for resale/rental value keep 3rd bedroom or turn it into an office?

for resale/rental value keep 3rd bedroom or turn it into an office?

Louisville, KY · Member since 2017 · 18 posts · 5 votes

I'm designing my next primary residence. It's a single story house and the standard layout is 3bd 2ba. I have the option of converting the 3rd bedroom to a den/study for a minimal expense. I work from home and I know that is becoming a lot more common nowadays for others. For the best resale and/or rental value, which design would you choose?

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  • Real Estate Agent · Houston, TX · Member since 2019 · 763 posts · 500 votes
    3y

    Depends on the area and the difference between the two rooms. 3 bedrooms sounds more versatile for resale at face value. If the difference is that the office does not have a closet, I would keep the closet.

  • Josh YoungPro Member
    Rental Property Investor / REALTOR® / Property Manager · Gilbert, AZ · Member since 2023 · 384 posts · 421 votes
    3y

    It can vary by market, so check out rental and sale comps of both in your market, just look on Zillow or the MLS to see what's active and what has closed recently. In my market here in Arizona I look for properties that have an office that I can market as an extra bedroom because the extra bedroom brings in more rent and sells for more. A lot of people will tell you being a bedroom means it has to have a closet, but the more important thing is that it has to have a fire egress.

  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    You would have to look at the comps and if other homes did the same thing. Some markets value this conversation, some don't.

  • Real Estate Agent · South Lake Tahoe, CA · Member since 2016 · 680 posts · 644 votes
    3y

    @Tyler Neison

    Keep it as a bedroom and set it up as an office. Nothing wrong with an office with a closet. Definitely a problem when you have a bedroom without one.

  • Real Estate Broker · Member since 2023 · 41 posts · 37 votes
    3y

    Depends on location.  

    Ex 1: high density, mostly young professionals, no kids, small/no yards, townhomes, lots of nightlife, proximity to CBD, low priority to school quality, etc.  I would do an office.  Future tenants or buyers will likely value the work space.

    Ex 2: suburban, mostly families, big box retail, schools very important, big yards, chain restaurants, etc.  I would do a third bedroom.  The #1 driver for people moving out of 2 bedroom apartments into 3 bedroom homes is when 2 people become 3 people. 

    I assume you pose the question with resale or future rental in mind? 

  • Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 751 posts · 504 votes
    3y
    Quote from @Tyler Neison:

    I'm designing my next primary residence. It's a single story house and the standard layout is 3bd 2ba. I have the option of converting the 3rd bedroom to a den/study for a minimal expense. I work from home and I know that is becoming a lot more common nowadays for others. For the best resale and/or rental value, which design would you choose?


    Hi Tyler.
    If I was consulting for you for your own tastes, I'd say do whatever you want to it that will bring you the greatest enjoyment. However, it's difficult to shut off my investor mind set... With my investment specialization hat on, I'd keep it as a bedroom, but add a desk, etc, so you can work from home, but don't lose the bedroom that will help you either as a rental or resale, later.
  • Rental Property Investor · Russellville, AR · Member since 2014 · 684 posts · 509 votes
    3y

    Keep it as a bedroom.  IMO, that's better for resale.  If you market a 2 bedroom, you will drastically shrink your pool of buyers.

    People looking for a 2 bedroom will consider a 3 bedroom.  People looking for a 3 bedroom will not consider a 2 bedroom...

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