Bedroom values

Bedroom values will depend on the location, size and number of the bedrooms in the home. In my county, a bedroom is defined as a room that is at least 70 square feet, has a built in closet and an egress window. Each county may differ a bit, but I'm sure most places are similar in the fact that a bedroom usually offers an egress window and a closet. Some of the older homes do not offer closets. Some rooms that function as bedrooms do not have windows or closets, but are plenty large for a bed.

One of the biggest mistakes I see is home owners that take a three bedroom home and convert the three bedroom home to a two bedroom home by removing the wall between the two bedrooms. The reason why this is a mistake, most of the time, is that when the appraiser goes to pull comparable sales, they will have to find two bedroom homes and homes that bracket the overall square footage. When they do this, what usually happens is that the two bedroom home drives the value of the home downward and the square footage of the home drives the value upward. As a result, the overall value is pulled downward. I understand why home owners do this. They want a nice big bedroom and there is no need for three small bedrooms anymore, as the children are grown up.

For bedrooms in the basement, first make sure you don't make the mistake above and think you can make it up by adding a bedroom in the basement. This is because bedrooms in the basement are treated differently than bedrooms on the main level. So when they are placed in the appraisal, they are placed in a separate areas. And just for the record, when buyers are looking at your home, they will be looking for a certain number of bedrooms on the main level. Here's what I've found.

When home couples are about ready to buy a home, they will look for homes in anticipation that they will need additional bedrooms on the main level for the children. The most typical and acceptable number of bedrooms on the main level is three. They usually want the bedrooms on the main level when their children are young.

Some families don't mind or the Realtors convince the buyers that a split bedroom count is the best they will be able to get for the price. In some cases, this is completely true. Now as the children start to grow and get older, the children and the parents begin to want their own privacy. I've seen some homes when the master bedroom is located on one side of the home and the other two bedrooms are located on one side. This separates the bedrooms so that teenager can be a bit noisier and the parents can have their privacy. As families’ development, bedroom location is more about privacy and less about getting to young babies in the middle of the night.

Once the children move from the home, older folks have many things in common. First, they do not want stairs and second, they do not want basement, third, they want a larger bedroom and a guest room. This is when they will usually convert one of the three bedrooms to one large bedroom and one small guest bedroom.

When refinancing

Each case will be different and depend on your market area. If two bedroom conversions are common in your market area, you may not have to do much. If you've paid your mortgage down and don't need much equity, you'll probability be just fine. Your loan will go through, regardless of the bedroom count.

If the lack of bedroom count is declining your home value, you may have to add the wall that you removed. But first, let the appraiser complete the appraisal and look at the comparable sales, then decide. I've found that in some cases, if the home is average and it is located in a market with many three bedroom homes and you now have a two bedroom home, the value of your home will decrease.

In some cases, many homes in the area will be two bedroom homes and limited three bedroom homes. So if you have converted your three bedroom home to a two bedroom home, your home may conform to the market better and the value may be just fine. In other cases, it will not make much of a difference either way. Many homes in my local area will have larger 1800 to 2200 square feet of living area plus a full finished basement. The main level will only offer one or two bedrooms. In my local area, these types of homes are common and the bedroom count will not influence the home value. So, most of the time, the number of bedroom count and the value will depend.

When selling

Make sure your bedrooms are clean and that you have closet doors in each of the bedrooms. Paint the rooms, if needed. If rooms do not have built in closets, consider hiring a contractor and building permanent closet for each of the rooms that don't have one. Putting a temporary closet or a one that is not permanent in the room will not count as a permanent closet. Make sure the windows are clean and working property. If you have made two small rooms into one large one, consider converting it back. If you have enough square footage and your home offers one or two bedrooms on the main level, you may want to consider installing an additional bedroom. Again, make sure you hire professionals when doing any improvements and make sure you get all of the correct permit history. Permit history is extremely important for any improvements.

When buying

If you've found a home that offers a converted bedroom, review the comparable sales with your Realtor Sometimes, you'll be able to get a good price for a home like this because the value is being set by the bedroom count and not the square footage. Secondly, many people may miss looking at this home because of the bedroom count. So when looking, consider the square footage of the home and keep an open mind. You'll have a higher probability of locating a home that you like at a good price.

If the bedroom count is a two bedroom, but public records notes that it is a three bedroom, then you should be able to convert it back, if needed. You should not have to go through bathrooms to get to bedrooms. This is a functional issue and this alone may make this home harder to sell. Only buy these types of homes if you can get them for a discount and you can fix them. If not, all you'll be doing is buying a problem. Make sure each room is larger enough for a bed and each room should have a full bed. Most of the bedroom sizes I see are at least 10 x 10. If the room is too small for what your county considers a bedroom, use your judgment. While some rooms might be a legal bedroom, the market may not see a 70 square foot room as a bedroom. So in all actuality, you may be buying a two bedroom home at a three bedroom price. I've seen several cases like this in my local market area. So the moral of the story is don't buy a home that is advertised as a three bedroom home when it really is a two bedroom home with a larger walk in closet.

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