Will it hurt my resale value if I convert my 3/2 into a 2/2 so that I can make a larger kitchen area along with a functional family size dinning area?

Asked by Gspmom3, McAllen, TX Tue May 16, 2017

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58
Lettsinalask…, Home Buyer, Anchorage, AK
Wed May 31, 2017
I would rather have a larger kitchen. The kitchen and appliance selection often will sell the home especially to the woman in the family.
0 votes
Peter and St…, Agent, Rhinebeck, NY
Thu May 25, 2017
In general, yes. also, depends on the total square feet.
0 votes
AJ Hernandez, Mortgage Broker Or Lender, Hialeah, FL
Tue May 23, 2017
Back when loan officers could talk to appraiser I had a similar situation and the appraiser explained it like this. the market will tell you when it comes to these things.

In a particular community of town homes there were two exact models however when originally constructed they gave the buyers the choice, 3 bedrooms or 2 Master suites, other than that the models were exact and based on recent sales the market was dictating that the 2 bedroom models were worth more than the 3 bedroom models as those were actually selling for more logically this did not make sense but that is what the market was saying.

He did say that just months before the 3 bed models were selling for more so it could be just a random occurrence and that it could change over time.

He also explained that in cases like these the focus more on the square footage as to put up or take down a wall is relatively inexpensive however adding square feet to a home could be quite expensive.

Think of it this way what is more valuable a 2 bedroom with 1,500 sq. ft. or a 3 bedroom with 1,200 sq ft. I guess the answer depends on who you talk to but generally the larger the house the more valuable.

Also don't forget to check with your local permit office as adding/removing a wall could require permits and/or in some cases it may be more work than anticipated. Talk to a GC before deciding.

I am NOT a realtor or GC, I currently only offer loans in Florida so make sure to speak to an expert in your area.

Hope this helps, God Bless. Psalm 20:4
0 votes
Leet, Home Buyer, North Royalton, OH
Sat May 20, 2017
I'd rather have a larger kitchen. While looking at homes, I consider combining two small bedrooms to make one large bedroom room. There are plenty of homes out there with more bedrooms and a small kitchen so I'd say go ahead, be different and go for the wow factor.
1 vote
Shannonbrook…, Home Buyer, Moultonborough, NH
Sat May 20, 2017
Hi Gspmom3.

Reading the other responses to this question, I find their answers rather absolute. For yourself, think for just a minute, would you prefer a larger kitchen and one less bedroom? If the answer is yes, then right there is an indication that someone else would prefer that as well. That said, the next question is how would that change affect the price of the property. The answer isn't so clear cut. My expectation, is that the largest percentage of the potential buyers for that property, are more focused on the number of bedrooms than the size of the kitchen. And, that may be well reflected in any appraiser's opinion required to obtain a loan at the price you were to ask. But, you may just find that rare person/couple/family, that would prefer the larger kitchen modification. But, most likely, you will be reducing the number of people interested in purchasing your home. More people want a 3 bedroom than a 2 bedroom home.

From the wording of your question, I have deduced that what you have now is a non functional dining area. If the house is unusual in that it really has a non functional kitchen, and no dining area, you may need to give up the bedroom to solve extreme functional obsolescence. In this case, the change would actually improve the marketability of the property.

Aside from resolving interest restricting functional obsolescence, it is usually better to have the third bedroom.

Then, there is the negative effect of many projects on net resale value. Here is the question you need to ask. If You were to take the current market value of the property as is, and add to it the cost to do the work you would like to expand and renovate the kitchen, and make a dining area, how much more would those two be together than what you could actually sell the home for?

Depending on the scale of work, the appropriateness, and the cost, you could find yourself in a 50 to 70% gain bracket. Meaning, that for every dollar you spend in the improvements, you would only gain 50 to 70 cents in resale value. For a loss of 30 to 50% in the money spent to make the changes. If you are truly solving a major functional obsolescence problem, you may get it all back and then some. But generally, this is not how these kinds of projects work out.

I hope I gave you some things to think about.

