What is the difference between a basement and a cellar?

A basement is typically finished or finishable living space with adequate ceiling height and often at least partial natural light, while a cellar is usually a lower, unfinished area used mainly for storage or mechanical equipment. That distinction matters for real estate purposes because only a basement meeting code can be converted into legal living space or an ADU. Brian Beatty can help a buyer figure out which category a specific space falls into before assuming it adds usable square footage.