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Will A Home Office Reduce Home Value? (Tips and Tricks)

Discover the Dos and Don'ts of a home office, which options are best for you, and answer the question, "Will a home office increase the value of my home?"

Spacious home office area.

Home office spaces are becoming more prevalent with the increase in remote job availability but before you make the commitment it’s important to know the effects it has on the quality and value of your house. Even if you don’t think you’re going to move, it’s always smart to keep property values in mind and plan for the future. Find out some design ideas for a home office here.

As a general rule, having a home office will never reduce the value of a home. Home offices may even increase the value of any home and are extremely attractive to homebuyers.

There’s more to this than redecorating with a desk and chair, and certain things to consider about the effects of a home office space! That’s enough chit-chat, why don’t we get down to the details?

Does My Home Office Reduce the Value of My Home?

A minimalist home office décor.
A minimalist home office with a black and white décor.

If you are or are planning on working remotely, having a dedicated home office space will double as an investment for your career and consistency, as well as being an investment in your house. Now, transforming a space or room into a dedicated work area or office doesn’t immediately boost your house’s value. In order for you to figure out if and how home offices increase the value of your home, you should first know how property value works.

Here’s the list: property value depends on three main factors.

  1. Location
  2. Quality
  3. Square Footage

This video goes into more detail for those interested in boosting their home value in any way possible.

In this article, however, our main focus will be #3, square footage. Transforming a spare bedroom into a home office won’t necessarily increase the value of your home because it doesn’t add any square footage to the building itself. While it might show potential buyers the versatility of having an extra bedroom, it doesn’t change the sale price or bring in any additional money. If you were to do a renovation to add an extra room to your home, thus increasing the size of your house, your new home office will be an added value to the property.

Now that we’ve covered the bases, it’s time to figure out which option is best for you.

1. Home Addition

A wall for a home office construction
Construction of a wall for an addition to a home office.

As I said before, constructing an extension to your house in order to add a home office is a surefire way to increase the value of your home. You don’t necessarily have to turn any addition into a home office but, for the sake of this conversation, say that’s what you turn it into before listing your home to sell.

The fact that you have a home office addition will benefit you and your prices in a few different ways! The first, which we’ve talked about already, is the additional square footage. According to Rocket Mortgage, the median price in the United States per square foot is around $222.

The second is the ‘quality’ of the addition and the up-to-date materials used in the construction. The newer the appliances, wiring, plumbing, and so on, the more value they have and the more return you’ll get for them.

The third benefit has to do with the possibilities the extra rooms present for home buyers. Although the extension may have been intended to be a home office, the space can be used for almost anything when listed as real estate. Another bedroom, a spare room, a laundry room, and a nursery; are things to label a room as to cater to specific people. For example, giving the option that it could be a nursery would attract a couple looking to start or expand their family.

2. Office Renovation

Space renovation for a home office.
A space that is being renovated to be used as a home office.

Although the increase won’t be as significant as if you were to hire someone to expand the square footage of your household, the investment costs won’t be as expensive, either. Renovating a space to create any kind of room will raise the value of your house because of the quality of the appliances or furniture you plan to sell with the house. An example might be updating the light fixtures or wiring, or even something as simple as a fresh coat of paint before listing your home.

Not sure what renovations in a home office increase the resale value? Check out this list to get some ideas!

  • Install recessed lighting or update fixtures
  • New furniture:
    • Desks
    • Chairs
    • Decorations
  • Painting or redoing the walls
  • Putting in new flooring or carpeting

It’s important no matter which option you go with that you’re sure you’re getting more out of your home than you put into it. Just like with finishing a basement, renovating a bathroom, or adding bedrooms, the amount of money you spend on materials, the people working on the property, and any other paid services are returned to you in the resale value! Compensation is key!

How Big Should a Home Office Be?

A home office in a dark gray hue wall paint design.
A home office in a dark gray hue wall paint and touch of wooden accent design.

When it comes to an addition or bump-out (a less expensive option to add space to your home), you don’t want to limit yourself to a cramped office space. In order for the addition to positively affect your resale price, you should create spaces that have enough room to turn from a home office into a bedroom or something similar in the future when you decide it’s time to move. It isn’t just the square footage that will affect the price of an average home in the long run, but the possibilities it gives any potential buyers.

If you’re renovating a room, or maybe putting walls up in a larger room to create a dedicated workspace, the same concept applies. You might like your office spaces to be nice and cozy but many others might want to fill those rooms with something that they need – and they will pay more than you might have expected to get exactly what they’re wanting.

Still not sure what to do? Don’t worry, someone will have all the answers you need! If you don’t know what buyers find interest in other than more bedrooms, you should contact a local real estate agent to find out what demands are going around on the market. Real estate workers will consistently have up-to-date data on current market trends and might even offer you some special offers in regard to selling your house.