Can adding a bedroom and bathrooms increase a homes value?

[Austin Ralls]

Can adding a bedroom and bathroom without increasing the square footage of the home still increase its value? Or is the only way to increase its value to add sqft? 

I am planning too do padsplits in my current markets and know the best thing to do is add bedrooms and bathrooms but want to know if this will increase my properties overall value for a higher refi amount or if it won't change anything unless I increase the homes sqft along with adding the bedrooms and bathrooms.