What % of homes in the neighborhood have basements? It depends on what is expected in a home in your area. In my area a single family home without a basement is undesirable.

Thanks, functionthenlook. About 75% of the homes in the neighborhood have finished basements.

Would it be easier to finish the basement at a later date than add a bonus room above the garage?

Definitely the basement - it is a larger space with high ceilings and access to the outside.

This seems like a no brainer to me. For the same cost you get more livable space and an additional bathroom. Even though it's is below ground, walkout basements are a bit different in terms of light, etc.

The cost to finish a basement and add the bath will be much higher than finishing a bonus room in the future. I suspect the bonus room space will still be there.

Also given that the majority of houses have finished basements you don't want to go against that trend should you need to sell in the future.

Same cost for bonus room or finished basement? Is there a catch? Does the bonus room option have an unfinished basement?

finished basement with walkout would be my choice.

Maybe if you choose basement they use those cheap trusses for the garage roof that makes future creation of the bonus room very expensive?

Basement 100%

Definitely finished basement.

Neither. Save your money.

Normally I would say bonus room because you can't change the trusses later, but it seems a bit of ripoff if it is the same price as a finished basement.

Plumb the basement for the bath, but you already have 5 bedrooms... From a value perspective I doubt you are not going to get a positive return on either one of these things. Most houses here have basements and there is this fad here to increase your square footage by finishing the basement, but it doesn't really work. No one walks into a basement in a house that has 5 bedrooms and says, "we were going to pass, but the sixth bedroom in the basement really sold it."

Take the additional money you would pay and invest that and profit.

A basement isn’t put in for the sixth bedroom. It is put in for the additional living space. In our case it was 100% for the space for our kids to play, watch tv, and hang out with friends (pre covid). Added bonus is guest room down there but it’s hardly used. Play space is used daily

And another thing to consider depending on your location....tornadoes. Few houses around here are built without a basement. A very nice house in my old neighborhood just sat on the market forever due to not having a basement. I don’t think it would have languished if it had a basement but no “bonus room”..

people here expect a basement .

A basement isn’t put in for the sixth bedroom.

The basement will be there in any case... just unfinished versus finished...

I have a 2,400 square foot basement with 10' ceilings which is fully finished but then again the question isn't what I would do with a basement it was from a future resale standpoint should the OP finish a basement with a full bath, a full bedroom, and a living room. My answer to the OP's question is... No. They are unlikely to get a positive Net Present Value from either choice. If the OP wants to finish the basement with a play area for kids... have at it. I don't see the value of a full bath without the bedroom, but that is me.

ETA: I may be making an assumption about the basement being there anyway... But I just don't see a builder in Minneapolis with a daylight basement lot making it optional. They are going to have to dig it out anyway so they are going to install a basement.

If 75% of the homes in the OP’s area have a basement that tells me it is an expected item. If that’s the case I’d build it from the get fo and enjoy. I’m assuming you’ve got at least a kid or two so it would get used.

I live across the river from you.
Finish the basement, or finish neither. Bonus rooms around here are quaint but not all that common and no one would pick one over a finished basement. Finished basements are desirable. (you may be able to do it cheaper later). The only caveat to this is if you have a planned use for a bonus room AND a finished basement. my guess is that if you don't add the bonus room now they won't frame it so you can add it later. you can always finish a basement later.

From a financial standpoint it is almost never a good idea to spend extra money for stuff you are not going to use in order to get a return when you sell the home.

I don't care how many houses in an area have finished basements, that is irrelevant. The question is whether or not you will see a financial gain when you sell by putting in a 6th bedroom, a full bathroom, and a living room in a basement as you are building the home.

If you are spending money today on things that you don't need in order to get a better selling price in 5 or 10 years... don't. It is almost always a loser. The only exception is spending money to add raw unfinished square footage or systems (such as plumbing) that are costly to add later.
Just take the money you would be spending today on crap you don't need or want and invest it. You will almost always come out ahead.

Aside from that, finished basements in Minneapolis are not a risk free thing, I would personally want my basement unfinished for a year or two just to make sure the basement doesn't have a water intrusion issue.

Having had two homes with “bonus rooms” and one with semi finished walkout basement, I would take the finished walk out basement any day. So much more useful. For resale, buyer can build out if desired. I would rough in electricals and plumbing for future bathroom and size. HVAC for future expansion. Shouldn’t add too much cost now and then finishing that off later is very doable. Plumb for shower, commode and sink. Rough in a closet and make sure you have code acceptable window for egress (Fire).

I should clarify. I was talking about bonus space when I outlined infrastructure items to do now. So much easier and attractive for resale too!

Bloke, I tend to agree that adding a bonus room will make your home more valuable for resale over a finished basement. In the Mid Atlantic, above ground square footage is valued more than below ground( even with a walkout) by appraisers. Also, In my area many like to finish basements themselves. Just make sure the unfinished basement includes plumbing rough-in.

Are you already planning on selling a house you haven't even lived in yet?
Bonus rooms in Minnesota are not valued as highly as finished basements. that's why only 30% of the properties in the op's neighborhood have them.
build the house to your needs. if you need a bonus room and a finished basement, buy all means do both. but whatever you do you probably won't recoup the money you spend so do what you need no more.

A bonus room over the garage has limited appeal to me. Rooms over garages are more noisy, need more insulation, and need better ventilation due to auto gases. Finished basement all the way!!

Thanks everyone for your feedback!! Very helpful. Someone asked if we were already planning to sell our house. We’re not planning to sell anytime soon. With only being able to choose between one of the options, we just wanted to see if one option would have better resale value.

I should have provided a bit more background on the bonus room. Bonus room is all or nothing. Builder won’t frame or rough in the bonus room structure if we don’t select the option. Had a few discussions with them about doing the rough in, but they won’t budge or come up with a price. With that said, the trusses and layouts would be different without the bonus room.

After considering the feedback and other various discussions & inputs, we decided to go with the finished basement. The functionality it provides our family helped tip the scale a bit in the decision. Again, appreciate everyone’s help.

Good choice. You won’t regret it.