When selecting a finish for any part of the basement, consider the type of activity that will take place in that area. If the basement is used as living space, the below grade finish should be compatible with the living space above grade. This may mean using gypsum board instead of a drop ceiling tile grid.

Now is also the time to consider the placement of electrical outlets and switches, HVAC ducts and the entrance to the utility room. Group the main utilities (electrical, water and main sewer lines) together in one area of the basement. This area can be left as an unfinished room that hides the utilities, and gives you more design freedom in your basement living area.

Many progressive builders are building 9 and 10-foot ceilings in their basements. The idea of using the basements as extra living space becomes much more appealing to your prospects when the ceilings are higher. The basement becomes more open and inviting and has the same feel of living space above grade.

Also, if your exterior drainage system rests on the footer, you will have to raise the slab to allow for gravel and proper drainage. Building 9 or 10-foot ceilings will provide plenty of comfortable living space for your home buyers, even if you raise the slab.

Assess your heating/cooling system to determine whether or not it is adequate to heat and cool the additional living space. Also, be sure that the ducts are properly directed and vented. Keep basement design options flexible by centralizing your ductwork and piping. Your heating/cooling subcontractor can help you design the proper system that can accommodate your home buyer's present and future needs.

Have your basement wired with enough separate circuits to ensure safe operation and enough capacity to handle all of today's electrical gadgetry. While you are wiring, install smoke alarms. Many municipal codes require a hard wired 9120 volt with a rechargeable battery backup) smoke alarm in all new construction. Keep all of your design options open by including phone jacks, wiring for a speaker/intercom system, and TV cable.

Do not leave kraft faced insulation exposed. The facing is flammable. If you are leaving the basement unfinished, check your local building codes for the proper type of insulation.