How Much Value Does an Extra Bedroom Add?

Home improvements and additions can increase the overall value of your home. However, not all renovations provide the same level of financial benefits. You might get a higher return on investment by prioritizing some home improvements over others. 

One of the most popular additions that homeowners invest in is the construction of an extra bedroom. This can have a significant impact on your property values and in some cases make your house more desirable to buyers. Use this guide to answer, “How much value does an extra bedroom add?” and see if this investment is right for you.  

The Financial Benefits of Adding an Extra Bedroom

There are multiple financial benefits to adding an extra bedroom to your home. First, you will increase the square footage of your property and increase its overall value. Whether you use the bedroom daily or keep it as a guest room, you will reap the benefits of the addition in your home sale. 

The Motley Fool estimates that bedroom additions have a 50% ROI, but this will vary depending on the addition. If you currently have a two-bedroom home and plan to expand it into a three-bedroom property, you could attract a larger number of buyers and see a higher ROI when you decide to sell your house.

Three-bedroom homes are some of the most popular on the market. This expansion could be more lucrative than turning a three-bedroom into a four-bedroom house, or a four-bedroom into a five-bedroom.  

You could also benefit from adding a bedroom if you collect rental income from the property. An extra room to rent will increase your cash flow while expanding on an existing property will allow you to charge more for a whole-house rental. 

Experts also say that adding a bedroom can be more affordable than moving. If you want a larger house but love where you live, it might be easier to build an extra bedroom instead of looking for a larger home in your area. 

The Cost to Add an Extra Bedroom

The cost of adding a bedroom varies by a variety of factors. It’s easier to convert existing space into a bedroom (like turning a garage or attic into viable living space) than to expand your property where there is currently grass and dirt.

The average cost of a bedroom addition is $50,000 but your estimates could be as cheap as $6,000 or more than $80,000 depending on your situation. 

Here are a few factors to evaluate how expensive your additional bedroom will be: 

• Square footage: consider how large the additional bedroom will be.
• Purpose: adding a master bedroom with an en suite bath will be more expensive but could also benefit your home values.  
• Addition or conversion: determine whether you will convert an existing space or if you need to expand the foundation and roof of your home. 
• Location: adding a bedroom to the ground floor is typically more affordable than building a room on the second story – or adding a new story altogether. 

By reviewing these factors, you can see how bedroom additions come with very different price tags. You could affordably convert unfinished space into a bedroom or you could invest in an entire building expansion and story addition for your home.

Zoning Regulations and Legal Considerations

While it’s tempting to start dreaming about an additional bedroom – especially if you currently have a cramped space – it helps to have a clear understanding of your zoning laws and permitting process before you begin your expansion plan. Here are a few legal considerations to keep in mind: 

• Building setback requirements: these are rules for how far from the property line your house needs to be. Most houses need to be at least a few feet from any property lines. 
• Maximum Lot Coverage: many municipalities have requirements for leaving green space on residential lots. Increasing your square footage takes away from your yard space and could breach lot coverage limits. 
• Size limits: some urban areas might have limits on the square footage of buildings or the number of stories they can have. These limits are meant to protect historic neighborhoods or keep communities safe during natural disasters. 

The contractor you hire should go through each of these limitations and requirements when they are developing blueprints for your additional bedroom. They can develop plans within local guidelines. This way, when they start applying for permits for your bedroom space, the plans will be less likely to get denied. 

How to Maximize the Value of an Extra Bedroom

While there is no guarantee that increasing your bedroom count will boost your home value and help you sell your property quickly in the local real estate market, you can take steps to maximize your chances of success. Here are a few tips to get the most out of your home renovation while you live there and when you decide to sell.

• Preserve the flow of the house: add a bedroom where it makes sense, especially if your addition is on the ground floor. 
• Check that there is adequate space: a small bedroom will seem cramped and ineffective. Don’t try to force a new bedroom if there isn’t enough room for one. 
• Consider adding a bathroom: private bathrooms are always in demand. See if you have enough square footage for an en suite bath. 
• Add windows: make your new bedroom feel larger with windows that bring natural light into the room.
• Stage the room: promote the extra space as a bedroom, home office, or nursery when it is time to sell your home.  

You don’t want to confuse buyers with your room addition. Anyone who tours your property should see that your expansion is an extra bedroom that is desirable to sleep in.

Hire a Realtor to Market Your Extra Square Footage

Increasing your bedroom count can make your property more desirable when you decide to sell it. While you can enjoy the third bedroom or fourth bedroom once it’s built, it is ultimately an investment in your resale value. 

When the time comes to sell your home, walk potential Realtors through your existing space and explain how you expanded the square footage of the property. Your agent should adjust the multiple listing service (MLS) data with the updated square foot information so buyers can have an accurate picture of the property. Your Realtor can promote your additional bedroom as a new feature with modern design elements. They will do their best to get the ROI you expect on the investment. 

To find a trusted Realtor, turn to FastExpert. You can read agent profiles from professionals in your area and get to know potential candidates before meeting with them. This can make you more informed during the hiring process. Try FastExpert today and take the first steps to sell your house.