An unfinished basement comes with exposed pipes and beams, a bare concrete floor, and bare foundation walls. Therefore, the space doesn’t offer the needed amenities for a comfortable stay.

A finished basement is considered as an extension of the upstairs living area. The finished basement comes with air conditioning and heating, flooring such as tile, laminate, vinyl or carpet, and a staircase that leads to the basement. A basement won’t be considered finished if it is accessible by ladder, has plywood and concrete walls, or doesn’t have an HVAC system.