Bedroom Count: Appraisal And Property Value Impact

The number of bedrooms in a home can have a direct impact on its appraisal value, but this relationship is not always straightforward. While more bedrooms can generally lead to a higher appraisal value, the impact of each additional bedroom tends to diminish. Other factors, such as the square footage of the home, the layout, the presence of closets, and the local market demand, also come into play when determining the appraisal value.

The impact of bedroom count on appraisal value can vary across different markets and property types. In some cases, the difference in value between a one-bedroom and a two-bedroom home can be significant, while the difference between a four-bedroom and a five-bedroom home may be minimal. Additionally, the added value of extra bedrooms can depend on the overall size of the home—a three-bedroom home with a spacious layout may be more valuable than a cramped four-bedroom home.

To complicate things further, the definition of a bedroom can vary. While some sources state that a room must have a minimum floor area of 70 square feet and two exits (typically a door and a window) to qualify as a bedroom, the presence of a closet is not always required. Local market expectations and building codes can also influence whether a room is considered a bedroom.

When determining the appraisal value of a property, professional appraisers consider various factors, including the number of bedrooms, square footage, layout, local market demand, and safety compliance. They also compare the property to similar homes in the area to understand the market value of specific features, such as additional bedrooms.

Number of bedrooms vs. square footage

The number of bedrooms in a house is a significant factor in determining its value. However, it is essential to understand that the relationship between the number of bedrooms and square footage is not always linear. While adding more bedrooms can increase the value of a property, the impact on the appraisal value depends on various factors, including the size of the bedrooms, local market demands, and the overall layout of the house.

Firstly, it is crucial to define what constitutes a bedroom according to appraisal standards. The International Residential Code (IRC) and the American National Standards Institute (ANSI) set specific criteria for a room to be considered a bedroom. A bedroom typically requires two forms of exit, such as a door and a window, with specific dimensions to qualify as an egress window. Additionally, the floor space of a bedroom should be at least 70 square feet, and the room should be at least 7 feet wide in all directions. These standards ensure that a bedroom provides adequate living space and safety for its occupants.

When it comes to the impact of bedroom count on square footage, it is essential to consider the overall layout of the house. For example, let's compare two identical houses in the same neighbourhood with the same square footage. If one house has three bedrooms, and the other has four, the house with four bedrooms will likely have smaller bedrooms or a smaller living room to accommodate the extra bedroom. In this case, the house with three bedrooms may have a higher appraisal value due to its more spacious living areas. Therefore, while the number of bedrooms is a factor, the overall layout and square footage distribution play a crucial role in determining the appraisal value.

The local market demands and expectations also influence the relationship between the number of bedrooms and square footage. In some neighbourhoods, buyers may prioritize larger living spaces over a higher number of bedrooms. For instance, a three-bedroom house with a spacious living room may be more desirable than a four-bedroom house with smaller bedrooms and a cramped living area. On the other hand, in areas with large families or multi-generational households, having more bedrooms, even if they are smaller, may be a higher priority for buyers. Understanding the specific demands and preferences of the target market is essential when evaluating the impact of bedroom count on appraisal value.

Furthermore, it is worth noting that simply adding more bedrooms does not always increase the value of a property. At a certain point, adding an extra bedroom may not provide a significant return on investment. For example, in a neighbourhood where most homes have three or four bedrooms, adding a fifth bedroom may not significantly impact the appraisal value. This is because the additional bedroom may not align with the needs and preferences of the target market, and the cost of constructing the extra bedroom may outweigh the potential increase in value.

In conclusion, while the number of bedrooms can impact the appraisal value of a property, it is essential to consider the interplay between bedroom count and square footage. The layout of the house, local market demands, and the return on investment for adding extra bedrooms are all crucial factors in determining the overall appraisal value. Understanding these dynamics can help homeowners and real estate professionals make informed decisions about renovations or pricing strategies.

