Home Buying in Munster>Question Details

Benjm5@hotma…, Home Buyer in Hobart, IN

Is it worth it to buy a 2 bedroom house and add a bedroom if the price is below market value.?

Asked by Benjm5@hotmail.com, Hobart, IN Tue Jun 10, 2008

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4
It really depends on the neighborhood and how much it is going to cost you to add the addition. If you have a realtor you should have them do a CMA on a 3 bedroom home in the area and see if it's going to be cost effective for you.
0 votes Thank Flag Link Tue Mar 26, 2013
While adding a bedroom is generally a good way to boost the value of a home you have to research all options. Have your real estate agent value the home with the new bedroom added on including the added square footage and any information you know about the new bedroom. Will it be a master suite or just another bedroom? What about flooring? Any special features such as a fireplace, walk-in closets, etc.? Then he/she should be able to give you a pretty accurate estimate based on the current market conditions. Next go to your contractor and get your estimates on cost, including materials, labor, etc.

If the cost of the addition is greater than the value it adds to the home you must determine whether you really want to move forward or if you should just move into a 3 bedroom.

Now if the cost of the addition is less than the value it adds to the home you certainly would have a good investment but only you can determine whether it is worth the time and money you invest into the project. What I mean is if you spend $30,000 to add the addition and plan to move in less than a year was it worth the investment if you only increased the value of the home by $32,000 or would $30,000 have been better invested somewhere else?

Now, I’m not trying to encourage or discourage you either way but it is a pretty big decision if your intention is investment purposes. Now if you just love your home and plan to be there for many, many years maybe resale value is not on the front burner.

My advice is collect all the information and quotes you can and make the decision with everyone the decision affects.

I hope that this helps out and good luck and best wishes.

Erik Armstrong
Century 21, REALTOR®
0 votes Thank Flag Link Wed Jun 11, 2008
Yes, but before you make your decision ask your agent to give you an idea of market value if you added on a 3rd bedroom...then figure out construction costs. This will help you to figure out if a bedroom addition is worth it TO YOU and so you don't price yourself out of the market once the construction is complete.
0 votes Thank Flag Link Wed Jun 11, 2008
yes!! Adding a bedroom will add to the market value. Just don't overdo it. keep you additions modest. Good Luck
-Mark
Web Reference: http://www.tritowngroup.com
0 votes Thank Flag Link Tue Jun 10, 2008
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