Basement Dig Out in Philly worth it?

[Brittany Puzar]

Hi! Currently getting quotes from contractors to expand and finish the basement in my south philly row house (east passyunk). We have a portion of the basement unfinished with 6' clearance and a portion that is crawl space. Exploring options to get as much of it as possible to 7' ish ceilings. Will be finished to use as a den/playspace/storage/laundry. It will not be used as a bedroom. 

How should I think about the resale value gained from the square footage being finished? Just poking around zillow and redfin it seems like the neighborhood gets between 250-300$/sq ft (can any Philly agents chime in on this?) Would any finished space in the basement add this much value?  E.g. Finishing 300 sq ft adds 75-90k? This will be a major expense, so I want to make sure its worth it compared to other options to spend my money. 

Also, for anyone based in Philly, I've heard from one contractor that quotes of 20-30k were common a few years ago, but due to recent rule changes, contractors need to maintain excavation licenses/ insurances to do any dig out work and that cost is getting passed to customers. He's saying the cost is more like 40-50k now. Will be talking to many contractors to validate of course, but curious if anyone here knows anything about this or has done basement dig outs in the last 6-12 months? 

Thanks in advance for any advice or guidance! 

[Alan Asriants]

The main issue with many Philly homes is the age these properties were built

This give you 2 main concerns:

1. Basement foundation is made up of stone and mortar. This type of foundation is extremely porous and lets in a lot of water. These basements were never meant to be finished, in fact they were meant to trap moisture. So if you finish a basement in an older home and you don't go through proper steps of waterproofing, you will start to accumulate moisture, have water in basement after every storm, mold etc.

2. Narrowness. Many philly homes are skinny and finishing a basement sounds good in theory but that tight space is still tight.

Finishing the basement won't get you 75-90k. The most I think it can get you is 30, and this would need to be a nice job and good ceiling height. 

[Jenna Hall]

Hi Brittany,

We are in West Passyunk weighing the same thing. Did you end up moving forward with the project? Or finding a contractor you like?

Thanks,

Jenna

[Dan Powers]

Realized I'm late to the party here so maybe I can help @Jenna Hall in her decision. Your definitely not going to see the return your looking for in a 75-90k value add. Similar to what @Alan Asriants said you can maybe get 30-40k for a finished basement. Now the minimum standards your basement has to hit for it to be able to count as assessed sqft not estimated is a height of 7 ft, a point of egress (bilco doors) and a window usually in the rear, It's one of those things where if your going to go through the process of digging out a basement you might as well go for it and dig it deeper then 7 and closer to 8 ft so you actually stand out compared to the competition.

Now the other side of this coin which I would suggest is if you're willing to spend 40-50k on a basement dig, consider adding a 3rd story addition if your a 2 story (think master suite, walk in closet, master bath) or an addition off the back and add a roof deck if your a 3 story (either master suite or just additional bedroom). It's might run you slightly more but you get a hell of a lot more value out of it. Things to consider, if you are a 2 story, you can only build a flush 3rd story addition if you are an end row or next to an existing flush 3rd story, otherwise you will have to do a setback 3rd story addition.

Hope this helps!

[Alan Asriants]

Quote from @Dan Powers:

Realized I'm late to the party here so maybe I can help @Jenna Hall in her decision. Your definitely not going to see the return your looking for in a 75-90k value add. Similar to what @Alan Asriants said you can maybe get 30-40k for a finished basement. Now the minimum standards your basement has to hit for it to be able to count as assessed sqft not estimated is a height of 7 ft, a point of egress (bilco doors) and a window usually in the rear, It's one of those things where if your going to go through the process of digging out a basement you might as well go for it and dig it deeper then 7 and closer to 8 ft so you actually stand out compared to the competition.

Now the other side of this coin which I would suggest is if you're willing to spend 40-50k on a basement dig, consider adding a 3rd story addition if your a 2 story (think master suite, walk in closet, master bath) or an addition off the back and add a roof deck if your a 3 story (either master suite or just additional bedroom). It's might run you slightly more but you get a hell of a lot more value out of it. Things to consider, if you are a 2 story, you can only build a flush 3rd story addition if you are an end row or next to an existing flush 3rd story, otherwise you will have to do a setback 3rd story addition.

Hope this helps!

 agreed here, I'd rather build up than build down in an older home

[Jose Jacob]

Quote from @Dan Powers:

Realized I'm late to the party here so maybe I can help @Jenna Hall in her decision. Your definitely not going to see the return your looking for in a 75-90k value add. Similar to what @Alan Asriants said you can maybe get 30-40k for a finished basement. Now the minimum standards your basement has to hit for it to be able to count as assessed sqft not estimated is a height of 7 ft, a point of egress (bilco doors) and a window usually in the rear, It's one of those things where if your going to go through the process of digging out a basement you might as well go for it and dig it deeper then 7 and closer to 8 ft so you actually stand out compared to the competition.

Now the other side of this coin which I would suggest is if you're willing to spend 40-50k on a basement dig, consider adding a 3rd story addition if your a 2 story (think master suite, walk in closet, master bath) or an addition off the back and add a roof deck if your a 3 story (either master suite or just additional bedroom). It's might run you slightly more but you get a hell of a lot more value out of it. Things to consider, if you are a 2 story, you can only build a flush 3rd story addition if you are an end row or next to an existing flush 3rd story, otherwise you will have to do a setback 3rd story addition.

Hope this helps!

This is a smart way to get better ROI. Digging out the basement of an older home is very risky. Water seepage is the main hurdle. Contractors have to hold the structure above (if you have one) while they are digging. You may find other issues while they digging. In my RE journey, I have seen several unexpected issues while renovating houses. Digging basement may face way more than that of renovation . Contractors will not be able to forecast it before starting the job. IN that case, you will end up spending more than the estimate.