2 Bedroom Subject/3 Bedroom Comp

[Charles Cales]

I have a 2 bedroom subject. It is 2 bedrooms and den, (no door , no closet) I cant find any recent, comparable 2 bedrooms. But I have lots of 3 bedrooms, same size, little bigger, little smaller. So I'm bracketed by size. According to the Listing agent, den/bedroom was an option by the builder, and few chose the den. Question: can I use all comparable 3 bedrooms, and adjust a cost a cure, $1000 bucks for door and closet? I'd hate to kill the deal over a little paint and drywall?

 

[CANative]

At first glance this seems like a simple thing. Usually there's not much of an adjustment for bed counts. But the comment from the REALTOR about few choosing the 2 bed + den option may be cause for concern.

Do the 3 bedroom houses have a den? Is this a new house in a new subdivision? If not, look at its sales history and compare it to 3 bedroom homes sold durng that period.

Also, just adding a closet may not make it the same as a 3 bedroom, depending on the floorplan and the location and access of the den. If it's just a room that could have been a bedroom but they left out the closet, I would be inclined to compare it to homes of similar size with 3 bedrooms and not worry about a cost to cure (put in a closet.)

 

[DTB]

At first glance this seems like a simple thing. Usually there's not much of an adjustment for bed counts

In my market a 3bedroom house buyer WILL NOT look at a 2 bedroom house. If there are no 2 bdr comps I think it is definitely a significant adjustment.

 

[Jeff Horton]

There is your answer, it depends on your market. The fact there are no 2 bedrooms comps is an indicator. Look at the market time, was it on the market longer than the comps?

In my market in lower end price range I don't adjust for it. Middle bracket, it's rare but would need an adjustment. High end... never seen it.

So it depends.

 

[warren asher]

In So Cal i've been seeing a lot of developers charge a lot of $$ of the '3rd bedroom' option. Two days ago I asked the sales office what the difference b/w the three bed and the 2 bd + 1 den. She said the den has double doors and no closet. IMO this is just a scheme by the developer to charge for an extra bedroom. I think the utility is the same regardless of single or double doors. And i treat the 2 + 1 as a three bedroom.

Of course, this scenario applies only to new builds. Buyers in older areas do view 2 vs. 3 beds as significantly different.

 

[Tim Hicks (Texas)]

Around here, underwriters will demand at least two sales with only two bedrooms no matter how old they are. Here is a hint. Agents are notorious around here for listing other rooms as third bedrooms to avoid the "two bedroom stigma." If your MLS lists the agents bedroom size look at the sizes of some of their third bedrooms and then the read the agent comments. Some will actually state "den can be used as a third bedroom" or "enclosed patio can be used as a third bedroom". Look for things like 7 X 8 bedroom sizes or 8 X 20 bedroom sizes. I know it may surprise some of you, but agents tend to stretch the truth in their listings. If you see one that appears to really be a two bedroom, call the agent and ask.

 

[George W Dodd]

Charles,

Is the property on public sewerage or is it a septic system?

If a septic system you will want to check with the local heath dept and make sure that the system is approved for a third bedroom.

Otherwise, I'd estimate the cost to cure and apply a factor to represent the market's reaction to having to cure the problem.

Also try to find sales and/or listing of other two bedroom homes even if you have to go back in time 18 months or more, or go farther away to another neighborhood and use this info for a 4th or 5th.

 

[Ultraviolet]

In my area it definitely depends on the submarket. Entry level and/or areas where there are lots of rentals definitely show a preference for 3 bedrooms.

In retirement communities 2 BR/den vs. 3 BR sell for approximately the same price.

I've also observed that the larger the home, the greater the preference for more bedrooms.

Also on "cost to cure" for a closet, is there sufficient room in the den for a closet that would be recessed? Or would it take up significant space in the room and stick out from the wall?

Just some observations from a similar market area!

 

[Workbox]

I'm with the Quack.

 

[Thomas Fiehler]

We built a new house earlier this year and went with a 2 bedroom/den ranch. The cost was actually more than a 3 bedroom. (Wider door to den, extra kitchen cabinets because of no closet). You just need to know the market.