Have you had any showings and what was the feedback? Go over the answers with your agent you would be surprised at the helpful things or ideas people can say that can help you sell your home. If this was the only entertainment space some people may find that an issue but again go back to the agent and get their feedback.
Hope this helps,
In certain aspects, the market is improving and certain price brackets and areas have shown some. Location, square footage and additional features could offset the objection to a thrid bedroom.
The 3rd bedroom is a good selling feature but in order for it to qualify as a bedroom it has to have a built in closet not just an Ardmore. Check with your listing agent and get their opinion on the best way to market it. I have a listing witht he same situation and I had to list it as a 2 bedroom and leave it that. Hope I was somewhat helpful.
By spending money to create a third bedroom you are really making the adjustment to attract three bedroom buyers. The reality is there are buyers for two bedroom homes as well. Our recommendation is to go with what you have and see what happens....you may find your worries were not necessary.
Bedrooms normally require: a door for privacy, a window as a secondary means of egress, and a closet. Minus any one of these and you have a room only.