An average basement remodel costs $25 to $65 per square foot or $12,500 to $37,500 total with labor, depending on the size and scope of the project. Common basement remodeling jobs include:

• Adding or upgrading a bathroom
• Turning an unused space into a bedroom
• Adding a home theater room
• Adding a basement kitchen

Remodeling a basement has a 65% to 70% return on investment (ROI). The exact value a basement remodel has will depend on the changes made and the square footage.

When selling a home, the Multiple Listing Service (MLS) separates the above ground square footage from below grade square footage. Above ground spaces are worth about twice as much as lower-level rooms.

A basement remodel takes 3 to 8 weeks on average, depending on the size and changes made. The following factors may increase the project timeline:

• Materials on backorder
• Demolition
• Structural changes
• Mold or water damage mitigation

Some use the terms remodeling, renovation, and finishing interchangeably, but they're technically different from each other:

• Remodeling means to change a room's appearance or function. Common remodeling jobs include adding rooms or walls.
• Renovating means to restore a space to its original condition, not changing structures or adding rooms.
• Finishing a basement means converting it from bare concrete to a livable space with walls, windows, and floors. 

Yes, you need a permit to remodel a basement. Building permits cost $500 to $2,000 when structural changes are involved. Permits make sure your changes are done properly and up to code. Remodeling without a permit is risky and can negatively impact your home's resale value.

First, search our list of basement contractors, then:

• Compare multiple estimates from companies with 5+ years of experience.
• Browse reviews on HomeGuide and Google.
• Confirm that they're licensed, insured, and bonded.
• Beware of the lowest quotes, which can result in low-quality work.
• Ask for a written estimate and contract before work starts.
• Only make the final payment after the project is completed.

Ask these questions to help find the best basement contractor:

• How much experience do you have with remodeling basements?
• Can I see pictures of past remodeling projects?
• How long will this job take?
• Do you offer a warranty for your work?
• Does your estimate include materials, labor, and cleanup?
• Will you hire any subcontractors?
• What unexpected costs can come up for this kind of project?
• Will you handle any necessary building permits?