Realtor · McKinney, TX · Member since 2016 · 106 posts · 90 votes
When looking for deals I am seeing a lot of homes that are quite small on large lots. These homes are 2 bed/1 bath and 3 bed/ 1 bath, built in the late 50s and 60s.
As a general rule is it a good idea/ bad idea to build onto the home an additional bedroom and bathroom?
I just don't think the 2 bed/1 bath or the 3 bed/ 1 baths sell very quick.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
10y
In SoCal, it makes much sense, turning a 2/1 into a 3/2 is quite common. There is a 100-150k difference in price between selling a 2/1 into a 3/2, IF you spend 70-100k on an addition (hard and soft costs), may it be up or extension, there's the 30-50k upside.
Dover, DE · Member since 2016 · 86 posts · 32 votes
10y
Adding a bathroom is obviously pricey and bringing on an addition that would provide sq ft for a bedroom may not yield you a return on your investment.
Run your numbers.
Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
10y
In SoCal, it makes much sense, turning a 2/1 into a 3/2 is quite common. There is a 100-150k difference in price between selling a 2/1 into a 3/2, IF you spend 70-100k on an addition (hard and soft costs), may it be up or extension, there's the 30-50k upside.
Flipper/Rehabber · Chesterfield, MI · Member since 2016 · 94 posts · 35 votes
10y
My feeling is that it depends on the house. It's something you have to take into account when you're evaluating the property. Where is the plumbing and how easy would be to have that extra bathroom or half bath? Furthermore, is there someplace that you can create another bedroom-possibly basement or existing garage into a bedroom and adding just a garage to the house. Or maybe you could have an extra bedroom go to the side or to the back of the house and it would still flow with the house layout. Some places are just impossible add on because of lot size or configuration of the house. I would run the numbers and see what's practical. Obviously, it's always better to have three bedrooms rather than 2 and 1 1/2 baths rather than one. But it has to be practical as well.
Investor · Detroit, MI · Member since 2016 · 211 posts · 144 votes
10y
First before you put too much work into evaluating and pricing additions check with you local building and planning departments. There may not be a restriction per say on the number of bedrooms or bathrooms a home may have but there may be an ordinance that restricts building envelope size and lot coverage which may restrict you being able to add to the building envelope or size of the building.
Once you are sure the property has the space to meet the lot coverage restrictions if any and you can still add to the house then at least you know the building department will not turn down your application for an addition for that reason.
Know in advance you will not be wasting your time planning for and pricing the cost of an addition the planning department or building department would never allow in the first place.
Investor · Detroit, MI · Member since 2016 · 211 posts · 144 votes
10y
i have one more recommendation. Never simply assume that an addition will add to the sales price of the house your are dealing with. Base your decision on what the market supports. Be sure of those figures by checking with local real estate agents, ask their opinion.
I once spend spent allot of money remodeling a home by adding one more bedroom and one more bath plus allot more work updating a home thinking I could get another $100,000.00 upon sale. The borrow's bank appraiser appraised the house at the very same price and value the house had appraised for before all my remodel work and additions because that was what the market dictated and what that banks would support.
Investor · Richmond, BC · Member since 2013 · 316 posts · 133 votes
10y
There was a blog post yesterday I think about just this subject. One thing that was mentioned, a cautionary tidbit that stuck although it may not apply to your circumstances, is that if the bed or bath is added to a BASEMENT, it may not be appraised as an additional bed/bath - even if it's walk out - and may be ticked off as "finished basement" instead. Even if that might not affect the listing price, it might affect financing - for the buyer or for refinancing - so that was something I'd never heard of but would totally be a drag so I thought I'd pass on.
The post was called '7 creative ways to bedrooms, bathrooms.....' by Andrew Syrios, just FYI.