2 Bedroom Vs 3 Bedroom Resale Value: Profitable or Not?

Many people buy a 3 bedroom house in their initial days. If they have one master bedroom with a full bathroom and two other small bedrooms with one full unattached bathroom then After living there for a few months they started thinking to convert the 2 bedrooms by knocking down the mid-wall.

This seems a good idea at the first sight and it is true to some extent, especially for a single person or a retired person but this could be a bad idea if you don’t want to live there forever.

According to the expert, “each bedroom would add up to 15 to 16 percentage increment of the resale value of a home”.

If you want to enlarge the space of your 2 bedroom by taking down the wall, think again and try some cool tricks so that your bedroom looks bigger such as using some light colors on the walls and replacing your bulky large-size furniture with modern and slim ones.

Is it Better To Buy A 2 Or 3 Bedroom Home?

Yes, definitely 3 bedrooms house will give more resale value than 2 bedroom house, but it depends on the need of the buyers. If you want to renovate your old 3 bedroom home and want to convert it into two bedrooms for creating extra space then you can definitely do this.

But would it be worth doing so?

Here the question is…

How Much Value Does Each Bedroom Add?

According to the survey, adding an additional bedroom can increase the resale value by up to 6 to 7%. If your home has 2 bedrooms then converting them into 3 will benefit you around $20000 during resale.

Adding a 3rd BedroomThe resale value increases by 7% up to $20000 (Avg)
The resale value of the 3 bedroom house over the 2 bedroom house.

Some people think that adding more bedrooms will result in more profit but it’s not the case. The resale value of your home also depends on two things:

  • Where is it located?
  • What is its current worth?

But a 2 bedroom room can be beneficial for those people who are single or retired.

Some Pros And Cons of Two Bedroom Home

Everything has some pros and cons. Although a majority of people prefer 3 bedrooms and 2-bathroom homes, still 2 bedrooms home is beneficial for some people in some aspects, those are listed below…


1. Cheap And Cost Effective

Normally it will cost you around $10000 cheaper than a 3-bedroom home. It will be beneficial for those who are either single or retired.

The Home is very limited in space so there are very few majorities of people who are interested in a 2/1 home. As its demand is very specific so the owner keeps its price at a minimum that can easily grab the buyer’s attention.

If you want to renovate your home by altering its 3 bedrooms into a 2 bedroom then its resale value will definitely decrease. But it doesn’t mean you will not get a better return by selling your renovated home.

2. Less Competition / Less Headache

With a 2-bedroom home, you have to face very low competition to win a bid, otherwise, due to huge competition in this sector getting a bid for a home is very difficult.

Buyers usually don’t take much attention to 2-bedroom homes and if you are looking for a 3-bedroom home then there are chances that you will lose the bid easily, but not such a seen here.

3. Worried Free Maintainance

Less room means less space to occupy. It means there is no empty space in your home to maintain. You can use both rooms for different purposes such as for your office or for your guest, etc.


1. Lack Of Extra Space For Future

There is no problem if you are single and have no intention of having children in the future. But if this is the case then you may have to face the problem due to less space in the future.

2. Resale Value is Minimum

Due to less in demand and having very limited buyers, you will face a serious issue of selling your 2 bedroom home.

It also depends on several aspects.

What is Your Resale Period?

Renovating the house is not a bad idea if you want to live there for 5 to 7 years. it is a pretty long time and you must have changed things according to your convenience.

Changing the 2 bedrooms into one benefits in some aspects such as it creates more space to do extra things in the bedroom.

But changes should not be like you can’t revert them when you want to sell your house, because people prefer 3 bedrooms more as compared to 2 bedrooms.

It has been seen that adding one extra bedroom to your house will increase its resale value significantly. This is a very important thing that must be remembered before making any changes to your 3-bedroom house.

The resale value of your home also depends on your renovation.

Some Renovation Ideas That Will Increase The Resale Value Of Your 2 or 3-Bedroom House

If you want to renovate your home then it takes lots of time and money and without proper knowledge, it will not be as beneficial as you are thinking.

