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We have a 2 bedroom, 1 and a half bath home in MD (have had it for about 35 years). My husband and I are retiring and moving out of the area in about a year and a half. This home is in a desirable area (nice neighborhood and walking distance to schools in one of the best public school systems in our state), and my husband is worried that we are going to have difficulty selling the house due to it having only 2 bedrooms. Seems like many people who would be interested in buying a home in this area would have children and need more than two bedrooms.
Does it make any sense to spend 30K on a one bedroom / one full bathroom addition that we personally have no use for in the hopes it will attract more interest and a higher price when we put it on the market? I am inclined to think not, and to reduce the price by that amount if we have trouble selling it. The hubby thinks differently and seems to want to tackle this project. Any advice?
Last edited by sal12345; 01-29-2012 at 11:09 AM..
Reason: location
If you do decide to do it, get a reputable contractor who will obtain the necessary permits and inspections. It can be hard to sell a non code building! I don't know here you are but $30K for a master/bath seems kinda low.
Ask a good local realtor. They know your market much better than either you or us.
I think talking to a realtor also makes sense. They can show you sales comps in your area for a 3 bedroom, 1 bath home vs a 2 bedroom, 1 bath.
Entry level homes are always desirable for young couples who are just starting out. There is nothing wrong with a 2 bedroom, 1 bath home. Let the buyer decide what and where they can add a room if they want to as their family expands.
I watch a lot of home sale shows on TV. It's pretty consistent that it is not wise to do expensive renovations / remodeling prior to selling. It is most often recommended that you clear out and clean up your home, maybe with paint touch-ups. Some buyers like to purchase a home with the original footprint and add their own ideas, i.e. bedrooms and bathrooms.
I think talking to a realtor is highly recommended before you even think about doing something so costly.
Many sellers are having a horrific time selling their homes, regardless of the number of bedrooms/baths. As some have pointed out, there are folks looking for both 2 and 3 bedroom homes, particularly if the 2-bdrm. offers a considerable cost savings.
Rather than put $30K into the house on a 'maybe', why not offer the home for sale for $20K less --- keeping $10K in reserve for negotiation? If you can't sell the house as a 2 Bdrm. for $20-$30K less, the problem is likely something other than a 3rd Bdrm.
I watch a lot of home sale shows on TV. It's pretty consistent that it is not wise to do expensive renovations / remodeling prior to selling.
Renovations & remodeling are an entirely different category from additions. I know people that make their living by buying homes, adding on to them, and then selling for a profit.
A two bedroom home can be a really tough sell (at least in these parts). I know in my area adding a master suite would make it a much easier sell and increase the value substantially. I would definitely talk to a local Realtor to see how much value you'll get in return for your investment. Also, as others have said, $30K seems awfully low for an addition. I would definitely get multiple estimates.
I'm going to take a counter point to what many here have posted, based on my own experiences.
The wife and I had a sudden relocation due to employment a few years ago. In a declining market (Detroit metro), we sunk approximately $20k into a house that was already at the top of that zip code in terms of price.
We knew with 100% certainty that we weren't getting that money back, HOWEVER, we sold our house quick, for full price. I don't believe we could have sold that home at all if it hadn't been "perfect". In other words, a $20k "discount" wouldn't have been as persuasive as a "perfect" house.
We re-did landscaping, painted the entire house, re-carpeted the basement, and spent weeks nit-picking EVERY little detail with the house, so there could only be ONE objection from a potential buyer - the price.
Your potential buyers will think up a number much higher than you for repairs or improvements - flippers know this, and that's how they make their money. New countertops & freshly painted cabinets frequently equate (in a buyer's mind) to a "major" improvement.
Definitely talk to an agent and get some "comps" for 2 bed and 3 bed homes, and if the difference is there, I'd say go for it.
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