Bedroom size

Bedroom Requirements

According to the International Residential Code (IRC) and the American National Standards Institute (ANSI), a bedroom must have a minimum floor area of 70 square feet and be at least 7 feet wide in all directions. In terms of exits, a bedroom typically needs two forms, usually one door and one window. The window should meet specific size requirements for egress, with a minimum opening size of 5.7 square feet, a height of 24 inches, and a width of 20 inches. These size standards apply to all floors, including the basement.

Interestingly, a closet is not a requirement for a bedroom according to the IRC, although local codes and market expectations may differ. For example, older homes may not have closets in the bedrooms, and buyers may not expect them.

Impact on Property Value

The impact of bedroom size on property value can be complex and depend on various factors. Firstly, the number of bedrooms can affect the marketability of a property, with more bedrooms generally being more desirable to buyers. However, there may be a point of diminishing returns, where adding extra bedrooms beyond a certain number may not significantly increase the property's value. The layout of the house also plays a role, as a well-designed 3-bedroom home with a spacious living room may be more valuable than a cramped 4-bedroom home.

The local market and buyer demands are crucial considerations. In some areas, certain bedroom counts may be more popular than others. For example, in Dallas, 2-bedroom, 1-bath homes are less desirable, with buyers preferring 3 or 4-bedroom homes. Additionally, the impact of bedroom size on value can depend on the size of the home. Adding a bedroom to a smaller home may have a greater impact on value than adding one to a larger home.

It's important to note that simply increasing the number of bedrooms may not always boost a property's value. The layout, functionality, and overall square footage are also critical factors. An extra bedroom that results in a tiny living room or a reduction in outdoor space may not be as valuable as expected.

Appraisal Considerations

When appraising a property, professionals consider the local market and comparable sales (comps). They examine similar homes in the neighbourhood with similar bedroom counts and square footage to determine the value. While the number of bedrooms is a factor, the appraisers also look at the overall square footage, as this often has a more significant impact on value.

In conclusion, while bedroom size can influence a property's value, it is just one of many factors that appraisers and buyers consider. The local market, layout, functionality, and overall square footage all play crucial roles in determining a home's worth.

Local buyer demand

• Number of Bedrooms and Local Demand: The impact of an additional bedroom on appraisal value can vary based on local buyer preferences and market dynamics. In some areas, such as Dallas, Texas, there may be higher demand for three or four-bedroom homes due to a shift towards remote work. In such cases, adding a bedroom can significantly increase the appraisal value. However, in other locations, the presence of a smaller buyer pool for larger homes may result in minimal value differences between a four and five-bedroom home.
• Square Footage and Layout: While the number of bedrooms is essential, appraisers and buyers also consider the overall square footage and layout of the home. A three-bedroom home with larger bedrooms and a spacious layout may be more desirable and fetch a higher price than a four-bedroom home with smaller rooms. The distribution of space and the impact on privacy are also factors to consider.
• Comparable Properties: Appraisers often compare properties with similar features in the same neighbourhood to ensure accurate appraisal values. If comparable homes in the area have more bedrooms, adding an extra bedroom may be necessary to remain competitive in the local market.
• Local Market Dynamics: Understanding the local real estate market is vital when assessing the impact of bedrooms on appraisal value. In a seller's market, where demand outpaces supply, the presence of additional bedrooms may not significantly influence the appraisal value. On the other hand, in a buyer's market, where supply exceeds demand, an extra bedroom could be a differentiating factor and positively impact the appraisal.
• Renovation and Conversion Options: When considering adding bedrooms, it's important to evaluate the renovation or conversion options available. Converting existing spaces, building ground-floor additions, or expanding upwards by adding a second story are common options. Each option has different cost implications and may vary in their impact on the appraisal value based on local buyer preferences and market trends.
• Buyer Pool and Demographics: Understanding the demographics and preferences of the local buyer pool is crucial. For example, in areas with a high proportion of families, having enough bedrooms to accommodate children becomes a significant factor in buyer decisions and, consequently, the appraisal value. Similarly, in locations with a predominantly older population or single professionals, the demand for bedrooms may differ.

