I did something like that just 4 to 5 months ago. My suggestions are:
- Check the basement head room. If the basement has a low ceiling already, you may not want to spend too much effort in converting it into a living space. A low ceiling will not be a very nice living space given the time and effort and money that you will spend on converting it. My basement has a low ceiling and I converted it anyway. If I could start this over with, I would not bother converting it. Moreover, if you raised the floor (in order to make the floor even) and then put in a drop ceiling, your basement head room will be even lower than it is now.
- Leveling the floor with leveling compound or concrete is no fun, is hard work (bad for your knees), is nothing to be proud of (I gain no credit by pointing at my floor and tell my friends: "I level it!"), is very easy to make mistake, and is next to impossible to undo the mistake, and is costly if making mistake. You are better off contracting this out. If I could do this over with, I would surely hire a pro to do that part of the job.
- At the minimum, you should postpone this until you have lived in your new house for a year or two. Then, you will see whether your basement really has no water problem or not. Watching it for one season is not enough in my opinion because the water can come from many places that may only come in a heavy rain storm. Moreover, after one or two years, you will have a much better idea of how you can use the space in the basement.
- Considering the time and money that you need to spend on fixing the basement and if the ceiling head is low, you may find that leaving the basement for storage may be a good idea. Or you can simply put rubber tiles over some area in the basement and use that area for doing exercise (put plastic sheet under the rubber tiles). I have seen very nicely done storage area in an unfinished basement in one of the Sunday Times Magazine. Or you can put your workshop there. You really don't have to finish it.
- The "self-leveling" property of leveling compound is much less than what you and I might have thought. It is "self-leveling" as being compared to concrete. It may work in a small area (like a small bathroom). But in a large area, you still need to help it along with tools.
- Leveling compound is very expensive. If your floor is so uneven, you need to even it somewhat with concrete before using the expensive leveling compound. Or better yet, you can use wood strips to level the floor if you don't mind losing the vertical space for the wood strips.
- Find the exact level line in your room using a laser leveler or a water-tube leveler and then transfer the level line to the floor level, instead of depending on the so-called self-leveling property of the leveling compound.
- Use a string to connect the leveling line that you have marked on the wall to find the high spots and low spots in your floor instead of depending on eye-balling.
- Mark the high spots in your floor, and never pour anything that will be above the high spots. This is easy to pour the concrete and leveling compound; but this is very difficult to remove them if you pour too much and they have become hardened.
Hope I have talked you out of doing this. Good luck with whatever that you will decide to do.
Jay Chan