Here in this section, I will share some great renovation ideas that will definitely increase the resale value of your house.

1. Adding a Pool in Your House

This is not mandatory if your backyard doesn’t have space but adding a swimming pool can increase the total resale value of a home up to 7 percent.

Adding a poolAverage increment in resale value up to 9.5% and in the dollar up to $18000.
The resale value may vary from city to city.

Example: You will get the higher resale value of your home with a swimming pool if it is located in a Southern country, but this is not the case if your home is located in a western country because in western countries budget buyers want to minimize their expenses and pool added extra load of maintenance cost to their tight budget.

2. Renovated basement

A little bit of improvement in the basement can increase the resale value of your home up to 6% and you will get on an average minimum of $20,000 more resale value to do so.

3. Adding A Full Bathroom

The bathroom is always the center of attraction of your home to new buyers, and adding a full bathroom will give up to 5% of the increment of your home resale value.

A full-size bathroom can add up to $23,000 additionally to your home resale price.

Avoid These 10 Things During The Renovation of Your 2 or 3-Bedroom Home To Get The Best Resale Value

Renovation can definitely enhance the resale value of your home and homeowners invest a huge sum so that they can get a good return from their property but without proper knowledge, it will hurt you in a big manner.

Here I am going to discuss 10 renovation failure ideas that should be avoided.

  1. Many homeowners try to improve the lighting of their homes by buying lavish and costly lighting systems. Always keep in mind that what is in trend today will be outdated after 10 years from today. Keep things as simple as possible.
  2. Try to avoid decorating your home walls with sticky and hard-to-remove wallpapers and textures. Always try to use fresh and neutral colors on the walls because they look good and appeal to home buyers. Some renovation ideas are not only costly but also take time, such as tiles of your home.
  3. Most buyers try to change their floor tiles and think that it will give them more resale value but this idea ended with nothing.
  4. Never ever spend lots of money on the carpet because a majority of home buyers love hardwood floors. One major downside of using carpet on the floor is it gets damaged easily and the color and texture of choosing the carpet is a thing of personal preference and which may lead to devaluation of your home resale price.
  5. Most homeowners make a costly mistake by changing their bedroom into an office. This idea will immediately decrease the resale value of your home by up to 10%. If you don’t have another way other than using your bedroom as a home office then try to arrange things in that way, so that when needed you can get back your bedroom to its early stage.
  6. The closet in your home is very important. People try to remove them to make their bedrooms big or modify them for adding a bathroom but this is not a profitable upgrade for your home. Buyers need a closet in most of the rooms so don’t do this mistake.
  7. Adding a big-size aquarium in your room looks like a very fancy idea but it will not bounce the resale value. Most buyers don’t want to invest in extra stuff, especially for a big-size aquarium that is full of fish. Its maintenance cost is high and no one wants to invest in it. Secondly, this is a subject of personal preference.
  8. Modification of your garage into a gym or other things might not be a future-proof profitable idea. The majority of home buyers need a garage and this type of modification will hurt your home’s resale value.
  9. Everyone wants to see some plants in their backyard at the front of their house. It can also increase the overall resale value of your home if there are the right kind of plants is planted across your home. Always avoid planting messy plants across your home because the continuous leaf fall will distract the mind of home buyers.
  10. Don’t try to do any kind of DIY work in your home by yourself because it is not necessarily what you like and should be liked by others. This would also devaluate the resale value of your house.


If your budget allows trying to buy a 3-bedroom home for sure because it will benefit you in the future when you will sell your home. But if your budget is very limited and you are single, a retired person or your children are not living with you then you will definitely buy a 2-bedroom home.

This would be beneficial if you are going to live there forever.

About The Author

Harry walter

Harry Walter is here, I'm a passionate writer of home guides, backyard, and garage problems, and have been doing this for a couple of years. I love to share simple solutions for your home and backyard problems.

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