Homeowners who have full or partial basements that can be transformed into living space are essentially sitting on a real estate goldmine. Surveys indicate that finishing a basement ranks third (kitchen and bathroom renovations being the first two) in raising the value of the home. Here are some more advantages to basement remodeling:

• Being below ground basements are naturally insulated by the earth meaning they are cooler in the summer and warmer in the winter.

• Additional space in the main living area can increased by moving the kids' room, recreation and entertainment downstairs. This means extra room upstairs to increase the size of bedrooms, bathrooms and kitchens

• Home office with a separate door to conduct business and take appointments without the encumbrance of interruptions from the family. In other words, it would be a professional place of business.

• Putting the entertainment, exercise area, workshop and laundry room in the basement makes the rest of the house a quite haven. Conversely, a den, sauna or whirlpool can be put in the basement as a quiet retreat from other household activity.

Moisture: Enemy #1

You've decided that you want to turn your basement into livable space and your mind goes wild with design themes. However, before you pick up a hammer there are some points to consider, especially if the majority of your basement area is mostly below ground level; and they all begin with moisture.

Because even apparently-dry basements can develop moisture problems during humid weather and it starts with condensation on cold floor and wall surfaces.

By its very nature concrete do not only lets in moisture,but draws it inside the walls by capillary action. In fact the average basement lets in approximately 18 gallons of moisture each day, several times more than bathrooms and kitchen areas (notorious for moisture) combined! This problem intensifies if the foundation is cracked.

If your basement is already finished you can easily figure out if there is a breach in the concrete by:

• mildew smell or visible mold

• peeling paint

• damp spots or whitish deposits on the walls

• rust on tools or appliances

• dry rot

If you have any of these symptoms call a waterproofing professional. It's worth the visit.

However, you can improve conditions inside by some outside preparation to prevent water from getting there in the first place. That means making sure that the earth next to the basement wall is higher than any other ground by about 20 feet. Start by grading the landscape away from the house and make sure the downspouts ends in a drain tile to drain away from the basement.

Starting to Renovate

Before you begin check and see that there is a drain. If there is a leak in any pipe, either upstairs or down in the basement, the damage will be bad enough without having nowhere for the water to escape.

Some carpet manufacturers state that you can place their product directly on the concrete. However, carpet by itself isn't good enough because warm, moist air percolates through the fibers and condenses at the bottom of the pile. This spells mildew.

Insulate: You can do your floor in many ways but if you want an insulating factor start with a layer of 1 1/2 or 2-inch thick extruded polystyrene foam placed against the concrete floor with a layer of 5/8” to 3/4” plywood on top. Secure concrete screws directly into pre-drilled holes in the concrete floor. You get a warm, dry, all-wood subfloor that will take any kind of finished flooring safely, including carpet.

Wafer Board: Alternatively, you can put down some version of new products that are designed specifically for basement subflooring. These use tongue-and-groove sections of wafer board with a dimpled rubber or plastic backing. This backing prevents moisture coming up through the floor and the pattern of the plastic allows air to circulate underneath the flooring. These dimple-board products only use 1" of space and are a lot easier to put down than the plywood-over-polystyrene. That's why you need to consider some floor insulation strategy upfront.

Now Start

1. Heating: Your existing furnace should be fine to heat your finished basement. However, research commissioned by the European Community shows a 50% to 80% reduction in humidity and domestic dust mite populations in the households with radiant floor heating.

2. Air Quality: Cold air returns will help the air in your basement circulate and keep it feeling. fresh. You can add a cold air return to your existing air return by sheeting/closing in the space between two studs and linking the cavity to an existing return with a metal take off and elbows. Cut a hole in the outside part of the wall (between the studs) and cover it with a cold air return register.

3. Design: Eliminate as many posts and columns as is practical If air ducts or plumbing have to be moved place them along walls or beams and leave high ceilings in the center of rooms for headroom. And make the room seem wider and longer with the use of horizontal design elements.

4. Insulate: Fiberglass is fine between the studs with a good vapor barrier. Polystyrene doesn't provide the same insulation (R-value) as fiberglass but might be better to use in a basement since it will not absorb water and moisture. In any event a dehumidifier will take care of the excess moisture and can be set to your own comfort level.

5. Paint and Wallpaper: Stick with lighter colors for the walls. Using light paint and wallpaper colors will finish off you basement in a cheery atmosphere.