Do basement apartments add value to your home?
Answer: it depends. This is an area where marketability and appraisal value vary A LOT.
Appraisal-wise, having a basement apartment will only add value and increase your home’s appraised price if other similar homes with basement apartments have sold in your area in the last 90 days.
Now, when it comes to marketability, people like basement apartments. Many millennials use them to offset their mortgage, so having one (in the right area) can REALLY increase the number of people who want to buy your home and how much they will pay- even if it doesn’t increase the appraisal price much.
The nature of the apartment matters, too. A legal basement apartment with separate utilities or a duplex will appeal to investors. A mother-in-law apartment (where there’s a kitchen, bath, and living space, but isn’t legally separated from the home itself) won’t have as great of an appeal, so the number of interested people will go down.
So, long story short? It depends on your home’s area and the type of basement apartment you have. Homes in a select area in Provo can GREATLY increase their value with a basement apartment- but if not in the exactly specified area, it won’t add the same value.
If you want to know if a basement apartment would add value to your home, contact me and I’ll run the numbers for you!
