Just curious -- how much is a bedroom worth?

[Karen M.]

We have an interesting situation where both properties on either side of our house are selling.  (We are honestly very nice neighbors, really!!!)

Our 80 year old neighbors moved to a senior apartment and sold to a nice family.  Our other neighbor just sent off her youngest to college and is now a single empty nester and is downsizing also. 

Both of these homes are 3 bedrooms.  Our home is 4 bedrooms.  I am curious about the value of our home based upon what will be the "comps" of our two neighbors' homes.   

It's really not a big deal, because we plan to stay here for many more years, but I am curious about the rough value of our home.  Thanks!!  

[Jon Holdman]

The size difference is more important than the fact its a bedroom.  A four bed house the same size as a three bed house will get about the same price.  Appraisers use an adjustment factor based on size.  Its typically a third to a half of the $/sq.ft. selling price.  Chopping space into a bunch of small bedrooms, for instance, won't add any value and at some point will hurt value.  Most people don't want a "bunkhouse".

Also keep in mind ground floor square footage is more valuable than second floor, and basement is worth the least of all.  A ranch without a basement of a given size will be quite a bit higher in value than a two story of the same finished size, but with the footage split between the ground and second floor.  And both will be higher valued than a ranch with basement with the footage split between the ground floor and basement.