It really could go either way, depending on how small the other 2 rooms actually are. I have seen buyers walk away from a 4 bedroom home saying the other rooms were more like small closets than actual bedrooms. But at the same time, some wanted the smaller rooms as "guest" or "computer" rooms. So, it really does depend on the person and what purpose they have in store for the living areas.
If you plan on selling the house in the next few years, you will probably not make the money you were out on your renovation back. So this is something else you ought to consider.
Hope this was helpful :) - Sat Mar 26, 2011