Special offer

How Does a Home Office Impact Your Property Value?

By
Real Estate Agent with Long & Foster Real Estate, Inc.

Don't believe everything you read about which upgrades do or do not increase your property value.  All real estate is local, even hyper-local, and some general statements about real estate just don't apply in Crofton Maryland and other communities in the Baltimore-Washington area.

Home officeAccording to Allegra Muzillo, in a blog post earlier this month on Real Simple, it will de-value your home to convert a bedroom into a home office.  Just to add validity to her point, she cites a Manhattan real estate expert who agrees, and says doing this will give you one less bedroom to advertise.

In fact, I've never seen an agent in this area advertise a home as having three bedrooms when the fourth bedroom is furnished and used as a home office.  And I've never encountered a prospective buyer who couldn't imagine office furniture in a bedroom or bedroom furniture in an office. 

Maybe we're just smarter in the Crofton area than folks in some other parts of the country!  But what about your property value...

I don't believe it will make any difference at all in the sale price of your Crofton home, at least not in the eyes of an appraiser or assessor who is concerned with above-grade finished square footage.  If the room has a closet and a window large enough to satisfy fire regulations for a bedroom, those factors will likely determine if it's a bedroom - not the furniture placed in the room or its usage.

My recommendation is very simple:  Put your existing living space to work for you! 

In neighborhoods like we have throughout the Crofton area, homes are similar enough that comps, market trends and condition will determine your property value.  When you're ready to sell, focus on de-cluttering, cleaning, neutralizing, making repairs and staging because THAT will make a far greater difference in your selling price than whether there is a desk or a bed in one of the bedrooms!

Originally posted by Margaret Woda at www.FocusOnCrofton.com

Posted by

This infoMargaret Wodarmation was provided to you by Margaret Woda, an Associate Broker with Long & Foster Real Estate in Crofton Maryland. Contact Margaret today for general real estate information or to learn how she can help you buy or sell a home in Annapolis, Bowie, Crofton, Davidsonville, Gambrills, and Odenton. 

Crofton real estate

HOME SEARCH          HOME BUYERS          HOME SELLERS          

 

Comments (16)

Delete Acct Desert Communities
Palm Desert, CA

I agree!  A room with a closet can be advertised as a bedroom and being used as an "office" should not devalue a home.  Even people who take the closet out to put file cabinets, usually keep the structure the same and the closet doors in the garage.

Nov 16, 2009 01:56 AM
Stephanie Reynolds
Integrity First Financial Group, Inc. - Santee, CA
East County San Diego Homes 619-838-4408

I agree as well. As long as the structure for the closet has not been altered, the room can still be considered a bedroom! Great advice on making your existing living space work for you!

Nov 16, 2009 01:59 AM
Donna Yates
BHGRE - Metro Brokers - Blue Ridge, GA
Blue Ridge Mountains

Margaret:  I agree.  And you took the words right out of my mouth before I even got to the part about an appraisor.  I think office/bedroom/exercise room/ whatever, most buyers know it can be used anyway they choose and showing that it can be a multi purpose room only makes it more attractive to the buyer.

Nov 16, 2009 02:45 AM
Donna Yates
BHGRE - Metro Brokers - Blue Ridge, GA
Blue Ridge Mountains

By the way, love your new picture.  Red is your color and are you getting younger!  I'm jealous.

Nov 16, 2009 02:46 AM
Steve Shatsky
Dallas, TX

Hi Margaret... I think it is simple matter of intended purpose versus actual use.  I have had clients use their dining rooms as offices, but I would never promote it in MLS as such to the detriment of having to promote the house as not having a dining room.  Interesting topic!

Nov 16, 2009 04:29 AM
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Nicely put Margaret ! Most buyers along with their Realtors can envision what it 'could be' but some listing agents overthink their layouts and promote the wrong elements. Steve said it well above.

LOVE the new profile pic btw !

Cheers :o)

Sheldon

Nov 16, 2009 04:38 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Actually by listing the house according to what the town's propertycard shows, furniture becomes negligible. Interesting post, thanks for sharing.

Nov 16, 2009 06:04 AM
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
Real Living | At Home - Washington, DC
When Looking to Buy or Sell - Make the Right Move

U could not agree more!  How you use a bedroom does not impact anything in our area.  In fact I have many clients who tell me; I need an extra bedroom to use as a home office.  They know the difference!

Nov 16, 2009 02:04 PM
Jesse Clifton
Jesse Clifton & Associates - Fairbanks, AK

Absolutely.. I've never seen an agent deduct a bedroom for marketing purposes just because it had a desk in it.  Likewise I have certainly never seen an appraiser deduct value because of said desk.  “People try to envision a room for little Jenny but can’t make the leap past your piles of messy papers.” Now that I agree with but the rest is just crazy.

Btw, Love the new photo!

Nov 16, 2009 08:29 PM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

A little slow to jump in here and thank you for your comments.  On the road in Texas, and haven't had much access to the Internet!

Laxson et al - I couldn't agree more.

Stephanie - I really took exception to that blog post when I read it, because using a bedroom as an office makes absolutely no difference to property value in our area. 

Donna - In some Crofton communities, using a bedroom is the only option for a home office because not all homes have a basement or separate family room.  And thanks for the compliment on the photo...  'Guess I'll have to show up with makeup and hair done from now on, when I meet people for the first time!  LOL.

Steve - Isn't that crazy?  I might take the time/trouble to say "5th bedroom is perfect for a home office" -

Sheldon - Thanks for the compliment on the photo.  Missed you at REBARCamp DC!  And yes, that's one of the things agents do - help their buyer-clients picture themselves in a home.

Ed - In my home, one of the bedrooms is ideally situated for use as a home office or den, and that's how we use it - I think most people would today, but that doesn't change the fact that it IS a bedroom.

James - I hear that all the time, too. 

Jesse - Yes, messy papers, messy laundry, messy toys... it's the "mess" not the desk that makes it hard to envision a room as your baby's nursery.

Nov 16, 2009 10:29 PM
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

I guess I am not sure how you would be elimating a bedroom if you are just calling it something else. I would agree with the writer if you were in fact actually eliminating a bedroom (at least in my area).

Nov 16, 2009 11:37 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Margaret, it's really just furniture!  If I wanted to turn my office into a bedroom, after moving out several tons of paper and des, then moving in a bed and dresser, voila!  Don't buyers have any imagination at all anymore?

Nov 17, 2009 12:32 AM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Bill - That's my feeling, as well.  Now... if you remove the closet, open up a wall into another room... that would be different.

Patricia - Amen!  Who doesn't have enough imagination for that.  (Apparently not the author or her quoted source.)

Nov 17, 2009 01:42 AM
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

I don't understand why someone would eliminate a bedroom, when it can be advertised either way.  I'd list it as a bedroom and advertise as a potential office.  I bet the appraiser would call it a bedroom.

Nov 17, 2009 01:29 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Margaret..What a lovely post..your have really a nice style going here..thank you

HELPFULHANNAH

Nov 17, 2009 01:34 PM
Stanton Homes
Stanton Homes - New Home Builder - Raleigh, NC
Design/Build Custom Home Builder in North Carolina

Home offices are one of the most requested features in new homes, so I can't imagine having a home office as a downside in existing homes.  And just because you put office furniture in a bedroom, doesn't mean that it's no longer a bedroom!

Love your new photo...

Nov 17, 2009 11:38 PM