Question on Adding Bedrooms

[Cole Britting]

Hi all!

I have a question on adding bedrooms to a property. I am thinking about house hacking, and I would love to try and find a property where I can add a bedroom. If there is no opportunity for this in the main parts of the house, I think the best way is to either convert an unfinished basement, or convert a garage. 

Does adding bedrooms always increase the value of a home? Or would converting a garage into a bedroom decrease the home's value because of the loss of the garage? Does it depend on the market you are in? 

If anybody has some information on this or some other creative ways to add a bedroom please let me know.

Thanks everyone!

[Sean Blomquist]

@Cole Britting typically adding a bedroom doesn't add appraised extra value unless it is a rental property.  The finished sq ft is what adds value, not the fact that it is a bedroom.  The only time that it really gets that extra value other than a rental is if you go from 1 to 2 bedrooms.  

Don't get me wrong, it certainly helps with marketability, but there isn't an appraised adjustment for the fact that it is a bedroom like there is for a bathroom.

Hopefully this helps.