The Value of Adding a Bedroom to a House

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Home renovations are costly ventures; however, if you are able to recoup the costs when you sell, then you can look at your renovation as an investment. Adding a bedroom to your house may increase its value as long as the renovation is a conversion and not an addition. According to real estate broker and senior vice president of Corcoran Group, when you increase the number of bedrooms in your home, you'll increase the value of the property.

Attic Bedroom

By remodeling rather than creating an extension of your house, you will be able to get more of your money back when you decide to sell. Attics are often unused spaces that are easily converted into living space. According to "Practical Homeowner" magazine, converting an average-sized attic into a bedroom with new wiring and windows will see a 104 percent return if you sell the house within a year.

Basement Bedroom

Basements are another underutilized area in many homes and are usually less expensive to renovate than attics. However, since living underground doesn't appeal to a wide audience, the return on your investment drops to 97 percent, according to the same survey by "Practical Homeowner" magazine. The general costs associated with a basement renovation are insulation, flooring, walls, light fixtures and labor.


When considering an expansion rather than a conversion, you must take the area you live in under consideration. If the addition makes your house much larger or higher end than those around it, you may be moving your house into a price point at which buyers interested in the area can no longer afford the property, or at which buyers who can afford the property are not interested in the neighborhood. When considering an extension for a bedroom, it's vital to consult with a real estate agent and contractor to determine whether your investment is sound.


When it comes time to sell your home, the two characteristics of the home that the real estate agent will likely list first are the number of bedrooms and bathrooms. Having a higher number of bedrooms may appeal to a buyer before they even see your property. It's also important to consider how long you will be able to enjoy your investment before deciding how much money to sink into the project. If you plan to stay put for 30 years, your investment is more about how much enjoyment you'll get out of the space. On the other hand, if you only want to be in the home for another year, you will have to carefully consider the market and your neighborhood when pricing your options.


About the Author

Joy Uyeno has been writing about travel, food, fashion, culture and finance since 2005. For three years she wrote a column for the "Honolulu Star-Bulletin" aimed at young and first-time travelers. Her writing has appeared in several local and national publications, including the 2008 anthology "Honolulu Stories." She holds a Master of Arts in writing and publishing from Emerson College.

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