A basement remodel can be an intimidating project, to be sure. These spaces tend to be dark and wet, and are often overflowing with unwanted items. But remodeling your basement can do wonders for boosting your home’s value and your quality of life. You can turn it into a rec room to watch your favorite shows or play video games. You can also use the space as an extra room for guests. The sky’s the limit when you take the plunge!


If you’re not sure where to start, don’t worry. Our guide below talks you through the different basement remodel steps to help you prepare and plan for your project. 

What is a basement remodel?

A basement remodel involves renovating or upgrading the basement of a house. While structural modifications are occasionally needed, the most common changes include adding utilities (like plumbing and electrics) and enhancing the usability of the space by adding flooring, windows, drop ceilings, insulation, and damp proofing. The goal is to transform this often underused area into a more livable and useful part of the home.

Why do a basement remodeling?

Remodeling a basement is a tall endeavor, but one worth taking. The average basement remodeling job costs around $22,850 and boasts an impressive 70% buyback!


What makes the basement remodel such a popular project, anyway? It could have something to do with the sheer flexibility it offers your home life. Many homeowners love having the extra space to finish their art projects or entertain guests.


The following are great reasons to start thinking about basement remodels:

  • Entertainment centers: Turn your basement into a cozy home theater or game room.

  • Spare room for guests: Add spare beds and soft furnishings to host visitors with comfort and privacy.

  • Storage space: A basement remodel is the perfect opportunity to create storage for organizing and decluttering your home.

  • Workspace: Alternatively, use the space as a quiet home office or craft space.

  • Art studio: It could also become a creative environment for artists to work on their projects.

An example of a remodeled basement

Basement remodel steps explained

Preparing for a basement remodel involves a lot of steps, including cleaning the place up and assessing it for potential structural damage. Unlike the living room or the bathroom, you have a little extra work to do before you’re ready to decorate.

1. Test your walls for moisture

Basements are well-known for gathering moisture due to the low temperature, lack of light, and proximity to pipes. That’s why the first basement remodel step is to check for mold —- even if your basement doesn’t smell musty. All types of mold are health hazards and can affect your physical health, especially if you’re prone to asthma or have mold allergies.


You can test for moisture levels by:

  • Creating a square on the wall with several strips of duct tape

  • Waiting a full twenty-four hours

  • Checking back to see if the tape has become damp or rolled off

If the tape is dry, you don’t need to replace anything. If the tape has become damp or wet, you’ll need to replace your walls. 

2. Snip out studs

Do you want to divide up your basement with extra walls? Stud walls are unique in that they don’t need to hold up any weight. Think of them more like room dividers than actual walls. Unlike classic load-bearing walls that need studs every sixteen inches, room dividers need studs every twenty-four inches.


Stud walls also allow you to control your heating and cooling better. This phenomenon is known as thermal bridging and can save you a few dozen dollars per year during the extreme seasons. Though adding stud walls will incur higher costs (account for an extra $1,000 to $1,500) it’s well worth the effort for some.

3. Add drop ceilings

If you’re planning a basement remodel, we recommend adding drop ceilings for their easy installation and low cost. Convenient and inexpensive, drop ceilings provide you or the carpenter access to wiring without the fuss, and cost between $9 to $13 per square foot for materials and installation.

4. Add affordable vinyl tile

You may be thinking of adding carpet to your basement to encourage a cozy atmosphere. We recommend vinyl tile instead, since basements are extremely prone to moisture and mold build up.


Vinyl flooring has never looked so good. Depending on your tastes, you can choose options that mimic ceramic, hardwood, or marble. This material is extremely easy to clean, repels moisture, and only between $2 and $9 per square foot. Consider adding a few rugs to complete the look (and check them frequently for moisture or dirt).

Basement remodel step 4 involves adding vinyl flooring

5. Add emergency egress windows

Listen up, because this is one of the most important basement remodel steps! Basements can be a risky place to stay due to their location and proximity to piping. You need to install emergency egress windows in accordance with your state’s safety standards.


You don’t need to break the bank to install a window, either. Consider prefabricated egress windows, which run between $500 to $2,000. This price doesn’t include the installation, which we recommend sending to a professional. 

6. Add a bathroom near your plumbing

Do you also want to improve your property value? Adding a bathroom to your basement remodel plans will do just that thanks to its utility.


The key to installing a functional bathroom with a high ROI is to make sure it’s very close to your basement’s plumbing. Installing it further away will have you spending extra on piping, which defeats the purpose. Expect to spend up to $15,000 for a small bathroom.

7. Get a quality site plan

You won’t travel to your bucket list items without a map, right? Your basement remodeling works the same way. Don’t start your project without getting a quality site plan.


Site plans provide you with an easy-to-follow layout that maps out your home with the following details:

  • Dimensions

  • GIS information

  • County parcel maps

  • Surveys

  • Sketches

At MySitePlan, we create non-certified site plans in twenty-four hours, Monday through Friday. Contact us today for a custom quote and start working through those important basement remodel steps.

Basement remodel FAQs

How much is a basement remodel?

The average basement remodeling job costs around $22,850, but prices range from $4,700 and $41,000 depending on the scope of your project, the materials used, and the labor needed. 

How to remodel a basement?

Remodeling your basement is a fantastic option for boosting your home’s value and creating a more comfortable place to live. We recommend the following steps:

  • Test walls for excess moisture

  • Remove some studs

  • Add drop ceilings

  • Use vinyl tile instead of carpet

  • Install prefabricated emergency egress windows

  • Consider putting in a small bathroom

  • Get a quality site plan

How much value does a basement remodel add?

On average, finishing a basement should provide a 70% to 75% return on your investment  So, if your basement remodel costs $20,000, it would theoretically increase your house value by $14,000.

How long does a basement remodel take?

The duration of a basement remodel can vary widely depending on the scope of the project. Minor updates might take a few weeks, while extensive remodels could take several months.

Do I need a permit to remodel my basement?

Generally, you'll need building permits for structural changes, electrical permits for wiring, and plumbing permits if you're adding or modifying water lines or drains. Always check with your local building authority for specific requirements.

Can basement remodeling increase my property taxes?

Yes, significant improvements that increase your home's value, like basement remodeling, can lead to an increase in property taxes. This is because your property's assessed value is likely to go up.

What are the best practices for ensuring proper ventilation in a remodeled basement?

To ensure proper ventilation, consider installing air vents or an HVAC system. Using dehumidifiers and maintaining clear air pathways can also help keep the air fresh and prevent moisture buildup.

How can I make my basement more energy-efficient?

Insulating the walls, ceiling, and floors can significantly increase energy efficiency. Choosing energy-efficient lighting and appliances also helps reduce energy consumption.

What should I consider when choosing lighting for my basement?

Opt for a combination of general, task, and accent lighting to brighten the space effectively. Recessed lighting is popular for basements due to its clean appearance and ability to distribute light evenly.

Are there specific flooring options that are better suited for basements?

This post was originally published on 06-21-2022. It was updated on 07-26-2024 to reflect the latest information.

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