Mark Cipolletti Knows How to Market His Business
Does a Home Office Add Value to Your Home? Property Value of Home Offices
With more and more people working from home, home offices are becoming a popular feature for many houses. While a dedicated workspace may be a plus, will it entice buyers to make an offer? And how does a home office affect home value when you go to sell?
Does a Home Office Add Value to Your Home?
Typically, a home office adds value to a home and may persuade buyers to make an offer. How much value a home office adds to your house will depend on various factors such as the market, the buyer, and the space itself. According to one report, a bonus room like a home office can add an extra $10,000 to $30,000 to the value of your home.1
Those with this space already should make sure they do some basic pre-listing preparations like painting and decluttering to ensure they get the most money back when they sell. If your home does not have a dedicated office already, adding an office to your home may be on your mind. A home office addition will increase the square footage of your home and subsequently add value, but an addition can be a costly project. Be sure to consider the pros and cons, including the return on investment for a home office, before starting such a project.
Home Offices & The Pandemic
One of the biggest reasons a home office increases home value is because of the increased demand for these spaces. In the past, home offices were sometimes seen as luxury spaces collecting dust, but now they are a necessity for many. Thanks to COVID-19, gone are the days of commuting to the office for many people. Now, people find they just need to roll out of bed and wander across the house to get to their desks.
At the start of the coronavirus pandemic, desks were pushed up against walls in crowded rooms or computer monitors sat on messy dining room tables. Although many thought this setup would only last for a few weeks, working from home continued. Between 2019 and 2021, the number of people who were primarily working from home tripled.2 This new way of working doesn’t appear to be going anywhere either. A survey from January 2022 found that 59% of workers who have jobs that can be remote are working from home all or most of the time.3
The real estate market has taken note of this shift as well. A 2020 survey found that listings mentioning a home office jumped by 10% compared to April of 2019.4 While makeshift office setups may have been okay at first, a lot of buyers are also looking for long-term solutions and houses with home offices. A third of respondents even said that they were somewhat likely to consider moving if they continued to be able to work from home.5
Other Benefits of Home Offices
Not only can home offices increase property value, but also they can offer a tax break for some. People with dedicated office spaces in their homes may qualify for a tax deduction. For example, a simplified deduction for a small home office could reach up to $1,500.6 Of course, tax laws are complicated and can vary depending on your situation and location, so be sure to review these numbers with a professional.
One reason home offices add property value is that they are flex spaces or flexible living spaces. Although you may see the space as a dedicated home office, your buyer might see it as a room for crafting, gaming, painting, a home theatre, or even a spare bedroom. These flex spaces can be extremely valuable because they let the buyer decide what they want to do with the room.
While a home office adds value to a home, there are likely other updates you could make to boost your property value even more. At Curbio, we partner with agents and homeowners to determine the best home improvements before selling to maximize a seller’s profit and get the home off the market faster. Ask your agent about partnering with us or contact us, and we may be able to connect you with one of our existing partner agents to get you started.
- The zebra (2023). 45 bonus room ideas to add value to your home
- United States Census Bureau (2022). The Number of People Primarily Working From Home Tripled Between 2019 and 2021
- Pew Research Center (2022). COVID-19 Pandemic Continues To Reshape Work in America
- Zillow (2020). Office Space Tops the Wishlist for Potential Home Shoppers
- Zillow (2020). More Remote Work Opportunities May Make Suburbs More Desirable
- Nerd Wallet (2023). Home Office Tax Deduction: Rules, Who Qualifies