How to Finish a Basement: A Step-by-Step Guide to Getting Started

Joseph Patrick
Published: August 12, 2020 | Updated: June 3, 2025
Basement Structural

Finishing a basement is one of the most effective ways to expand your living space and increase your home's value. Whether you're planning to turn it into a home office, guest suite, entertainment hub, or family room, getting started the right way ensures a smoother and safer renovation. In this guide, we walk you through the key first steps in finishing a basement—prioritizing structure, safety, and long-term success.

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Step 1: Evaluate the Basement’s Suitability

Before any design decisions are made, assess whether your basement is a candidate for finishing.

Check for Moisture or Water Issues

Basements are prone to water infiltration. Inspect for:

  • Damp walls or flooring

  • Musty odors

  • Visible mold

If moisture is present, resolving it is non-negotiable. Learn how in our dedicated guide on how to waterproof your basement.

Determine the Ceiling Height

Most local building codes require at least 7 feet of ceiling height for finished spaces. If your basement falls short:

  • Consider underpinning to lower the floor

  • Explore benching or house lifting options

These structural modifications can be complex and costly but are often necessary to meet code and comfort standards. You may be able to raise the ceiling height in your basement. 

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Learn how we transformed a crawlspace into the beautiful, well-lit play area you see above:

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Step 2: Ensure Structural Integrity

Your foundation and support structures must be sound before adding drywall or flooring.

Look for Warning Signs:

  • Cracks in concrete walls

  • Bowed or leaning walls

  • Water pooling near the foundation

If your home is older—especially a historic Portland property—you may need to repair or reinforce the foundation. Learn more in our article: When to repair the foundation of a historic Portland home.

Step 3: Plan for Egress and Safety

Basements used as bedrooms or living spaces require a legal egress window for emergency exit.

Egress Windows:

  • Must open to the outside

  • Should be large enough for a person to exit

  • Often require digging and cutting into the foundation

See our full breakdown on how and why to add an egress window.

Step 4: Address Plumbing and HVAC Considerations

Finished basements can include a bathroom, laundry room, or wet bar—each requiring thoughtful plumbing planning.

Key Concerns:

  • Drainage: May need an ejector pump if gravity flow isn’t sufficient

  • Ventilation: Essential for moisture control and air quality

  • HVAC extension: Ensure proper heating and cooling reach the space

If installing a basement bathroom, review your plumbing infrastructure before walls go up.

Tudor Arch Basement-35

Explore the laundry room and bathroom in this Portland basement remodel

Step 5: Design Your Layout and Infrastructure

Before finishing surfaces, define your space with a clear layout and essential systems.

Plan For:

  • Walls: Use moisture-resistant drywall or paneling

  • Ceilings: Options include drop ceilings, exposed joists (painted for aesthetics), or drywall

  • Floors: Choose durable, water-resistant materials like LVP or tile

Not sure what layout works best? Explore recent trends in our Portland basement remodel design ideas case study.

Step 6: Begin Framing and Rough-Ins

With permits secured and design finalized:

  • Frame walls with pressure-treated lumber against concrete

  • Install rough electrical, plumbing, and HVAC

  • Schedule inspections before closing walls

This is also the ideal time to run ethernet, speaker wires, or home theater cables.

Step 7: Insulate and Soundproof

Basements can feel cold and echoey without proper insulation.

Use:

  • Rigid foam board or spray foam for exterior walls

  • Rock wool for sound dampening interior walls and ceilings

This step also improves energy efficiency.

Step 8: Install Drywall, Paint, and Finish Surfaces

Once insulation and inspections are complete:

  • Hang drywall

  • Paint with mold-resistant primer

  • Install flooring, trim, doors, and fixtures

Now your basement truly begins to feel like a natural extension of your home.

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What’s Next?

While this guide helps you understand where to start when finishing a basement, you may be wondering about cost. We created an article answering this question: How much does a basement remodel cost in Portland? and also have a basement remodel cost calculator to help you better understand your basement remodeling costs. 

For personalized guidance, our team at Lamont Bros. is here to help you evaluate, plan, and build a finished basement you’ll love. 

Check out our Basement Remodel Buyer’s Guide for guidance on choosing a contractor, designing your space, and financing your remodel.