All my best,

Steve Barbershores
7 votes
MNreno, Home Buyer, Saint Paul, MN
Fri May 19, 2017
Why not just move the kitchen table into the bedroom and refer to it as your formal dining room.
2 votes
Faithbrig, Home Buyer, Keller, TX
Fri May 19, 2017
The sellers of our last home had converted their third bedroom into a music room to accommodate their small grand piano. Before we bought the house they converted it back to a three bedroom two bath home. We would not have bought it otherwise. Hope that helps. :)
2 votes
Jeffhudec13, Home Buyer, Sioux Falls, SD
Fri May 19, 2017
A 3/2 is better than than a 2/2. Instead of losing a bedroom, remodel the kitchen. This will now be a win win for the buyer, but must be done professionally.
5 votes
Edge.kathy, Home Buyer, New York, NY
Fri May 19, 2017
3/2 is the only way to go...
Also in my area, a first floor master suite is preferred.
0 votes
42jeanne1204, Home Buyer, Saint Charles, MO
Fri May 19, 2017
Yes. This day and age people are having smaller families and are wanting larger 'public rooms'.
1 vote
Annarebroker, Home Buyer, Olympia, WA
Fri May 19, 2017
As a Realtor in Washington, I will tell you ....DON'T DO IT! Two bedroom properties just don't appreciate like a 3 bedroom and will be harder to sell in the future. Better to pretty up the kitchen as best you can and just go buy a another home with a bigger one.
6 votes
j swanstrom, Agent, Fort Collins, CO
Thu May 18, 2017
Depends somewhat on the market and the neighborhood you are in but in general a 3/2 home will be worth more then 2/2 with a bigger kitchen.
2 votes
Hdouglasc777, Home Buyer, New York, NY
Thu May 18, 2017
Depends on the size of the kitchen. If you have a kitchen you can't turn around in or even cook in with a small, small refrigerator, I would prefer to have a kitchen I can use. Depends on what your working with.
2 votes
Skynb789, Home Buyer, New York, NY
Thu May 18, 2017
Yes, 3 bedrooms are always needed, esp with home offices & craft rooms.
Look for other spaces to do double pantry for space.
3 votes
Richard Stud…, Home Buyer, Blairsville, GA
Thu May 18, 2017
YES, MOST PEOPLE WANT AT LEAST A 3/2 TYPE HOME.
2 votes
Bdosher, Home Buyer, Cathedral City, CA
Thu May 18, 2017
I knew a guy that took out a 4th bedroom for a bigger living room ( he had a concert Grand Piano) but that combo is fine, just not 2 bedrooms.
Even my 80ish neighbors thinking they might want to down size to a mobile home park, told me the only way they would do it is if it has 3 bedrooms
1 vote
Monika Thomas, Agent, San Francisco, CA
Thu May 18, 2017
What I hear from families is that 2/2's are simply not practical. They would much rather have a three bedroom than a two bedroom. Also adding a bedroom easily adds value to a house as it's being appraised while a larger kitchen won't have the same dollar-for-dollar impact. It's one thing to take out storage or a utility room for a bigger kitchen, but taking out the 3rd bedroom will likely hurt your bottom line - and then you've already paid for the construction! You can do the work for yourself and how you want to use the home, but if you're doing it for the resale value, upgrade the kitchen without taking out a usable bedroom.
8 votes
Stevemschmitt, Home Buyer, New York, NY
Thu May 18, 2017
I think not I converted my 3/1 to a 2/2 and every single potential buyer that's toured made an offer.
3 votes
Hi Steve Schmidtt, that is very interesting. I think it has to do with what you do with the space. A 2/2, and a 3/2, are both vastly superior to a 3/1. Nobody wants to share their bathroom with their kids or a guest. So, a 3/1 actually has a significant functional obsolescence attached to it. What did you do with the space not consumed in the second bathroom?
Flag Sat May 20, 2017
The second bathroon is what made it a better buy. Losing a bedroom for kitchen space, nope. It would be better to combine the dining area with the kitchen, make it an open area using an island for eating. Gives you a larger kitchen, and more people enjoy the ambiance since so few people actually sit down in a dining room any longer. I had a 3/2 and used the dining room when we had company for the holidays...three or four times a year. The rest of the time we ate in the kitchen or in the living room. I wanted to turn it into a fitness room to get more use out of it. Bottom line, each bedroom adds a minimum of 10 grand to the value of the home. Kichen upgrade with all the bells and whistles adds about 6 grand.
Flag Thu May 18, 2017
Beterri, Home Buyer, Midland, TX
Thu May 18, 2017
Yes it would. 3/2 houses are much easier to find and purchase on the market than 2/2.

