How Much Value Does a Home Office Add to Your Home?

by Team HomeServe
3d render of home office working in pandemic days

Working from home on a permanent basis is becoming increasingly common, and while there are a lot of plusses to being able to skip the daily commute, there can also be challenges. A home office conversion gives you a space to work comfortably and without distractions.

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But is it worth the expense in the long term? Would adding a home office increase your home's value? In many cases, it can.

Does an Office Add Value to a Home?

Adding an office to your home could increase the value of your property, but by just how much depends on several factors, including:

  • How many bedrooms the home has
  • How the property compares to others in the area
  • The home's current price

There are also some clear rules about what type of room can be called a bedroom. If you have a room that doesn't meet the standards for an assessor to classify it as a “bedroom,” renovating it so that it can be classified as an office could be a good investment.

Does a Detached Office Add Value to a Home?

A detached office could be a selling point for some buyers, but that depends on what other spaces the property already has. Many houses have formal dining areas or other spaces that the buyer could convert for themselves. However, if the detached office is attractive, well presented and doesn't detract from the backyard, it could hold appeal to a certain kind of buyer.

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What Is the Return on Investment for Adding an Office to Your Home?

It's hard to predict the return on investment for adding a home office because the surge in working from home is a relatively recent trend. According to data from Fixr, the average cost of adding a home office is $3,500, assuming the project involves converting an existing space. Costs can be much higher for building an extension or a new work area.

A 2020 survey from HomeLight predicted that adding a home office can offer an 87% return on investment. Exact returns will vary depending on your location and the other features of your home. It's hard to predict what buyers would be willing to pay for a new home office space, so it's a good idea to consult with a real estate agent to get an idea of the value of similarly equipped properties in your area.

If you're looking for renovation ideas to increase your home's value, smaller things such as updating the front door often offer the best returns. Another home renovation project that often offers good returns is a kitchen remodel because the kitchen is one of the busiest rooms in the average home.

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