If you ask Hollywood, the basement is a dark, damp place where a lot of eerie things take place. This particular area of the home has a really bad rep, thanks to countless horror movies and TV shows. But really, the basement is a goldmine for homeowners looking to up their home valuation.

When your home is more attractive, it adds more value to it. Then, if you decide to sell it, you can charge a higher price for it from potential buyers. Because of this, a growing number of savvy homeowners are beginning to look to their basements to boost their property value. But doing it alone isn’t easy.

Having a professional around to guide you through the home improvement process can help you get the biggest bang for your buck. And luckily, we tapped renovation expert Danielle Mathews of Reborn Renovations to talk about it all.

Mathews knows a lot about what goes into remodeling your space and the growing trend of basement renovations, including how you can take part in the action. According to her, “With the right renovations, homeowners can unlock the full potential of their basements and elevate their property’s value in the competitive real estate market.”

Here’s How To Add $50K To Your Home Valuation

“Basement renovations offer a tremendous opportunity to add value to your home,” Danielle explains. “By investing in strategic upgrades, homeowners can unlock hidden value and create spaces that resonate with today’s buyers.” Here are three ideas for how to do so.

Turn it into a rental suite.

If you need more livable space, one of the most lucrative ways to get it is by turning your basement into a self-contained rental suite.

All you have to do is add some amenities like a kitchenette, bathroom, and private entrance, and you have one, more livable space, and two, more entry to the rental market.

According to Danielle, renovating your basement like that can boost your home valuation by $20,000 to $50,000. Plus, by renting out the space, you get passive income and long-term investment potential.

Create an entertainment hub.

According to a survey by the Research for Institute for Cooking and Kitchen Intelligence, more than half (64%) of Americans prefer to stay home more than go out following the 2020 Covid-19 pandemic. And because more people are choosing to stay inside, finding a way to keep entertained becomes really important.

If you’d like a place to have some fun, an entertainment hub is a good idea. You can design it however you want, from a cozy home theater with a fully stocked snack bar to a high-tech gaming room.

And if you decide to go for it, you can expect to add about $10,000 to $30,000 in value to your home.

Convert to a home office.

When the Covid-19 pandemic happened, remote work became a lot more common. And now that many people are working from home, the demand for a dedicated workspace is higher.

If you work from home, turning your basement into a home office is a pretty good deal. Not only do you add value to your home valuation, but in some cases, it may even qualify for a tax deduction, so you can save money on your taxes.

To make your basement look more like an office, you’ll need the right furnishings. Think ample lighting, an ergonomic desk and chair, and cool tech features to help you maximize productivity.

Plus, if you do it, you could earn a valuation of $15,000 to $40,000.