If you had a 4/2, then that may be a different story.
1 vote
gwark1, Home Buyer, Waterville, ME
Thu May 18, 2017
Yes. It will hurt the resale value of the home. Sell the possibility of an expanded kitchen, but never lower the room count.
2 votes
shelli jones, Other Pro, Central, IN
Thu May 18, 2017
If you are in an area where three bedroom and two bath homes dominate the market, then removing one of the bedrooms would likely be a deterrent. If you are in an area where many of the homes are two bedroom homes and sales prices do not indicate that a three bedroom home sells higher, then it would likely not be an issue. However, typically it is not a recommendation in the real estate profession under any circumstance. It is very dependent upon what is the most common type of home in your area. Being the Lone Ranger in a neighborhood is usually not a good thing.
6 votes
I agree. I would also add that in some cases it depends on the size of the room. In the DC market old houses often have small bedrooms. Combining two rooms for larger rooms has become quite common and has not had a negative affect on value.
Flag Thu May 18, 2017
G. Grube, Home Buyer, Clifford Township, PA
Thu May 18, 2017
My Real Estate Broker told me that anything that diminishes the room count lowers the value of the house.
3 votes
Gemini6551, Home Buyer, Delray Beach, FL
Thu May 18, 2017
I think it depends on your demographics
If you are in an over 55 community I don't think it will hurt , all you're losing is another Spare room and a larger kitchen would be welcomed
However if it is in an all age community you will limit yourself in resale to small families which will always be looking for 3 and up bedrooms
13 votes
Laura, Home Buyer, Flagstaff, AZ
Thu May 18, 2017
I'm afraid that is definitely a yes. If you had a fourth bedroom, you might consider it. Most buyers prefer a minimum of three bedrooms.
9 votes
Pjimenez_ema…, Home Buyer, Crescent City, FL
Thu May 18, 2017
Depends on the area you are and t whom you are marketing. If your average target buyer is a couple or a single person with no children, buying their first home, the larger kitchen is more appealing.
6 votes
Lori Williams, Agent, Charlotte, NC
Thu May 18, 2017
Two bedroom homes are harder to sell than 3. Most people want 3 or more so your buyer pool will be smaller when you are ready to sell
7 votes
Depends on the demographics of the community
Flag Thu May 18, 2017
Nick_preci, Home Buyer, Bridgeport, CT
Thu May 18, 2017
Will my home value go up or down if i convert from a 5 bedroom 2.5 bath to a 4 bedroom 3 bath by combining 2 smaller bedrooms into a master bed/ master bath walk-in shower, and adding a shower to a .5 bath? Overall SQ FT is 2700
5 votes
Art Welch, Agent, Buckeye, AZ
Thu May 18, 2017
It will kill it, figure out a way to make the kitchen space work, or add on. As you are in Texas this could lower your value as much as 15%
3 votes
That answer would be similar for the market in Nashville TN. However, the house 2/2 would still here no problem except at lower value than the 3/2 with same square footage
Flag Fri May 19, 2017
Frances Grim…, Home Buyer, 94132
Thu May 18, 2017
If you plan to live in the house a long time, whatever is trendy in kitchens now will be outdated by the time you move anyway. Don't expect open floor plans or huge high-end kitchens to last any longer than any other trend. Also over time the remodel will not look new anymore, your floor tile will get a bit dinged and so on. But if you want a high-end kitchen, or if your kitchen is just too cramped for you to cook in, why not?
2 votes
Porcelain tile absolutely cracks and chips over time. My husband and I just sold a house with very cracked bathroom tile and chipped kitchen tile (and we had put in the kitchen tile). Porcelain does not pit like stone does, but it cracks.
Flag Thu May 18, 2017
Solve the problem of dinged tile and go with porcelain tile. I does not crack or chip. It may cost a little more than ceramic but it will hold up for ever and look much better in the long run.
Flag Thu May 18, 2017
Phillip, , Dallas, TX
Thu May 18, 2017
This depends on your neighborhood. The "average" house is a 3 Bedroom, 2 Bath, with a 2 Car Garage. If your neighborhood has a lot of 2 Bedroom homes, you may be okay to lose a bedroom, but if most of the homes have 3 bedrooms, I would not recommend getting rid of one to enlarge your kitchen.
4 votes
brianlockwoo…, Home Buyer, Palm Springs, CA
Thu May 18, 2017
If you can't expand the footprint to add a third bedroom/den/office elsewhere, converting your 3/2 to a 2/2 to expand the kitchen will absolutely reduce the number of people interested in buying your home which will lengthen the time it takes to sell and may well reduce its value. Families need the third bedroom. Couples need an office or den or just to get some "away" time. Better to take over a dining room, if there is one, to expand the kitchen. Fewer people find value in a formal dining room today--it's the open floor plan people are buying.
2 votes
BBrown, Home Owner, San Francisco, CA
Thu May 18, 2017
It depends on your neighborhood and your target market for potential buyers. If it's in an urban city location with professionals or singles as your target buyer, then as long as you reno the new kitchen high end, the trade off should wash.
If it's in the suburbs however, your target buyers would lean more toward families and loss of that 3rd bedroom may hurt you.
More important is what your goals are. If you are flipping this home for immediate resale, then your question is more important than if you're just contemplating the down-the-road what if's.
