One of the biggest home improvement projects you can do is increase your home’s square footage with a bedroom addition. It also tends to be one of the most expensive. Most homeowners, unfortunately, find that adding a bedroom typically has a lower return on investment (ROI) than many other renovations. Moving to a larger home might make more sense than trying to pay for a bedroom or master suite addition.
There are other improvements that are more likely to increase a home’s resale value. Basic home maintenance projects, according to Remodeling Magazine, will add more value to a home. This would mean replacing worn siding or a leaky roof rather than an expensive kitchen or bathroom remodel.
For instance, the return on a minor kitchen remodel can be around 80%+. Replacing a front or garage door, however, can return over 90%.
Comparing the cost of a room addition to the value it returns depends on a few factors, including:
The rooms that add the most value to your home are your kitchens and bathrooms. Modest changes in these rooms can have a higher return value than doing an upscale remodel.
It is more straightforward to add a bedroom than to add a master suite which includes a bathroom. Master suite additions are becoming more popular, however, since they provide a place of comfort to a home. A bedroom addition, on the other hand, is typically more functional.
Features often included in master suites are:
A master suite provides amenities and extra features that can increase the appeal and value of a home.
Remodeling Magazine does an annual survey of the average cost of the most popular home improvements as well as their return values. Master suites were part of the 2018 survey instead of bedrooms. A basic master suite addition in 2018 had an average cost around was $123,420. These additions typically include:
The return value for this type of addition was 57%, or $69,807. A more upscale master suite addition in 2018 costed an average of $256,229. This might include amenities like:
The average return for the more advance addition was 48%, or $123,797. You can compare this to a mid-range minor kitchen remodel costing an average $21,198 with a return value of 81%, or $17,193.
If you really want another bedroom, save yourself some money by converting or repurposing another space in your home. You can make a functional bedroom addition with a much smaller investment using:
The average cost of converting an attic into a bedroom, according to the National Association of Realtors, is $75,000. The average return value for this is 53%, or $40,000.
There are other things for you to consider if you want to repurpose a space for a bedroom. If you are converting an attic, you need to check that the ceilings are high enough. The floor also needs to be strong enough to bear the weight of a fully functioning bedroom. You might need to reroute the ductwork as well as the stairs. Windows may need to be added or refurbished.
If you are lucky enough to have a basement, they tend to be dark and damp. Both of these need addressing when creating a bedroom addition. Additionally, you will need to hide the existing plumbing, wiring, and ducts, and deal with stair and window issues.
To learn more about renovation projects with great ROIs, give us a call. We would love to help you enjoy your home and be there to help you when it is time to put it up for sale.