Does your basement feel more like an unused dungeon than a stylish space to hang out in? For more homeowners than not, a basement is merely a storage space for unwanted furniture or boxes full of who knows what. By letting this square footage go to waste, you're missing out on prime interior real estate, which can ultimately decrease the value of your home. Plus, what better place to have fun with design than a room secluded from the rest of your house?

Before you begin remodeling, there are some important factors to consider. "As with any room, the first important step is to think about what the space will be used for," says designer Christine Markatos Lowe. "Do you mostly use it during the day or at night? Will there need to be plumbing installed, for add-ons like a bathroom or a wetbar? Will it be a kids space or more for adults and entertaining?" she adds. Once you've nailed down your purpose, there are several factors to contend with. Since basements are typically windlowless or very dim, appropriate lighting is key. "Typically the ceiling height is going to be pretty low, so installing recessed can lights or low-profile flush mounts is a must," Markatos says. "Treating the ceiling as a fifth surface area to play with is also a great way to bring in some more interest through wallpaper or paint to an otherwise dark and flat area."