Layout

• Square Footage and Bedroom Count: The impact of an additional bedroom on a property's value is not solely determined by the number of bedrooms but also by the overall square footage. In some cases, a property with fewer bedrooms but a larger living space may be more valuable than a property with more bedrooms and a smaller layout. It is important to consider the trade-off between bedroom size and the size of other living areas when evaluating the impact of bedroom count on property value.
• Comparable Properties: When determining the value of a property with a specific bedroom count, it is essential to compare it to similar properties with the same number of bedrooms. This allows for a more accurate assessment of the impact of bedroom count on property value. However, it is also important to consider that simply adding a bedroom may not always result in a higher value if the additional space is not utilised effectively or if the layout is awkward.
• Market Expectations: The value of additional bedrooms can vary depending on the local market and buyer expectations. In some cases, having a certain number of bedrooms may be expected or standard for the neighbourhood, and deviating from this norm may not significantly impact the property's value. On the other hand, in areas where larger families are common, having more bedrooms may be a significant selling point and positively impact the appraisal.
• Functionality and Appeal: The layout of the additional bedroom can also influence its perceived value. For example, if the only available space for an extra bedroom is right off the kitchen or accessible only through another bedroom, it may diminish the appeal and value of the property. On the other hand, a well-designed layout that maximises space and functionality can enhance the value of the additional bedroom.
• Overimprovement: While adding bedrooms can increase a property's value, it is important to consider the potential for overimprovement. If the number of bedrooms exceeds what is typical for the neighbourhood or exceeds the demand of the target market, the additional bedrooms may not provide a significant return on investment. In such cases, it may be more prudent to focus on improving the layout and functionality of the existing space rather than adding more bedrooms.

The impact of bedroom count on property appraisals is influenced by various factors, including layout, square footage, comparable properties, market expectations, and functionality. A well-designed layout that maximises space and considers the needs and expectations of the target market can enhance the value of additional bedrooms. However, simply adding bedrooms without considering these factors may not always result in a higher appraisal value. It is essential to consult with local real estate professionals and appraisers to gain a deeper understanding of the specific market and make informed decisions regarding property improvements and their potential impact on value.

Safety compliance

When it comes to the appraisal of a bedroom, safety compliance is a major consideration. The International Residential Code (IRC) outlines the characteristics that must be included in a "habitable room", consisting of the bedroom or "sleeping unit". When designing a space labelled as a "bedroom", builders must adhere to the IRC and their state's building safety requirements.

Two Exits

A bedroom must have two forms of egress, meaning it should be accessible from the house (commonly through a door) and have one other exit (a window or a second door). The most common configuration is one door and one window. A room with only one door and no windows cannot be considered a bedroom.

Window Size

The window should be large enough to allow someone to escape in case of an emergency, with specific dimensions outlined by local building codes. According to the IRC, an exit window should have a minimum opening size of 5.7 square feet, a height of at least 24 inches, and a width of at least 20 inches. These size requirements apply to all floors of a house, including the basement.

Ceiling Height

The IRC requires that a bedroom ceiling be at least 7 feet tall. It is acceptable if some portions of the ceiling are below this level, but at least 50% of the ceiling should be a minimum of 7 feet in height.

Minimum Area and Size

The IRC and the American Nation Standards Institute (ANSI) consider the minimum area and size of a habitable room. The floor space (square footage) must be at least 70 square feet, and the room must not be less than 7 feet in any horizontal direction.

Heating and Ventilation

A bedroom must have proper heating and ventilation to ensure it is comfortable to live in year-round and meets health and safety standards.

By adhering to these safety compliance standards, homeowners can ensure that their bedrooms meet the necessary requirements for appraisal and provide a safe and functional space for occupants.

Frequently asked questions