Does A Home Office Increase Property Value?
Before the pandemic, home offices were not that common. The only people who had home offices were freelancers and business owners. However, in 2022, more people are working from home than ever. For this reason, the prevalence of home offices has increased by a large margin. Now that remote work is the norm, most people are looking for new homes. Homes that will be able to accommodate their business needs. Home buyers also want long-term solutions when it comes to working from home. That being said, does a home office increase your property value? This is the question we are going to try to answer today.
What Qualifies as a Home Office Space?
When we are talking about a home office, all we are talking about is an extra room in your home that you can use as an office. However, we must make a distinction. Adding a chair and a desk to your bedroom will not turn it into an office. At least not into an office that will add value to your property. For a home office to add any value to your property, it needs to be in a room dedicated just for that. For this reason, we have decided to make a description of three types of home offices.
1. Repurposing Existing Spaces
The first solution, and also the one that will add the least value to your home, is turning an extra room into an office. However, repurposing already existing space is the most cost-effective way of creating a home office. To optimize your work-from-home space, you need to add some pieces to create a functional area out of an empty room, and you have yourself a productive space. This type of home office can be set up for very little money.
If you have an extra guest room that isn’t being used or an empty attic, you can set up your office there. However, as previously stated, repurposing rooms within your home will not significantly increase the value of your home. This is because you are simply rearranging existing space in your home. To make this worthwhile, you need to modify this new space to maximize the value it adds to your home. However, we will go over this in greater detail later.
1. Turning Your Garden Dwelling Into An Office
If you have a barn, shed, or workshop that is not connected to your main house but is on your property, you can convert it into an office. Depending on the type of work you do and what kind of office you need, the modifications you’ll need to make will vary in scope. This type of home office will add value to your home because not many homes in northern Kentucky or Cincinnati have this kind of office.
2. Creating An Extension To Increase Your Property Value
The most expensive modification, but also the one that will increase the value of your property the most, is an extension. With an extension, you are making your home bigger. That in itself is going to increase the value of your home. However, that is not the only reason your home will be worth more. When you make an extension, you have an opportunity to create the perfect office. You will be able to consult professionals and plan how everything will look. This will allow you to accommodate all home office necessities. However, we must also mention that, depending on local restrictions, you may need to contact the appropriate authorities to submit a permission request before carrying out the activity.
How Much Value Will This Add To Your Property?
Now that we’ve discussed what kinds of home offices exist, we’ll discuss how much influence they can have on the value. According to research, you can expect your home’s value to rise by 5-10%. If you plan to convert a garden dwelling into an office, you can expect a 5% increase and a 10% increase if you do an extension. Unfortunately, there is no evidence that repurposing a room will increase the value of your home. In some cases, you can expect a slight increase in value. However, this depends on the type of buyer you get. This is not to say that there is nothing you can do. Certain modifications can add up and increase the value that your home office brings to your home. Some of the modifications that you can add to your home office are:
- A professional desk: These desks are a common sight in the workplace. Open shelves for the monitor and keyboard are a common feature of these components. For added convenience, drawers are built into the base of the desk. Some home office models are more expensive than others, so choose carefully.
- Professional locker space: An office may have several locker types. Freestanding lockers can store files, notebooks, supplies, and other items out of nature. Most of these cabinet spaces have outward-opening doors for easy access. Alternatively, you can use a mobile file cabinet. This design has wheels on both sides of the cabinet, so you can easily mount them on the wall.
- Professional shelve space: With these, you can store any document, your headphones, wireless keyboards, and many other things. Consider how much space you need before you install these, however. People often get carried away and waste too much space on these.
So, does a home office increase your property value? As you can see, it certainly does. However, it is dependent on a variety of factors. Fortunately, you have control over most of these factors. Do you want to repurpose any of your rooms and make significant changes? Or do you want to remodel your home to create a new home office room? It is entirely up to you to determine whether this effort is worthwhile. Hopefully, you now have a better understanding of how a home office can affect the value of your home.