How much value will be added to my home by adding a third bedroom?

Question

I paid $100,000 for a two-bedroom home with a finished basement in southwest PA. It has a full attic with hardwood floors. Approximately how much value would be added to the home if I converted the attic to a third bedroom? By size, it would be the largest bedroom.

It couldn't be used as a bedroom "as is". It needs the floors finished, drywall, ventilation, ceiling fan and a closet. It has windows at each end. As far as losing the attic space, I'm not worried about that drawback. There is plenty of other storage space in two annexed rooms in the finished basement.

It couldn't be used as a bedroom "as is". It needs the floors finished, drywall, ventilation, ceiling fan and a closet. It has windows at each end. No bathroom. As far as lost attic space hurting the value, I'm not worried about that drawback. There is plenty of other storage space in two annexed rooms in the finished basement.

Answer 1

that depends.... what does your market value a 3 bedroom at? is the utility of the attic space now, just attic? or can it be used now... just not as a bedroom? if it is currently being used as livable square footage... then the value as a "third bedroom" would more than likely be equal to the value of the home as it is now... the thinking being, a bedroom is what you make it..if a family needs three bedrooms but only has two with a usable attic... then they are more than likely going to use the attic as a bedroom anyway. In my market (California) there is a difference in value between two and three bedroom homes, but more difference in value when the square footage is such that a third bedroom could never be possible....so basically the value of the "permitted" third bedroom may be more personal, than monetary.... you may end up investing more into the third bedroom than you will see in a return from an open market sale....
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Read your additional details... Best thing to do would speak with a qualified real estate agent in your area... possibly two; "shop around" what are 3 bedrooms going for in your area?(you will notice often realtors speak price per square foot.. but in general terms appraisers and the buying market speaks in terms of bedrooms/bathrooms/square footage) Is there a noticable difference in the 3 bedroom versus the 2 bedrooms... Is the added value, greater than the cost to renovate the attic to bedroom... do you have a sewer/septic large enough to accomodate the third bedroom... and do you have enough bathrooms to make it functional... a 3 bedroom / 1bathroom home would not be nearly as functional as a 3 bedroom 2 bathroom.... that being said... you should be able to get an idea of the amount of "value" will be obtained by adding a third bedroom...

Answer 2

Converted attic space is not the same as "regular" square footage.

Do a quick search online (www.windemere.com or www.re2k.com) and compare the list prices of some 2 bedroom and 3 bedroom homes.

You're moving into a whole extra market by adding a third bedroom, as the majority of buyers are looking for a 3+ bedroom. If all you have to do is add a closet, I'd go for it.

Answer 3

the best way to check this is to find out what other 3 bedrooms are going for in that area. Since it will be the largest bedroom are you planning to make it the master bedroom and add a bath with walk in closets? Will it be attractive and have large windows with a view?

So check with an appraiser and see if he can give you some compts of the area or you might see if a local real estate agent can assist you with the value after the add on.

You will need to tell whom ever gives you the compts the approximate square footage you are adding and if you are adding another bath.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 4

I live IN NY where a single family goes for 400k. but id say it might add a little value to your home becuase you added another bedroom, which means room for an extra body. but how much exactly i dont kno. Good luck. And the market is bad so I wouldn't look a this as a way to sell your house right now at a higher price

Answer 5

It depends on the size of the house now, and how big the addition would be. The best bet is to call first the tax accessors office in your local county to see if they can give you estimated information, and call several appraisers in your area and see what you could get in your area for a home including the addition. If you need referrals, email me at [e-mail].

Answer 6

If your home is 1200 square feet that means that it would add about $83.00 per square foot in value. So if the room would be 20 X 12 (240 square feet) then it would add about $20,000 to the value of your home.