Value of a Dedicated HT

[Reorx]

Just to be curious,
Has anybody heard or learned of what kind of added value that a dedicated HT gives?

2 examples:
1. You buy a 5 bedroom house for $400,000, and convert 1 bedroom into a dedicated HT...totaling $50k. So now you have a 4bedroom house, with a HT room. You obviously lost money, because you're losing a bedroom...but are you gaining that back when you sold it if you left the equipment? or would the value increase to greater then $400k?

2. You have the same $400k house as #1, but build a dedicated HT in the backyard for $50k. Kinda like a guest house. Would the value of the house increase to $450k or more?

I'm sure this is more of a Realitor question, but figured someone here might know.
My wife and I are buying a house soon, and I was reluctantly ok'd to build a dedicated HT. I am leaning towards doing #2, but with a smaller, cheaper house.

 

[wilkenboy]

The value of homes is often (not always) derived from a screwey $/square feet average of homes selling in your area in the last year. Non square-foot adding upgrades may add to the attraction to the home in the first place, but likely will not substantially increase the sales value.

Plan on losing money in the venture unless you are adding usable square feet. Its like buying a nice car or a boat- its not an investment, its a luxury item you should enjoy.

That said, pre-wiring and room customizations for a HT can have be a double-edged sword.

1) If the individual or couple looking to buy a home wants a dedicated HT, then its a big plus in their attraction to your home, but it may not substantially effect the final sales price unless you plan on leaving your equipment there and rolling it into the sales price.

2) If the individual or couple looking to buy a home does not want a dedicated HT they may view your customizations as a nuisance they would have to modify to make the home "theirs".

Just my subjective experience.

~Josh

 

[avnetguy]

If you go with option 2 and make it a guest house first, HT second (as in the HT stuff can be easily removed and still have a good guest house) then you'd probably gain value. The other ways would most likely be a loss.

Steve

 

[Reorx]

Good Info.

I was already thinking about adding a 1/2 bath and wet bar in the theater. I guess making it a mini kitchen, and a full bath wouldnt be to hard. I could just have it like a studio apartment.

Thanks for the idea. Now i know where I can go stay when the in-laws are in town.

Reorx