One extra bedroom can make all the difference if you need extra space in your home. It can be used for privacy or as an office. Whether it’s worthwhile depends on how much you value your time. If you need the space, it may be cheaper and easier to renovate your home than move.
What Qualifies as a Bedroom According to State Building Codes?
An additional bedroom will justify the price you paid for your home if it meets the qualifications for a bedroom. A room must typically have an openable window for ventilation and escape in case of fire.
It must also have lighting, a closet, and at least 70 square feet of space. In most states, a bedroom can only have one bed, so you can’t use a room as a bedroom if it has twin beds or a daybed.
3 Ways an Extra Bedroom Affects Your Home’s Value
There are three factors you need to consider if you’re evaluating a new addition to your home:
- The list price will go up
- An appraiser will give the house a higher appraisal
- You’ll make back some of what you spend on the project
We’ll cover each one of them.
1. List Price
Sellers may want to include the costs of construction when listing their homes. However, there is no straightforward way to decide how much to add to the price because the amount depends largely on what is happening in the local real estate market and what buyers are willing to pay. For example, a seller who hires an architect to design the home might be able to include a larger amount of cost than a seller who uses an online program instead.
2. Appraisal
If you increase your home’s square footage and the number of bedrooms, your home will be more desirable in specific locations. For example, homes with less than three bedrooms will increase in value more than larger homes in areas where the other homes have more bedrooms. This is especially true if you only have one or two bedrooms.
Both agents and appraisers will use recent sale prices of similar homes in the neighborhood as the starting point for pricing our house. They’ll look at the square footage, the number of bedrooms, and any recent renovations.
Appraisers pay attention to how much space is available, not the number of bedrooms. In some markets, bedroom additions increase the home’s value; in others, they do not.
3. Return on Investment (ROI)
ROI is the amount you can anticipate recouping from an investment. A homeowner rarely recoups the full cost of a bedroom addition. Though the return on a bedroom addition can be high—as much as 75 percent—it also depends on many factors. Location, construction costs, and the quality of materials can affect your return.
The amount you recoup from your home sale depends on the changes you made to the square footage and layout of the home and the current prices of similar-sized homes in your area. The home’s final price determines how much you will actually come out ahead or how much you end up losing.
Conclusion
Your home is a big part of your financial picture. If you’re planning to sell someday, it’s worth asking whether the potential return from an expansion you have in mind is worth it.
If you’re planning to stay home, the extra space could give you a place to escape to. You’ll enjoy having more room for entertaining, family gatherings, and making memories. Building a spare bedroom also gives you a place for an in-home business.
At Greenlight Offer, we understand that selling your house is a crucial decision for you. Unlike other house buying companies, we give you the best cash offer for your home. We handle all complicated details when selling your house, so you do not have to stress about the entire process. We will help you through every step of the way to get the most money possible for your property. If you’re looking for a house buyer in Texas, call us at (713) 558 – 5824 now!
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