Attics are one of the most neglected pieces of square footage in a home. But, once homeowners realize they can turn that ignored space into a bedroom, they start thinking of all of the possibilities. Unfortunately, most homeowners do not think about the cost versus value when planning an attic conversion. Ignoring these numbers could leave you seeing nothing but red or worse, creating a debt that you may never recover.

What is cost versus value?

Cost versus value, an annual report released by Remodeling Magazine

, compares how much a project will cost a homeowner versus how much value it adds to his or her home. While it might not seem important, this number is crucial. Your home is your investment therefore, if you put money into it, you need to make sure you’re getting money back out of it. If you have enough equity in your home, a loss may not be important. But, if you need to finance your remodeling project, the lender will also look at the cost versus value and if you spend more than you earn, you may have to come up with a large down payment to cover that loss.

What is the cost versus value for an attic bedroom conversion in Denver?

In Denver, a homeowner can expect to pay $47,266 to convert his or her attic space into a bedroom and single bathroom. While this is a considerable cost, homeowners can get back up to $39,113 of costs or 83%. This cost includes connecting plumbing and HVAC to existing systems, extending a stairwell into the attic space, insulating and finishing the walls, adding carpeting, and updating the space to meet all living codes, including adding windows. Compared to the national average, which is 84.3% in return, Denver just barely falls short.

How to decide

If you are adding an attic bedroom so that you can grow into your home, it may be worth the investment. While you do not recoup 100% of the costs, you do recoup over 80%. As home values continue to rise, you may be able to eventually make up 100% of the costs while enjoying your added space. However, if you are adding an attic bedroom with the intention of selling within the next couple of years, you may want to skip the project. Even if home values rise, market comparisons could lower the sale price of your home making you earn back even less than you expected. When deciding whether to convert your attic into a bedroom, contact a professional to help evaluate costs and all that a remodel will involve.