If this is your residence that you plan on staying in for at least 5-10 years, and YOU want a larger kitchen/dining area for your self, then I'd say to absolutely do what makes you happy cause you're the one who's living there.
In 5-10 years if and when you do sell, either you or the new owners will probably need to renovate again anyway.
Despite all general advice about having to have a tub in every bathroom, we got rid of our master bath tub and replaced with a walk in shower (too small a bathroom for both).
We also got rid of our upstairs laundry room and turned it into a master bedroom walk in closet. I moved the washer and dryer down to the garage and this too, is against all general advice.
Both those decisions are ones I have never regretted.
16 votes
lauriesurla, Home Buyer, 39401
Thu May 18, 2017
With the cost of kitchen remodels being high, I would consider expanding the exterior wall, if possible, to enlarge the kitchen, and be able to retain all 3 bedrooms, thereby truly bringing up the value. But do a market analysis first, regardless of the direction you decide to go.
8 votes
I agree!!!
Flag Thu May 18, 2017
Kim, Home Buyer, New York, NY
Thu May 18, 2017
Yes it will. A bigger kitchen is nicer and better but a smaller one won't necessarily lose a sale, whereas a home with only 2 bedrooms will absolutely lose a sale.
5 votes
Kimberly, Home Buyer, Palm Desert, CA
Thu May 18, 2017
The answer to your question is based on the comps of the area. For example, what is a typical home in your immediate area offering/selling? Then you will know if this would be a good move for resell or not.
0 votes
Mary Phillips, Home Buyer, Tucson, AZ
Thu May 18, 2017
Nice timing on this one. We found a retirement home but it has a closet kitchen, literally. I've never seen a smaller kitchen. So we talked about making the 3rd bedroom into a dining room, then expanding the kitchen into the current nice sized dining room. From the answers here, I think we'll pass on the home and look for a home with 3 bedrooms and a large existing kitchen.
3 votes
Tina Hoffman…, Agent, Manalapan, NJ
Thu May 18, 2017
Hi,
I think it will hurt resale value, but if you are planning to live in this home for many more years, enjoy your home the way you want.
8 votes
Yes, Tina is right on.Make it right for you.Let the next buyers convert it back to a three bedroom. Area,Area,Area is what sells.
Flag Thu May 18, 2017
Gloria.j.mar…, Home Buyer, Downey, CA
Thu May 18, 2017
NO, homebuyers are looking for more bedrooms, however a decent size kitchen is also valuable.
1 vote
Tjabraham, Home Buyer, Naples, FL
Thu May 18, 2017
I think a gorgeous kitchen will sell, providing your home has potential for a finished basement?
1 vote
We have 2 master bedrooms, nice baths and a finished basement perfect for us in our 50's who raised 2 granddaughters who are now 6 and 7 and if a guest stays the powder room which is 7x7 is a!t the top of the stairs. Kitchen is huge no dining room. Dining rooms are over
Flag Thu May 18, 2017
Taybar_acres, Home Buyer, Tucson, AZ
Thu May 18, 2017
Typically the answer is yes. More bedrooms adds value. If you live in an area with a lot of retirees, it may not hurt resale as much. If you live in a family neighborhood I would advise against losing the bedroom. Check with a designer to try and reconfigure your rooms to add viable space. Space saving cabinets and pullouts as well as space for storage under stairs etc.
3 votes
For real! Dining rooms are obsolete.. Powder rooms are on the rise!
Flag Sun May 28, 2017
I agree!! Depends on the area and size of the house. Some areas/neighborhoods. it may make a difference/ other areas not so much. If it is a retirment area you would be ok. If it is growoing family it would hurt.
Flag Thu May 18, 2017
Can545, Home Buyer, Cincinnati, OH
Thu May 18, 2017
Only if the bedroom is so small and insignificant that it makes sense to get rid of it. But a 3/2 will sell for more than a 2/2 any day.
3 votes
Martingotch, Home Buyer, New York, NY
Thu May 18, 2017
How about using a smaller bedroom of a 4/2 for kitchen expansion (I already unloaded the teenager)
0 votes
Again, it depends on your neighborhood/target market, but it makes sense, because a 4/2 is short on bathrooms, which will have a negative effect anyway, for those buyers actually looking for a 4 bedroom. A 3/2 with a nice kitchen has better resale value than a 4/2 with a tiny, outdated kitchen.
Flag Thu May 18, 2017
Kaminski.k, Home Buyer, South Pasadena, FL
Thu May 18, 2017
Can you keep all three but make one bedroom smaller or make the kitchen remodel a little smaller? How many people use their dining-rooms enough to justify sacrificing a bedroom? Having three bedrooms is a great selling point if you plan on selling your home in the future.
2 votes
Phmills, Home Buyer, New York, NY
Thu May 18, 2017
Yes, anyone who only needs 2 bedrooms probably doesn't need a family sized dining area.
3 votes
I disagree. We have no kids and would be ok with 2 bedrooms as long as they have ample closets. I like to cook & I'd rather have a great kitchen. But I agree that it depends on whether there's a formal diningroom; priority would be expanding into that.
Flag Thu May 18, 2017
Rvillanova1, Home Buyer, Lincoln, RI
Thu May 18, 2017
No.......3 bed 2 baths needed for any resale....Sell the house and buy another rather than go through and expense and end up with smaller rooms and resale value will be none
2 votes
Laura, Home Buyer, Seattle, WA
Thu May 18, 2017
It will probably negatively impact your resale value. The exception would be if the kitchen/dining area is so small that all you have is a "counter top" space to eat at and no room for a table. If that's the case then I would enlarge the kitchen/dining area.

