Dear Randall,
You know it truly depends on the particular needs of the buyer and their family needs and lifestyle, they may want to use one of the bedrooms as an office....
They may not even need 3 bedrooms and open up more than one bedroom.... So before you do anything,
that then is definitely a 3 bedrooms, market it as a 4 bedroom home
And in the description declare that it would be easy to turn one of the lower level bedrooms into an open family room, and put a not to that extent on that specific wall.

Also when it comes to family rooms/rec rooms in the lower level, the size may be important to those who truly want that lower level finished rec room, so the size of a bedroom may not mean much to them...

So just stage the home well, upgrade and update what you can so it shows well, open up the spaces if need be remove some furniture or place it differently and let the new buyer decide what they want to do....

Hope this helps! At least without knowing your home and the sizes, but being familiar with split level homes
it should give you some idea.... Also make the entrance to your home, very very welcoming!
Good Luck and happy selling!
Edith karoline YourRealtor4Life! & Your Chicago Area Connection...
Working always in the very BEST interest of her clients....
EdithSellsHomes@yahoo.com

Depending on what the buyer wants, I suggest you advertise what you have currently and mention that the home could be a 3 bedroom with a family room. It is so hard to guess what the buyer circumstances are. More importantly is how does the home show. Please call for further advice.
Thank you,
Shawna Lowell
Dynamic Real Estate
155 W. Harvard, Suite 202
Fort Collins, CO 80525
Office: 970-226-4433

Randall:
Great question.
Certainly look at all the local statistics, and meet with the REALTOR of your choice in person in the Fort Collins area for the best information.

Our National Association of REALTORS does a study every year on the return of home improvement to home sellers. The latest one was done in December 2008. For your purposes, since the report is regionally divided, I can focus on the most current data for homes located in the mountain areas. Your question on bedrooms and baths has been answered pretty extensively at this point, so here is some more data for you.

As a homebuilder, I like to study all the data on home improvement. The highest returns consistently come from kitchen remodels, bedroom additions, master suites additions or remodels, basement remodels, and outdoor living or deck additions and improvements. (from 68% to 80% of cost recouped in selling price increase). Most people who choose the kitchen remodel as the way to WOW a buyer end up quite successful.

Also, national trends are clearly indicating that people are downsizing their homes toward median house price and away from upper prices, and with the right choices you may come out with a strong investment. Buyers are now preferring a well done small home with lower energy costs to a larger one. And with the prices in your neighborhood, you are just below median house price on average, which should increase the number of potential buyers for your home. Definately consider some green improvements to your property as an attraction to buyers. Things like cement fiberboard siding and high efficiency replacement windows and some drip irrigation or xeriscaping also can rate high with buyers.

Whatever you do, make sure not to "out-do" the neighborhood to drastically, as going too upscale with things might not return on your investment.

If you have anymore direct questions, please don't hesitate to write or call.

Best wishes,

Matt Evans
Keller Williams Realty
Fort Collins, Colorado
970-215-9221
mattevansrealestate@gmail.com http://www.mattevansrealestate.com

Now that's a neighborhood Expert! Awesome information from Mike Weber, if I lived in Fort Collins and needed a Realtor, I would be interviewing Mike.

Sandy Kinslow
Coldwell Banker

Mr Edgar,
The answer to your question will somewhat depend upon the end buyer. Given the location of your property and it's proximity to campus, the likely buyer is someone who will be a student and rent to other students, or a landlord who will rent to students. Typical logic then says "leave as many bedrooms as possible". However, Fort Collins' "three unrelated" ordinance allows no more than three unrelated parties to reside in a home in a residential area. Your property is zoned RL, or low density residential, so the fourth bedroom could not legally be rented.

The four bedrooms may be usable by a family, but the busy road out front may deter this kind of buyer.

In 2009, there have been 12 4-bedrooms sold in your neighborhood in an average of 78 days for an average price of $204k. There were only 6 3-bedrooms sold, but for an average of $214k and in 75 days average.

As other posters have mentioned, if you are staying in the home, do what works best for your situation. If you are looking specifically for resale, the neighborhood statistics show the 4 bedroom option is most popular, but the 3 bedroom has a higher average price and sells more quickly. Obviously your location and condition will factor into the final price a buyer is willing to pay.

Mike Weber
Keller Williams Realty
MikeWeber@kw.com
970-310-4289

Here's another vote for 4 bedrooms, but it would depend on your neighborhood. What's the demographic. Who's buying there right now and who do you anticipate will be buying there when you move. I'd give a call to your neighborhood Realtors and ask their opinion.

There's builders currently building ranch style homes with 1 bedroom on the main floor and finishing the basements with awesome recreation rooms, theaters, etc. I would say they're looking at empty nesters.

Sandy Kinslow
Coldwell Banker Residential Brokerage

If you are looking to make the changes to sell the home, leave it 4 bedrooms. If you are looking to make the change because it will benefit your current living situation then it may be worth it to you. Is it possible that the room can be converted back to a bedroom for when you decide to sell? If so, do what meets your living needs.

I would say your house is more valuable as a 4 bedroom. However, if you are removing a non-load bearing wall you could always consider replacing it when you are ready to sell. If you are planning to live in your home for some time you should it enjoy it the way it works for you.

I would vote for the 4 bedrooms.
Brian http://www.kennarealestate.com

I would suggest passing on the living room and keeping the house 4 bedrooms, definitely.