Planning to remodel your basement and wondering what it will really cost? It’s easy to get excited about adding a home gym, guest suite, or entertainment space, but it is also easy to overlook key expenses that aren’t included in their initial estimate. These surprises can derail your budget and timeline if you’re not prepared.
At Custom Built, we’ve spent over 15 years helping Michigan families remodel their homes with transparency and care. We believe you should go into every project with a clear understanding of what to expect, especially when it comes to hidden costs.
This article will walk you through seven often-overlooked basement remodeling expenses in Michigan and how you can stay ahead of them:
- Egress Window Installation or Upgrades
- Moisture and Water Damage Mitigation
- Uneven or Cracked Concrete Floors
- HVAC, Electrical, or Plumbing Relocation
- Permit Fees and Code Compliance Updates
- Ceiling Height Adjustments
- Materials Upgrades Mid-Project
1. Egress Window Installation or Upgrades
If your remodel includes a bedroom or sleeping area, the Michigan building code requires a legal egress window. Many older basements lack one, or have windows that don’t meet current code requirements.
Why This Adds to the Cost:
- Cutting through the foundation takes specialized labor and equipment
- Excavating and installing a window well requires time and heavy equipment
- Drainage must be installed to keep water out
- Egress window systems and wells come at a higher material cost
How to Avoid Surprises:
- Ask your contractor if your basement layout will require egress
- Make sure excavation and drainage are included in the estimate
- Look at multiple egress window well options to fit your investment goals
2. Moisture and Water Damage Mitigation
PC: Foundation Recovery Systems
Even basements that appear dry can have underlying moisture issues. These are especially common in homes with poor grading or aging foundations.
Why This Adds to the Cost:
- Mold or mildew removal may require special treatment
- Foundation cracks or leaks may need repair
- You may need to install or upgrade a sump pump
- Waterproofing systems can vary greatly in cost
How to Avoid Surprises:
- Ask for a full moisture inspection before construction starts
- Check the sump pump's age and condition
- Consider consulting a waterproofing expert if your basement has had past water problems
3. Uneven or Cracked Concrete Floors
PC: Groundworks
It’s common for Michigan basements to have sloped or cracked slabs that need prep work before flooring can be installed.
Why This Adds to the Cost:
- Cracks must be filled and sealed before finishing
- Floor leveling products add material and labor costs
- Subfloor systems may be needed for luxury vinyl or carpet
- Prep work can delay your overall timeline
How to Avoid Surprises:
- Have your slab evaluated early in the process
- Ask if your estimate includes floor repair and leveling
- Choose flooring that works well with your slab condition
- Consider a finished concrete look if the budget is tight
4. HVAC, Electrical, or Plumbing Relocation
You may encounter obstacles such as low ductwork, water lines, or electrical panels that interfere with your new layout.
Why This Adds to the Cost:
- Moving mechanicals requires licensed professionals
- Materials and labor for rerouting can be costly
- Work must meet current code and pass inspection
- Timeline may be extended depending on the complexity
How to Avoid Surprises:
- Walk through your basement with your contractor during design
- Ask what existing systems might interfere with your plans
- Get a detailed scope of what’s included in the estimate
- Work around existing systems if possible
5. Permit Fees and Code Compliance Updates
Permits are required for most basement remodeling projects in Michigan. Updates to bring older systems up to code can add unexpected costs.
Why This Adds to the Cost:
- Permit fees vary by city or township
- Older homes may require electrical or plumbing upgrades
- Inspectors may require code updates you weren’t expecting
- More detailed plans may be needed for permit approval
How to Avoid Surprises:
- Confirm that your contractor handles permits for you
- Ask what the inspection process typically involves
- Make sure the estimate includes any known code-related updates
- Research your local municipality’s permitting fees
6. Ceiling Height Adjustments
Low ceilings are common in Michigan basements, particularly when exposed ductwork or beams are present. If you are looking to create finished space in your basement, the ceiling height matters. Your ceiling height can be raised or adjusted, but it will add to your cost.
Why This Adds to the Cost (and Two Options):
- Ducts or beams may need to be rerouted or boxed in
- Structural changes, such as underpinning, are expensive
- Drop ceilings and soffits add labor and materials
- Lighting placement becomes more complex
- Remove your existing ceiling material, whether it’s drywall or includes soffits, to open up the space. Some homeowners choose to paint the exposed ceiling black or a neutral color for a finished look. By revealing the existing ductwork, HVAC, and other components, you can gain between 5 to 12 inches of ceiling height.
- Another option (that we have accomplished recently) includes physically lifting your house above the basement, moving it off to the side, extending the basement ceiling height, then lifting the house back onto the basement itself.
How to Avoid Surprises:
- Measure your ceiling height at the start
- Ask what the minimum height is required for finished spaces
- Talk through creative ceiling options with your contractor
- Decide early what tradeoffs you’re willing to make
7. Material Upgrades Mid-Project
It’s easy to fall in love with a new design idea or material once construction begins, but those changes can add up fast.
Why This Adds to the Cost:
- Upgraded materials usually cost more per square foot
- Special orders or custom items can delay the schedule
- Mid-project changes often require rework and more admin time
- Labor costs may rise for more intricate installations
How to Avoid Surprises:
- Finalize your material selections before construction begins
- Ask what’s included in your base price and what counts as an upgrade
- Request pricing for any “nice-to-have” materials up front
- Stick to the original scope unless a change is truly necessary
Next Steps to Remodeling Your Basement
Basement remodeling in Michigan can come with more hidden costs than homeowners expect, especially if you're dealing with moisture, low ceilings, or code upgrades.
By knowing what to look for ahead of time, you can build a more accurate budget and avoid frustrating surprises.
At Custom Built, we help homeowners in the Greater Lansing and Boyne City areas plan their basement remodels with full cost transparency.
Thinking about remodeling your basement? Contact us to schedule a Discovery Call. We’ll evaluate your space, talk through your goals, and provide a realistic path forward.
Now that you know more about the hidden basement remodeling costs to expect, let’s explore what the first step of the Custom Built Proven Process looks like with a new basement finish, how much your project will cost, and the ways you can elevate your space:
- What is a Discovery Call with Custom Built? - This article details what your first call with Custom Built looks like as you start planning your remodel.
- How Much Does Basement Finishing Cost in Lansing, MI? - Finishing your basement for the first time? Learn more about how much it’ll cost today.
- 5 Ways to Elevate Your Basement Space - A guide to upgrading your existing basement space, from home gyms to installing stylish lighting solutions.
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