Making bedroom in extra living room +10k ARV? Permits?

[Natalie Schanne]

I'm working on a rehab in a great school district. I am considering converting an existing bonus living room to a bedroom to try to increase the ARV by 5-10k and increase interest in the listing. I think the closet will cost $2500 max. House is currently 3/1 and would be a 4/1. I'm too far along to try to make it a 4/2. I want to build a closet (~8x3) and add a door to an existing open 10x20 symmetrical extra living room area off the mud room & kitchen. Ceilings are about 12' high with fans. Are permits needed to build a closet? (No new electrical). This is in New Jersey. I will call my township but I wanted to know your experiences. Do you think it'll add value to add a technical bedroom, regardless of how they use it? This would be a large 'master' bedroom because the other 3 bedrooms are about 12x10. The main living room/dining area is open to a beautiful kitchen (12x14) and is about 16x10. Total house is about 1200 sf. Most of the similar models have a similar room that's much smaller and have not made it into a bedroom. Do you have any examples where the additional bedroom didn't add any value to the sale price? Thanks for all your insights.