Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
I'm working on a rehab in a great school district.
I am considering converting an existing bonus living room to a bedroom to try to increase the ARV by 5-10k and increase interest in the listing. I think the closet will cost $2500 max. House is currently 3/1 and would be a 4/1. I'm too far along to try to make it a 4/2.
I want to build a closet (~8x3) and add a door to an existing open 10x20 symmetrical extra living room area off the mud room & kitchen. Ceilings are about 12' high with fans.
Are permits needed to build a closet? (No new electrical). This is in New Jersey. I will call my township but I wanted to know your experiences.
Do you think it'll add value to add a technical bedroom, regardless of how they use it? This would be a large 'master' bedroom because the other 3 bedrooms are about 12x10. The main living room/dining area is open to a beautiful kitchen (12x14) and is about 16x10. Total house is about 1200 sf.
Most of the similar models have a similar room that's much smaller and have not made it into a bedroom.
Do you have any examples where the additional bedroom didn't add any value to the sale price?
Thanks for all your insights.
Investor · Saint Augustine, FL · Member since 2015 · 227 posts · 61 votes
9y
I know you said you were too far along to add a full bath but if it could back up to the other bath could you add a sink and toilet only...I know the weather is different up there but outdoor showers are great...just thinking that folks here prefer a second bath or partial bath even over another bedroom..if not I think the additional bedroom will add value...
Investor · Saint Augustine, FL · Member since 2015 · 227 posts · 61 votes
9y
I know you said you were too far along to add a full bath but if it could back up to the other bath could you add a sink and toilet only...I know the weather is different up there but outdoor showers are great...just thinking that folks here prefer a second bath or partial bath even over another bedroom..if not I think the additional bedroom will add value...
Real Estate Agent · Parsippany, NJ · Member since 2013 · 186 posts · 71 votes
9y
An extra bedroom is a great idea if you can add a bath somewhere as well. Can you use a portion of that space to add even a half bath? Most people looking for a 4 br are doing so because of the number of people in the household. With that being said, one bath generally doesn't cut it for them. See what you can do to manage an additional bath of any size.
Investor · Howell, NJ · Member since 2016 · 16 posts · 0 votes
9y
Natalie,
I definitely think it is great idea. You're also Corey in calling local building official. Although my NJ experience is that what you are describing does not rise to level of permit, but better to get off on a good foot with local authorities having jurisdiction (AJHs). Also you probably need a Certificate of Occupancy, so building department would be getting involved anyway. The closet itself adds value, as does meeting the technical requirements of a legal bathroom.
I also agree with the idea in another post that a small sink is a good idea. Definitely needs a permit. Princeton is such a nice community that I bet you'll get back every penny of the cost of the improvement and then some. Might be the thing that make a buyer fall in love with the home.
If you want any project management help with design, permitting, or construction please contact me. Princeton is close by.
Best wishes.
Mark
Real Estate Developer, Investor, and Broker · Raleigh, NC · Member since 2017 · 99 posts · 82 votes
9y
Natalie,
There is no question that there are plenty of properties (markets/neighborhoods) where merely converting shared living space into an additional bedroom - without adding any additional square footage, could net you absolutely zero more dollars on the sales price. And in the end cost you money of course to the tune of whatever you spent converting it.
You said you wanted to do this to try and increase interest in it. Can I assume it's been on the market for some time already and it's not sold? It's almost definitely over priced. Even when it's not directly price, it's almost always a form/function problem (which still ultimately means it's not worth what you're asking in it's present floor plan, design, use, etc. so it still ultimately boils down to price). But you said other homes on the market have similar rooms that are smaller and aren't 4 bedrooms, right? Did any of these other houses actually sell or are they currently active/on the market like yours? If they sold, was it recently and how long did they sit on the market before selling? How many price reductions did they make while on the market? Do you see what I'm driving at?
I never add a bedroom or bathroom (or in your case convert main living area into a BR) or add square footage unless the neighborhood tells me it makes financial sense to do so. If you look at everything in the neighborhood in your property's square footage/age/condition range that's sold in the last 6-12 months in the neighborhood, as well as every active and pending listing in the neighborhood, you (or a local broker that's competent at analyzing that sort of data) should be able to get a really good idea of what needs to happen to sell your house.
In my opinion, converting existing living area into a 4th BR on a 1,200sf house with 1 bathroom wouldn't probably net me any additional money on the back end or even likely generate any more interest than it otherwise would as the same sized 3br/1ba. Other areas though, maybe it would. But I'd never spend money guessing at the problem.
I bet you anything there's some other underlying reason it's not sold. Maybe your house hasn't been on the market that long, or longer than average for the neighborhood..in which case if it's priced correctly, it will probably sell at some point. But if you're trying to sell in a buyers market or you're simply trying to be proactive and looking for a competitive advantage over the other listings in the immediate area, I'd be willing to bet that your money would be better spent in upgrading what's already there. IE - more or better landscaping, more attractive color scheme/overall curb appeal, or better light fixtures or bath fixtures, etc.
Unless your house is near a college and your buyer will be an investor looking for maximum cash flow per room rented - 4 bedrooms in a 1,200sf house with 1 bath isn't very likely going to be super functional for most buyers. Again perhaps this is different in your market, but I'd personally want to see real market data that backed that up before I spent money on that. You need to know who you're marketing to and then use real market data (other sales and listings in the immediate area) to tell YOU where to spend the money, or how much you'll need to drop the price by.
Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
9y
@Christopher K. - the house isn't listed yet. A 3 br 1.5 ba house down the street went under contract within a few DOM for +18k my ARV. the partners want to list the house asap so no time for more permits.
@Cheryl Schuck@Mark Moore@Zana Blue - I agree. if I could go back in time, I'd absolutely try to permit to add a bedroom AND bath since the space is plenty large enough. But all the walls are closed up, everything's painted, etc. Trying to add a permitted sink and toilet would postpone selling the house for at least 60 days and cost nearly what we'd net.