How is the Square Footage of a Home Determined in Michigan?
When appraisers calculate a home’s square footage, they focus on finished, heated, and cooled interior spaces.
This includes areas like:
- Bedrooms
- Bathrooms
- Kitchens
- Living rooms
- Finished attics
When Can a Basement Be Included in Square Footage?
Determining whether your basement’s square footage can be included in your home’s total square footage in Michigan is tricky.
In Michigan, basements are generally excluded from the official square footage unless certain conditions are met, especially if the basement is below grade. However, there are a few exceptions:
Walk-out Basements: In Michigan, basements with a walk-out entrance—where part of the basement is above grade with a door leading directly outside—may qualify to be included in the square footage. This is because the basement has both egress and ingress, ensuring safety and making the space more functional.
Finished and Livable Standards: A basement must meet the same standards as the rest of your home to be considered part of the livable space. This includes having proper flooring, walls, electrical, and plumbing. Without these finishes, even a partially above-grade basement may not count towards the home’s square footage.
When is a Basement Excluded from Square Footage?
There are several instances when a basement won’t count towards the square footage of your home in Michigan:
Below-grade Basements: Most Michigan homes with below-grade basements—where no part of the basement is above ground—will not have that space included in the gross living area. Even if you have a beautifully finished basement, it won’t count if the space is entirely below grade.
Unfinished Basements: As in most states, unfinished basements in Michigan will never be counted towards square footage because they do not add to your home’s livable, usable space.
How Finished Basements Affect Home Value in Michigan
Even if your finished basement doesn’t count toward your home’s official square footage, it can still add significant value.
According to real estate experts, a nicely finished basement in Michigan can boost your home’s appeal and fetch a higher price from potential buyers. While appraisers don’t assign the same value per square foot to a finished basement as they would to above-ground living areas, the finished basement space is often assessed at around 50% to 60% of the value of the above-grade square footage.
Whether or not your basement is officially included, a well-finished basement can add functional living space that increases your home’s overall market value.
Adding More Value with a Finished Basement
In Michigan, finishing your basement is a great way to add value and usability to your home.
Even if the space doesn’t count towards your home’s official square footage, it provides additional living areas that can serve as family rooms, guest suites, home offices, or gyms.
Want to learn more about how a finished basement can increase your home’s value? Check out our articles: Calculating the Value of a Remodeled Basement and Value of Finishing a Basement.