I have a 3 bedroom house with a small dining area (medium sized kitchen) and I use one of the bedrooms as a formal dining room when I entertain which can easily be converted back to a bedroom when I sell.
4 votes
Very wise.
Flag Thu May 18, 2017
MNreno, Home Buyer, Saint Paul, MN
Thu May 18, 2017
This is a great way to unload that lazy teenager who stays in his bedroom playing video games all day. Tell him you're turning his bedroom into kitchen space and he needs to move out asap.
7 votes
HA! Father of a large family told me that when the kids are out..move to a one bedroom house, so that they can't come back (& move in)..he had a big brood, so he was not only wise, but had a good sense of humor.
Flag Thu May 18, 2017
Judith Weins…, Home Seller, Duncansville, PA
Thu May 18, 2017
It would depend on the Buyers needs.
1 vote
Vee, Home Buyer, Port Saint Lucie, FL
Thu May 18, 2017
Bedrooms value much, much higher if the single family home is in a community where families reside but if you are in an adult only community then a larger, top end kitchen could really attract.
9 votes
Jesu49, Home Buyer, Beaumont, TX
Thu May 18, 2017
No, No, No. 3/2 is much more desirable. Even if you get a couple, they will want an office and a guest room. They can manage in a smaller kitchen and can use just a nook for meals. A family with children will want at least 3 bedrooms. If you update your kitchen and bathrooms, then your resale will be easier, but keep that third bedroom. There is a buyer for every house. Best of luck to you.
5 votes
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