At what point does it make sense to steal space from that 4th bedroom to do something else with the square footage?

Or, to rephrase, what's the difference in home value of a 3-bedroom vs. a 4+ bedroom home for the same square footage? I thought it would make sense to see what the difference is, and to break it down by homes size. After doing many CMA's of 3-bedroom vs. 4-bedroom homes, my theory was that it would make little difference for smaller homes, but there would be a threshold in home size after which a 4th bedroom might offer a premium overall. 

I have compiled the following data and presented it BY HOME SIZE. There are two sets of data. The first set compared average sale price for 3-bedroom homes vs. 4+ bedroom homes BY HOME SIZE. The second set shows average price per square foot BY HOME SIZE.  

Limitations

  • Not all square footage is created equal. It really does depend on what you are going to do with the extra space. A buyer may see a lot of value in a master bathroom and a master bedroom that can comfortably accomodate a king-sized bed. A buyer may also see a lot of value in a 2nd-floor laundry room if all of the bedrooms are on that floor. A buyer may not be thrilled with a 4th-bedroom turned custom closet, if adequate closet space is already available.
  • In creating the following charts, I did not have the option to compare 3-bedroom homes with 4-bedroom homes. Therefore, the closest I could do is 3-bedroom homes vs. 4-or-more-bedroom homes. Keep in mind that as the home size increases, we are more likely to be including more homes with 5+ bedrooms in the comparison. Still, I feel that these statistics are useful.

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Comparing average sale prices of 3 vs 4+ bedrooms by home size - Livingston County MI

For homes in 1200-1499 square foot range

For homes in 1500-1749 square foot range

For homes in 1750-1999 square foot range

For homes in 2000-2199 square foot range

For homes in 2200-2399 square foot range

For homes in 2400-2599 square foot range

For homes in 2600-2799 square foot range

For homes in 2800-2999 square foot range

For homes 3000+ square feet

Comparing average selling price per square foot of 3 vs 4+ bedrooms by home size - Livingston County MI

For homes in 1200-1499 square foot range

For homes in 1500-1749 square foot range

For homes in 1750-1999 square foot range

For homes in 2000-2199 square foot range

For homes in 2200-2399 square foot range

For homes in 2400-2599 square foot range

For homes in 2600-2799 square foot range

For homes in 2800-2999 square foot range

For home with 3000+ square feet