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A walkout basement is considered to be partially below grade because at least one wall is entirely exposed. In some cases and in specific municipalities, inspectors and appraisers will still count walkout basements as below grade, which means the space can’t serve as living space or be rented out. If you intend on using the area as living space or a separate apartment, you should check with your local building department to make sure it’s legal to do so.

It’s less expensive to finish your basement than it is to build an addition to your home. The average cost to refinish a basement is $32,000 (between $7 and $23 per square foot) while building an addition to your home costs $50,325 ($80 to $210 per square foot). Depending on the size of your basement and other factors, like moving plumbing and electrical, refinishing a basement is a more cost-effective option in most cases.

Living in a finished basement is acceptable, but only if the space has the proper points of egress and includes smoke and carbon monoxide (CO) detectors to ensure the safety of the occupants. A good way to ensure your finished basement is suitable for use as living space is to get the basement finishing project properly permitted.

Unless you have extensive experience in construction work, remodeling a basement is best left to a professional. There are several tasks associated with this project that require exact precision, including:

• Replacing insulation 

• Replacing carpet or other flooring 

• Adding heating and cooling

• Adjusting or adding walls and doors

• Altering or adding plumbing elements

If any of these elements is done incorrectly, it could severely impact the quality of your basement remodel and be dangerous. Changing a basement often comes with code safety requirements, like egress windows and proper ventilation. Therefore, leaving it up to a professional is often the best decision.