Remodel & Renovate in 07044>Question Details

Olimits7, Renter in Nutley, NJ

Does removing a bedroom and putting in a family room decrease the value of a home?

Asked by Olimits7, Nutley, NJ Wed Oct 17, 2012

If a house has 4 bedrooms & 2 full 1 half baths, and I remove 1 bedroom and use other existing space to create a big family room; will this decrease the value of a home?

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Olimits7’s answer
Thank you for the replies!

I'm just concerned that the mortgage appraisal price will end up being higher with 4 bedrooms, and I will not be able to negotiate lower because of the 4 bedrooms.

But in reality I will be getting a 3 bedroom after the family room add; so if the mortgage appraisal comes in lower with a 3 bedroom then I can negotiate a lower price easier.

In the purchase contract; could I have a contigency that states the family room must be completed prior to closing, and needs to be re-appraised at 3 bedrooms?
0 votes Thank Flag Link Mon Oct 22, 2012
3 Bedrooms upstairs is what it is... For your purposes the Family Room, makes more sense and that is the bottom line. In the future, it should be pointed out that the 4th Bedroom is feasible if you sell. Best of Luck
0 votes Thank Flag Link Mon Oct 22, 2012
Your home will be compared to other 3 bedroom comparable sales with adjustments made for square footage. I can't say how that will turn out.
0 votes Thank Flag Link Mon Oct 22, 2012
Thanks for the replies!

Due to our circumstances, it would work better for us to include this family room add in the purchase price.

My only concern is my mortgage loan office will get an appraisal based on the current 4 bedroom setup, so I'm guessing the appraisal value will be higher than what it would actually appraise for after the family room is added and there are only 3 bedrooms instead of 4 bedrooms; right?

Thank you!
0 votes Thank Flag Link Mon Oct 22, 2012
If you love the house, go for it. I am assuming you have lookied at a lot of properties and like this one for some reason. If there were a bunch of others that you liked just as much at the same price, you probably wouldn't have asked the question. Don't worry about what might happen down the road. If you sell the house, the new buyers will probably like the same things that you like about this property. Also, I would negotiate the changes out of the purchase price and do them yourself after closing. That way, you are sure that you get the improvements made to your specifications. If they have to make the changes, I am sure they will do it in the least expensive way possible.
0 votes Thank Flag Link Thu Oct 18, 2012
The reason I'm asking is there is a potential house that I'm interested in but they list a 4th bedroom on the 1st floor when all the rest are upstairs. And the current 1st floor living room space is small; so a family room would be a must...since this has been a main complaint from other potential buyers looking at the home.

The current homeowners would be willing to convert 4th bedroom and extra available space on the 1st floor into one large family room before the closing; which would make the house more appealing.

But my main concern is the house has a listing price currently included a 4 bedrooms; which I think would usually list higher than a 3 bedroom house. So if they remove this 4th bedroom and put a family room; I don't want to end up over paying since it is really not a 4 bedroom house anymore but a 3 bedroom house that I would be purchasing.

I compared other homes in the area and I see 3 bedroom homes are priced a lot lower than homes with 4 bedrooms.
0 votes Thank Flag Link Thu Oct 18, 2012
Depends if 3 bedrooms 2 .5 baths with a big family room sells well. Why would you care unless you are looking to sell the home in the near future or plan on taking equity loans out. Your home is your home and you should make it how you see fit. There are way too many variables that can play out in this scenario you describe.
0 votes Thank Flag Link Wed Oct 17, 2012
Is the bedroom on the first floor? Is it in an area that would warrant a family room? Many young families are looking for a first floor family room- so if it is on that level, that may be a good thing. What price point are we talking about? Is this property in a market place that is mostly 4 bedroom homes or are 3 bedrooms the standard. There are so many factors that influence market value and how these changes can assist or hinder a sales price.

In order to answer the question with conviction, I would need to know valuable information such as the current market place, target buyer, current inventory etc.... It wouldn't do you any justice for anyone to just throw a yes or a no out there without first accessing the entire situation- an taking ALL FACTORS into consideration.

:)

Lauren Orsini
Sales Representative
Prudential NJ Properties
973 650 1683- cell
0 votes Thank Flag Link Wed Oct 17, 2012
If you are doing this for YOURSELF, and you are going to live in it; don't worry about it: You should love and be comfortable with your house.

If you are thinking about doing this for the next owners, and selling soon; don't do it.

If you want to move, and you are not happy with your present layout; go find a floor plan you like.
0 votes Thank Flag Link Wed Oct 17, 2012
Usually removing a bedroom is not going to get you a gain in the property value. It will, of course, depend on many things but normally it is not something you want to do to increase the value. If you wanted to remove a bedroom to make another bedroom larger, that can often make sense, but to add to a family room does not sound like a great idea.
0 votes Thank Flag Link Wed Oct 17, 2012
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