Why and when adding a bedroom makes a difference in the value of your home.
You might be surprised to learn that adding a bedroom doesn’t automatically add value.
Additionally, what you consider to be a bedroom may not be counted as a bedroom in an appraisal.
Sounds confusing, right?
Let me explain….
We begin every house appraisal by looking at all of the attributes of your house: location, view, site, size, bedroom count, etc.
Then, we think about who is the typical buyer of your home and what would be the most important things to consider when they are looking for a house.
Would a home buyer pay more if you added another bedroom?
For example, does your current house have 3 bedrooms and it’s located in a neighborhood that is mostly 4 bedroom homes?
So now, the typical buyer would expect to find 4 bedrooms in your house. So, if you only have 3 bedrooms, they may offer less money to purchase your home.
But, what if your neighborhood is mostly 4 bedroom homes and you are thinking about adding a 5th bedroom?
In this case the homebuyer might think that’s just a cool extra. It doesn’t mean they would be willing to pay a higher price for your house.
Here are a few other things homeowners should consider when adding a bedroom:
- Where will this new bedroom be located? Will it be located on the same floor as the other bedrooms or somewhere else?
- How do you access this bedroom? Is there a privacy issue?
- Where is the bedroom located in relation to a bathroom?
- What is the size of the bedroom? Does it meet the minimum guidelines for the purpose of the appraisal?
- Where is the closet for this bedroom located?
- Is there an emergency exit? What does that look like?
- What the local building requirements?
- Do you have a septic system? If so, will you need to upgrade your septic system and what will that cost?
There are many more questions when considering adding a bedroom. Those are just the first ones that came to mind.
Side note, it saddens me to meet people who have put their time, energy and money into a home project thinking it will raise their value. Only to discover that if they had made some different choices the end result would have been more profitable.
So, the most important takeaway I want you to have about adding a bedroom is this:
Before you add a bedroom, please speak with an appraiser to determine the best way to do this so that it adds value to your home.
Additionally, you may learn this home improvement will make no difference at all in your property value.
Also, in some cases, it may decrease the value of your home depending on what you sacrificed in order to gain that extra bedroom.
Then, whatever it is you choose to do, at least it’s a well-informed decision.
This way you will not be blindsided in the future when you get an appraisal report or choose to sell the house.
This post was all about adding a bedroom doesn’t automatically add value to your house.
