The Collective Lending Group explains why a two-bedroom house could be better than a three-bedroom house and vice versa.
Does a three-bedroom house sell faster than a two-bedroom? A real estate agent will likely tell you that it does. While this may be true, there are exceptions. If you’re planning a reno and wondering whether you should downsize the number of bedrooms in your home, here are some things to consider.
Before you make the decision to remove a bedroom, it’s important to really think about how you live in the space. If the kids have moved out and the third bedroom has become nothing but a storage area, do you really need it? On the other hand, if you’re a young family with one child and planning on having another, you’ll need the extra space eventually. Converting a three-bedroom home to a two-bedroom can work, but it has to suit not only your current lifestyle but your future one as well.
I know a family that bought a great three-bedroom fixer-upper in a terrific neighborhood. When they renovated, they decided to make the third bedroom into the biggest bathroom I’ve ever seen. It has everything you could imagine: a huge soaker tub, a glassed-in shower, heated floors and more. Sounds great, right? Sure, but now they have two growing boys who want their own rooms and there aren’t enough to go around. Weighing the pros and cons is an important step before you change the configuration of your house. Just imagine five or 10 years down the road: Will you still be happy with your decision
According to a study by the National Association of Realtors, three bedrooms and two bathrooms is the most saleable configuration for a home as it appeals to the largest segment of the market: families with one or two children living at home. But keep in mind that families are not the only buyers looking for the perfect space; for people who are single or downsizing, a two-bedroom house might be just what they’re after. If you’re hoping to resell your home in the near future, you should take the cost of the renovation versus the value of the home into consideration – your remodel has to make sense for your bottom line.
Investors naturally want the most bang for their buck when they buy a home. In the past, that “bang” has been about how many bedrooms there are, but that’s changing. As a landlord, I’m always aware of how much more I can charge for a home with an extra bedroom, but more and more renters are looking for luxury. A steam room, a beautiful bathroom or a large master with a walk-in closet could be the lure, and snag just as much rent as a third bedroom would. I’ve renovated enough properties to know that renters have different needs, and an upscale two-bedroom property could be the ideal space for lots of people, so don’t let the myth of the third bedroom stand in your way.