) and the quality of materials you use.

Remodeling an unfinished basement into comfortable living space is similar to building a new room, although it is more economical. You will have to consider your budget for installing each of its components including, for example:

Cost Breakdown

• Materials -- The essential materials needed will include insulation, drywall or paneling, doors, flooring, plumbing fixtures, electrical wiring, and egress window or door.
• Labor -- Count on using the services of several professionals such as a structural engineer, architect or interior designer, remodeling contractor, plumber, electrician, and others according to your plans. Make sure that a clear contract that spells out all costs, warranties, and completion deadlines is signed by both you and your remodeling contractor.
• Permit -- Depending on the exact nature of the work to be done, finishing your basement will require a building permit, and perhaps also an inspection.
• Estimate -- The initial estimate, which may include an onsite inspection, is often free.

Get the Most for Your Money

Consult with your local planning office regarding regulations related to your basement remodel. These include important specifications such as the minimum allowable ceiling height, size and placement of access doors or windows, and fire protection, to name a few.

Be sure your remodeling contractor waterproofs and insulates the basement as part of the remodeling project. Check the space for carbon monoxide from your furnace and radon gas as well.

Protect your investment. Buy a high-quality sump pump with battery option to deal with moisture problems.

The cost to finish a basement is well worthwhile for most homeowners. It will add to your quality of life as well as to your home's resale value. Expect to recoup about 78 percent on your investment when you sell.