Does removing a wall between two bedrooms reduce value from an appraisers POV?

[Denita Neuenhaus]

This house was a 4 bedroom home. The owners removed a wall between two of the bedrooms. They left each closet and each entry into the bedroom. In order to convert it back to a 4 bedroom home a buyer would need to put the partition back between the bedrooms, but that's all they would need to do.
Does this affect the value of the home - leaving it as a 3 bedroom with the ability to convert back to a 4 bedroom? If so, how would it affect the value?
The property tax records still say 4 bedroom. It's in SE Florida if that makes a difference.

 

[Charles West]

This house was a 4 bedroom home. The owners removed a wall between two of the bedrooms. They left each closet and each entry into the bedroom. In order to convert it back to a 4 bedroom home a buyer would need to put the partition back between the bedrooms, but that's all they would need to do.
Does this affect the value of the home - leaving it as a 3 bedroom with the ability to convert back to a 4 bedroom? If so, how would it affect the value?
The property tax records still say 4 bedroom. It's in SE Florida if that makes a difference.

So now it is a 3 bedroom floorplan with a sitting area in the master. Pay attention to the wormanship quality of the conversion and whether or not the removed wall was structural and whether or not it was permitted or not. Other than that comment about the flow in the altered floor plan, (is the master now roomier and more functional?) and likely market reaction between a 3 and 4 bedroom home using paired sales and some regression if you have adequate sales numbers. That is about all you can hope to accomplished.

 

[Vermonter]

It's in SE Florida if that makes a difference.

Absolutely does make a difference.

In my market I would never be able to extract an adjustment for 3 vs 4 bedrooms everything else being equal, but I'm not in FL. Hopefully someone local chimes in

 

[Terrel L. Shields]

Does this affect the value of the home - leaving it as a 3 bedroom with the ability to convert back to a 4 bedroom? If so, how would it affect the value?

I doubt the demand for 4 bedroom in Florida is significantly more than 3 bed. That is a speculation, but if it does much more than eliminate the potential "must have 4 bedroom" buyers, then I would think the 3 bedroom buyer fits well with the high percentage of retirees that are buying.

 

[Dublin ohio]

This house was a 4 bedroom home. The owners removed a wall between two of the bedrooms. They left each closet and each entry into the bedroom. In order to convert it back to a 4 bedroom home a buyer would need to put the partition back between the bedrooms, but that's all they would need to do.
Does this affect the value of the home - leaving it as a 3 bedroom with the ability to convert back to a 4 bedroom? If so, how would it affect the value?
The property tax records still say 4 bedroom. It's in SE Florida if that makes a difference.

I would think that you being an agent in the area. You would have more information about the market than any of us. What has been your experience when dealing with buyers. Is there a high demand for 4 bedroom homes. Do buyers prefer 4 bedroom homes. Do buyers reject 3 bedroom homes for 4 bedroom homes.

 

[Dale Floyd]

In many instances, there are other uses of rooms that tend to muddy the waters of the data in our areas. That 4th bedroom shown in a sale on the MLS, may actually be a study, hobby room, den, or something else that is now used as a 4th bedroom. Alternatively, we've also seen a true 4th bedroom, being used as a TV room, den, study, video game room, or something else.

Sometimes, there just isn't sufficient support to adjust for a 4th bedroom due to that reason. I can only speak to the areas we cover, of course,

 

[CGinMN]

It really depends. You have to look at what the market is for each, and also consider how the rest of the home functions. A 4 bedroom home might not make sense if there is only one small living room and/or one bathroom. If there are multiple separate living areas, more than one bathroom, and another bedroom that can serves as the primary bedroom, maybe converting it back would be optimal. The fact that it could be easily converted back, tells me the discount shouldn't be too large.

 

[Denita Neuenhaus]

@ Dublin Ohio, Depending on the neighborhood, 4 bedrooms generally get a higher price. In the original question/post it is two secondary bedrooms that had the wall removed. I was looking for an appraisers view point, sometimes the market has a different reaction than the appraisers do looking at the very same attribute.
In this case the house was built as a true 4 bedroom and not 3 bedrooms with an office as we so frequently see here.

 

[Overimprovement]

It really depends. You have to look at what the market is for each, and also consider how the rest of the home functions. A 4 bedroom home might not make sense if there is only one small living room and/or one bathroom. If there are multiple separate living areas, more than one bathroom, and another bedroom that can serves as the primary bedroom, maybe converting it back would be optimal. The fact that it could be easily converted back, tells me the discount shouldn't be too large.

I would add it can depend on surrounding homes as well. If this is a stock subdivision with all 4BR homes, having one with only 3BR may have a greater impact than if surrounding homes are more heterogeneous. If most buyers in the area have families and need that 4th bedroom, it may come down to market reaction of having to replace the wall, etc. Not a simple thing sometimes--will have electrical work at the least. If permits need pulled, was the demo work permitted? If not, what fines/issues might arise, etc.

We already adjust for GLA, that is a separate adjustment, the bedroom count specifically addresses rooms that directly serve that purpose, without altering or diminishing the functionality of the rest of the home.

As mentioned, flow can come into play. Does each bedroom have its own bathroom? Do you now have one bedroom with two bathrooms?

So short answer, it is likely to have an impact, but my hunch is (for most of my market anyway), the impact would be relatively small.

The other thing to consider is comps--are all area comps 4BR? How far will appraiser have to go to find at least one 4 bedroom comp? Similar neighborhood?

 

[Dublin ohio]

I was looking for an appraisers view point, sometimes the market has a different reaction than the appraisers do looking at the very same attribute

If the data is there showing a reaction. The appraiser should be addressing that data. Appraisers do not have a "reaction" to a feature. They analyze the market reaction.