How Much is a Bedroom Worth?

How Much is a Bedroom Worth?

June 9, 2020

When it comes to weighing up the increased price a home addition can leverage at sale time against the cost it takes to install it, one of the most head-scratching ones is an additional bedroom. Yes, you will get more value from your home if you can offer an additional bedroom, but how much exactly, and is it worth the effort?

While some home additions are no brainers, like outdoor entertaining space, landscaped garden and decking, an extra bedroom comes with a lot of grey area, specifically around what type of property you have and who your ideal buyer is.

That said, the average increase in price for an extra bedroom sits in at around $50,000 to $80,000  for homes in the $500,000 to $1 million price range. That sounds fantastic until you consider that it will most likely cost between $50, 000 to $100, 000 to add one in at ground level. So at best, you will come out even.

That means that the only real benefit to adding a bedroom is when:

1. You have enough bathrooms to make all those bedrooms comfortable and convenient.

A four-bedroom home with one bathroom just doesn't make sense. Most modern homes have just about one bathroom per bedroom, if not more, which isn't to say you need to match that scale, but you need to be at least close to it for the home to be functional.

2. You have enough space.

If your home is small then adding another small room to it is not going to help boost the value or desirability, you are simply emphasising the crowded rabbit-warren effect. More bedrooms mean more people, so you need to already have a large and spacious living area, and kitchen to accommodate every person.

3. There is no other part of the house in need of renovation or extension.

If you want to add appeal to your home you can look at a wide range of different options for renovations that might be more suitable for your home type or buying demographic.

It could be a better option to add a granny flat at the rear of your property if you have space there, or

• Make a studio
• Install a pool
• Insert a large storage shed/garage
• Install fold-back windows between your lounge or dining area and the garden or decking for an open extended family space or entertaining area.

4. You've done your research.

Before you even start looking at blueprints you must know your buyer. Is your location a hot spot for families? Are there great schools and parklands, or is this more of a favourite for a retiree looking for easy access to shops and public transport? Then again maybe your location is more for the business-minded or bachelors, close to CBD and nightclubs, or students close to universities.

Knowing the target demographic and pinpointing who your ideal buyer is will help you determine if another bedroom is right for you. If all the properties in your neighbourhood are three bedrooms, then adding an extra bedroom will certainly give you an edge over other homes on the market.

5. Consider the costs.

Knowing what you can afford is essential. Make sure you detail a budget that allows you to have enough to cover your investment, considering that you will only pocket a small amount, if any, at your home sale. Get some quotes from reliable builders, keeping in mind cheaper doesn't always guarantee the best value. If an offer seems too low to be true, it probably is, with lots of hidden costs and snags for you to discover as you go. A more expensive quote will usually have everything included upfront and offer peace of mind benefits that are worth the add on in price.

Brick extensions will be more expensive than those made of timber, building up to create a second storey is significantly more expensive than ground level extensions, by well over double.

You will also need to consider any council fees and be sure to stick within the council regulations, which can not only be expensive but also time-consuming.


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