Expert: Karyn Foley - 3/21/2006

Question
I purchased a home 2 years ago.  It is a century home that has been completely gutted and updated except for a few rooms.  I have remodeled the rest of the home except two areas, the walk out basement and the upstairs tandom bedroom.  My question is, currently the house is a three bedroom home the master, and the tandom.  The tandom is two small rooms probably 12ft by 6 and 1/2ft,so they are both quite small.  Sould I remove the wall to make it a two large bedroom house and consider the walk out basement a bedroom?  Or should I keep it a tandom?  My thoughts are to finish the basement into a rec room/bar.  Finished basements are rare in this old city and even more rare when a walk out.  My real estate agent says to knock the wall down, I say keep it and draw the future buyer away from the fact it is two small bedrooms and one big master but draw them to the large finshed basement and rebuilt kitchen, DR, FR.  I think that knocking the wall doen and listing as a 2 BR would scare buyers away.  I hop to sell in one year.

Answer
Dear Dan:
 I apologize for the delay in response, but my computer was down.
 First of all, you should not be making a decision until you are positive you know when you are going to sell.  When the market is really good, no matter what changes  you have made, the property will sell.  If the market is poor or bad, it would be money better spent to buy down your buyer's loan or credit the buyer for the changes you buyer will have to make.
 One thing is for sure, and that is no one can second guess a buyer.  If you put in neutral carpet, the buyer wants something bold.  If you put in wood floors, the buyer is going to tear them up and put down travertine.
And so on.
 One of my questions is what legally constitutes a bedroom in your city/county or state?  If it requires windows that open to the outside and real closets, then you would need to know that before you remodel your basement. Also, those two bedrooms may be too small to be legal. You should make it a point to have permits for any changes you make.  Unpermitted rooms are non rooms in the eyes of a bank's appraiser.
 Also, what is the composite of your particular neighborhood?  Is it a draw for families?  If so, then multiple bedrooms would be an attraction.  If it is a haven for singles and professional couples, then a large basement gym or professional office would be appealing.'
 Take a lot of time and study the market in your area.  What sells the best?  Read the ads and track the prices, comparing the list prices to the sales prices.  Also, get opinions from more than one real estate agent.  Do they feel that basements are rare and thus hot, or are they rare because no body really has a good use for rthem.
 You are right in that two bedrooms are a tough sell, especially for families.
 Maybe you could turn the basement into two legal bedrooms with a jack and jill bathroom, and knock down the wall and make those two small rooms into an at-home office or small exercise room.  Since you do have a family room, think long and hard about putting in another recreational space that may be more valuable being something more important.
 If those two small tandem rooms are by themselves upstairs, then it puts me even in a bigger quandry as to know what to do.
 I would suggest that you invest some of your money and get ideas from an architect who could put into perspective the most that can be, with the least amount of money , for the greater return.
 Please let me know what you decide to do and what is the result.
 Anyway, more slowly and with caution, being fully informed as to expenditures and what the market is forecasted to be.  You said you" hope" to sell in one year.  Until that time is closer, enjoy your home for yourself and take the time to be educated with as much knowledge as you can obtain.
KARYN FOLEY