A certificate of occupancy will be necessary from your town, along with a building permit. Although you are not changing the footprint of the house, there will be an impact on your taxes. The tax assessor's office should have a formula for your area for a 2-piece bathroom.
1. I would call it a remodel because you arent adding to the footprint..but other could call it an addition
2. A half bathroom WOULD likely be a good investment if done at a low cost in your neighborhood. So the question for you is will the new bathroom fit into your homes design and look good? or is it in an odd location? If in an odd or unnatural location it could actually reduce the value of your home. A real estate agent or architect can help make this decision
3. Try the online kitchen remodeling calculator at http://www.remodelormove.com it will give an estimate of the cost for this remodel and an estimate of how much your home could appreciate.
Thanks for all the comments.
On this one, I'm going to have to side with Terry. Unfortunately, home buyers are not huge fans of the bathroom next to the kitchen. As one of my buyers told me recently when looking at a similar 1/2 bath addition in an otherwise completely lovely home, the bathroom next to the kitchen was "gross." In the majority of situations, the 1/2 bath next to the kitchen becomes a liabilty rather than an asset, and the buyer thinks only of the cost of removing and replacing the bathroom with something more appealing--like a large pantry.
Also, depending on the building codes in your city, a bathroom of 4 feet by 5 feet may be too small to meet building codes. Although you will not be altering the footprint of the home, because you are adding plumbing and additional waste for the area, you should obtain a building permit for the project. When the city reviews the plans for your new bathroom, they can tell you whether or not the new bathroom will need modifications or can even be built in the location you suggest.
Personally, my experieence would lead me to believe that you'll get far more "bang for the buck" by adding little luxury items to the kitchen, such as a lighted pantry rather than the 1/2 bath.
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
I've seen buyers rip out bathrooms near the kitchen.-to make way for huge pantry and another for a small office space for their computer, I've been selling in Flushing North Bowne Park for almost 20 years. Terry K 718-614-3167 cell