Earlier this month, a Zillow user in the Kansas City MO area asked how adding a 4th bedroom would affect the value of his home.
We have a finished basement with full bath and full kitchen and own entry. Our house sits on 10 acres and is 3300 square feet. We can add a fourth bedroom with egress doing the work ourselves for about $3000 and use a space that is unused. Will this add value?
Team Gipple Response:
Value can be expressed a couple different ways- A sheer increase in property value as reflected on an appraisal OR increased value in terms of the marketability of your home should you sell it.
Of course, an appraisal is very statistic-driven, looking at such features of a home as neighborhood sales data, number of bedrooms and bathrooms, finished square footage, etc. As a realtor, I will speak to the value which comes from marketability, or in other words will a 4th bedroom make your home more valuable/desirable to potential home buyers? In my experience, buyers often favor a home that has 4 or more bedrooms. Not only do you appeal to buyers that need the extra bedroom to accommodate their family, but oftentimes buyers seek an extra bedroom that can be used as a guest room, home office, playroom or exercise room.
With the set-up you described in your lower level (full bath, full kitchen, separate entry), I think a 4th bedroom might be a particular asset, as it could be marketed as a suite- for perhaps a teenager or in-laws.
Just be cautious that you do not finish all your extra storage space- buyers love that too!