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

Question

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?

Billy Daniel · Answer

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...

Joel Broyles · Answer

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?

Dustin Allen · Answer

@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.

Eliott Elias · Answer

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

Josh Young · Answer

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.

Karl McGarvey · Answer

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.