NEW CONSTRUCTION BASEMENT OR NO BASEMENT?

[Kevin Alvarado]

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!

[Jennie Berger]

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