Having a basement bar can be a fun and convenient addition to a home, but many homeowners wonder if installing a basement bar will actually increase their home’s value. There are a few key factors to consider when determining if a basement bar is likely to boost resale value or lead to recouping the project costs.
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How much does a basement bar cost?
The cost to install a basement bar can vary dramatically based on the size and finishes. Very elaborate custom built-in wet bars with high-end appliances, cabinets, countertops, and flooring can cost $30,000 or more. However, simpler DIY basement bars with a basic counter, cabinets, sink, and mini-fridge can be done for $2,000-$5,000 in materials.
According to HomeAdvisor, the average cost to install a wet bar is around $7,000. Their data shows:
- Basic basement bar – $2,000-$5,000
- Wet bar with sink and plumbing – $5,000-$12,000
- Custom built-in wet bar – $15,000-$30,000+
So while a high-end wet bar with tile, stone, top-of-the-line appliances, and elaborate cabinetry can get very expensive, a simpler DIY basement bar can be done at a more moderate price point for most homeowners’ budgets.
Does a basement bar increase home value?
Whether or not a basement bar will increase a home’s value depends on several factors:
- Quality of the bar – An exceptionally designed and finished bar is more likely to wow potential buyers and be seen as a value-add versus a lower quality DIY bar.
- Home value – In higher-end homes ($500K+), a wet bar may be expected and be a neutral value factor. In mid-range homes, it could boost value if meeting buyer preferences.
- Area home values – In higher price point markets like Southern California a wet bar may not impact value, while in more affordable markets it could be a differentiator.
- Buyer preferences – Some buyers may love entertaining space while others may prefer square footage for bedrooms.
- Basement appeal – If the basement itself is already finished nicely, a bar could complement the space. An unfinished basement with just a bar may have less appeal.
Overall, a professionally installed higher-end wet bar is more likely to recoup at least some of its cost than a basic DIY bar. But the bar itself may or may not increase overall home value depending on market factors.
Does a basement bar appeal to buyers?
Certain buyers will find appeal in a basement bar and be willing to pay a premium for the home. Key buyer demographics include:
- Young professionals or couples without kids
- Empty nesters
- People who frequently entertain
- Sports fans
- People who want a dedicated “man cave” or “she-shed” space
However, families with young children often prefer to convert basement space into kid-friendly play areas or additional bedrooms if possible. And some buyers may see a basement bar as a turn-off if they don’t drink alcohol.
If selling the home, it’s safest to market the basement bar as a versatile entertainment space or hobby room. This leaves the space open to interpretation for what the new owners may want to use it for.
What increases basement bar appeal?
Certain elements can maximize the appeal of a basement bar to potential home buyers:
- Completing other basement finishes – Buyers want to envision how they’d use the space, so finishing the surrounding basement can help them picture it.
- Upscale finishes – Granite counters, stone backsplashes, glass tile, and top-end cabinets appeal to buyers looking for luxury.
- Open layout – Bars integrated into a larger entertaining area or open floor plan tend to have broader appeal than closed-off spaces.
- Adequate lighting – Proper lighting helps buyers visualize enjoying the space.
- Multiple functions – Designing the bar area to also accommodate a tv, game area, exercise space, or hobby zone expands the functionality.
The most important factor is integrating the bar into an overall finished basement, rather than having it stand alone in an unfinished space. This frames it as one feature of a larger entertaining area or multipurpose room.
Considerations for adding a basement bar
Key considerations before installing a basement bar include:
- Hiring a contractor – Unless you have carpentry, plumbing, electrical, and finishing skills, hire pros to ensure it’s done right.
- Getting permits – Building permits are required for electrical, plumbing, gas, and structural work.
- Inspecting for leaks – Fix any water leaks before building to avoid mold and moisture damage.
- Layout – Map out an efficient and appealing layout for the best traffic flow and function.
- Ventilation – Adequate ventilation is crucial with a wet bar to prevent mold and stale air.
- Resale appeal – Neutral designs have the widest appeal. Too personal or niche themes may turn off buyers.
Careful planning and hiring professionals for specialty work can help ensure your basement bar adds function and enjoyment for your family and appeal for future buyers as well.
How can you use a basement bar other than drinking?
A basement bar doesn’t have to be just for serving alcohol. The space can be designed for many other functions. Some alternative ways to use a basement bar area include:
- Entertaining space – Serve non-alcoholic drinks and appetizers when hosting get-togethers.
- Game zone – Add a pool table, dart board, card table to create a game area.
- TV/lounge – Designate the space as a casual TV watching and movie zone.
- Exercise/dance – Open floor space that can be used for exercise or dance classes.
- Crafting – Use the countertop as workspace for hobbies like scrapbooking or model building.
- Home office – Transform it into a spare work-from-home office area.
- Kids’ playroom – Remove bar section and make a child-friendly play space.
So while the term “wet bar” implies drinking alcohol, there are plenty of ways the space can be adapted for all ages and interests when selling or using the home.
In Conclusion
The return on investment from adding a basement bar depends on the quality of construction, overall home value, market trends, and buyer preferences. A thoughtfully designed and integrated wet bar can potentially add some resale value, particularly in mid-range homes in some markets. However, cheaper DIY bars are less likely to boost home value. While a prospective buyer may see it as a perk, it’s rarely a major value driver alone. Focus on finishing the entire basement space to appeal to the widest range of buyers.
Here is a summary of the key considerations:
| Factor | Impact on Home Value |
|---|---|
| High-end custom wet bar | May increase value slightly |
| DIY basic basement bar | Unlikely to increase value |
| Completely finished basement | Bigger impact than just the bar |
| Buyer preferences | Depends on demographics and interests |
| Area home values | More impact in mid-range home markets |
A basement bar can be a fun asset to add extra entertaining space for many homeowners. But approach it as a lifestyle upgrade rather than an investment in added resale value. Careful planning and design will provide the most enjoyment and functionality whether you live in the home for years or sell it sooner.