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Ask A Realtor: Is It Worth It To Finish My Basement?

We’re thinking about selling our house and are considering finishing our basement. We received a quote for $27,000 to do the job, and I’m wondering if it will add enough value to our house to justify doing it. It would add a bedroom, bathroom, living area, and about 1200 finished square feet to our 3 bedroom, 2 bath, ranch style house.

Do you think we will turn a profit on the money we spend to finish it, or are we just hoping to break even? Or is there a risk that we could even lose the money?