Think of your basement as your home's Cinderella: a dark, damp, dingy space just waiting for a little renovation magic to turn it into a clean, bright, attractive new room for a lot less money than you'd spend on an addition.

The basement's natural soundproofing capabilities make it a great playroom, recreation room, or home theater. The sturdy concrete slab floor means you don't have to worry about floor strength and can easily create a laundry room, workshop, or exercise room, or add a bathroom or kitchenette. You can even use the basement's darkness to your advantage by turning it into a home theater, darkroom, or wine cellar.

Before you get too excited about your basement's potential, you'll need to make sure your basement includes enough headroom. Building codes dictate that rooms used for living space, as opposed to storage, have ceilings that are at least 7 1/2 feet over 50 percent of the floor area.

Now consider the type of basement you have. If your house is on a sloping grade, you may have a walkout basement, with one side above ground. A standard basement is 75 percent underground. There may be some small windows at the tops of the walls. Due to limited air circulation, standard basements tend to be cooler, darker, and stuffier than walkouts, so you'll have to work harder to make this type bright, warm, and ventilated.

Now look around to see what condition your basement is in. If you find cracks that are more than 1/4-inch wide or walls that are bowing severely, consult a foundation or basement repair specialist before you proceed with your renovation.

BASEMENT INVADERS

As potential-packed as your basement may be, the fact remains that two nasty subterranean substances could be lurking there—radon and asbestos. If inhaled over a period of time, either one can increase your risk of lung cancer. If either substance is found, you’ll have to deal with it before your basement can undergo its makeover.

Radon is a radioactive gas found within the earth. It can eke into your basement through cracks in the walls or floor. You can test for radon yourself using a radon detection test kit available at most home improvement stores. If the test detects a high level, contact a radon technician to perform more tests. The solution can be as simple as sealing cracks, or as complex as installing a ventilation system that releases radon outside.

Asbestos is a fibrous material commonly used in basements as a fire retardant around furnaces or insulation around heating pipes. If you suspect asbestos, never try to remove it yourself. Contact a certified asbestos technician. Sometimes encapsulating, or sealing the asbestos between other materials, will solve the problem. If the asbestos can't be contained, it will have to be removed.