how much value does adding a bedroom add

How Much Value Does Adding a Bedroom Add to the Resale Value of Your Home?

A common question among many homeowners is- how much value does adding a bedroom add?

While a bedroom addition does result in an increase in the home’s value, it is difficult to guess the numbers without digging into the details like the location and the demographic. Comparing the standard 2-bedroom vs 3-bedroom resale values might not give you the right picture.

Adding a bedroom to your home involves a lot of cost and time. So, you need to carefully plan out the modification before making the investment.

In this article, we will take an in-depth look at the topic to help you understand better.

By the way, if you’re considering adding a bedroom before selling your home, you’ll want to check out Curbio. This home renovation company specializes in helping home sellers get more money for their home by performing important renovations before they sell. 

Best of all, they don’t charge you anything until your home sells. Learn more by clicking the button below! 

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How Much Does Adding a Bedroom Increase Home Value?

The additional square footage from an extra bedroom will add significant value to the listing price of your home. However, the exact amount of addition will depend on the local housing market and also on some other factors. Listed below are some of the important ones.

  • The impact of the extra bedroom on the layout and overall aesthetics of your home
  • The number of bedrooms common in other houses in your neighborhood
  • The exact need of the buyers

Make sure to design the bedroom as per the requirements in the state building code. Each state has different requirements to legally qualify a space in the home as a bedroom.

attic bedroom

2 Bedroom vs 3 Bedroom Resale Value

In general, 3-bedroom houses have a better resale value than 2-bedroom ones. If most houses in your neighborhood have 2 bedrooms you will have an advantage if your home has 3 bedrooms. 

More bedrooms lead to better utility and more marketability for the house. Adding a bedroom can increase the price of your home from anywhere between $25,000 to $50,000.

But there are some exceptions where this may not be true. This depends on the location and the layout of the home.

For example, a 3-bedroom house in Wheelersburg, Ohio, can cost around $139,000.  But a brick home with 2 bedrooms in Windsor Heights, Iowa can be priced around $143,000.

3 Bedroom vs 4 Bedroom Resale Value

Likewise, the resale value of a 4-bedroom house will be more than that of a 3-bedroom house since it has higher square footage. When done right, the extra bedroom can add as much as 15% to the resale value. The actual value will depend on the specifics of the real estate market in that time period.

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How to Ensure a New Bedroom Addition Adds Value to Your Home

In theory, adding a bedroom to increase the release value of your home makes sense. However, ensure that the renovation meets the needs of the homebuyers.

The Location Must Make Sense

Make sure that the bedroom is added in the right location and that there is adequate space for it. Adding a tiny bedroom in one corner might not appeal to potential buyers.

For example, adding a bedroom on the ground floor can reduce the yard size. But reduced yard size can have a negative impact on the overall marketability of the house.

Consistent Aesthetics

Adding an extra bedroom at the cost of aesthetics is not the right choice. Many homeowners consider adding a bedroom as an extra attachment. But unless it is well-planned, the extension can look odd or cast a shadow on the lawn. While interior mistakes can be covered by home staging, external mistakes are hard to cover up.

Do Not Over Improve

No matter how many modifications are made, some homes may not be worth more than a certain amount. In fact, you may not get a dollar-for-dollar return on the expenditure made for the extra bedroom. 

So, before investing in moving walls for an extra bedroom, think of improvements like remodeling or finishing an attic that will deliver more returns.

Consider Your Location Before Adding Another Bedroom

Before you plan for the extra bedroom, check what the buyers are looking for in your neighborhood. This means understanding the demographics in your location. 

If most residents in the area are families, adding a bedroom makes sense. In case the area is populated mostly by first-time home buyers, adding a storage room or office might be a better idea. 

Experts also suggest taking a look at comparable sales in your location to get an idea about the market outlook in the area. Once you have an idea about how much a buyer is ready to pay for a similar home, you can decide on a budget for the bedroom addition.

What Are My Options for Bedroom Additions?

Adding an extra bedroom can be done by converting the existing space or by readjusting the layout. Here are a few ideas to do it in the best possible manner.

Turning Other Spaces of Your Home Into Bedrooms

One of the easiest ways to add a bedroom to your home is to divide an existing large room. Another way is to convert an attic or a garage into a bedroom to better utilize the space. 

A great way to do this is with the help of Curbio. Curbio is a home renovation company that specializes in helping homeowners renovate areas of their home to prepare the home to sell. Best of all, they don’t charge you a dime until your home sells. 

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Add a Second Story

Adding a second story is a good way to add a bedroom without affecting the ground area. Depending on the square footage required you can plan for a full or partial addition. 

Keep in mind, adding a new roof is technically complex and is one of the most expensive options. Also, before adding another story, you will need to check the zoning regulations in the locality.

Build on a Ground Floor Addition

If there is enough space on the ground floor, utilizing the space for adding a bedroom can be a good option. This can be in the rear extension, a side return extension, or a wraparound extension. 

Make sure to plan out proper access to the extended portion. Additionally, you will need planning permission from the local authority before you proceed with the work.

Average Cost to Add a Bedroom 

For adding a bedroom to the ground floor, the per square feet charges are between $100 to $200. In case the addition is made in the second story, the costs per square foot are between $300 to $500. The total average cost of adding a bedroom can be around $50,000.


Will I get a return on my investment?

How much adding a bedroom increases your home value will depend on your location and the state of the real estate market in the future. While there is no guarantee of a higher resale price, you can expect to recover at least 65% of the costs incurred.

Does the number of bedrooms in a home affect appraisal value?

The higher number of bedrooms tends to increase the appraised value of the property. But the overall layout and location of the house play an important role in determining the value.

How do I know if I should pass on adding another bedroom to my home?

If your purpose is just to upgrade the property and sell, there can be other less expensive ways than adding a bedroom. However, if you are not planning to sell your home immediately, and need the extra space, it is an option worth looking into.

Final Thoughts

To be honest, there is no definite answer to the question- how much value does adding a bedroom add? The resale value of a house depends on many variables.

Before adding a bedroom to your home, consider the costs involved and the chances of getting a return on the investment. It is necessary to understand the target market and make your choice based on the demands.

Curbio can help you by handling all of your bedroom renovations and not charging you a single dime until your home sells! 

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Bill Mulholland

Bill Mulholland is the owner of ARC Relocation, a company that relocates thousands of employees annually, to every state in the United States, and more than 90 foreign countries, for organizations like DHL,, GNC, and the U.S. Government. Bill also owns a real estate brokerage and title company in Virginia.