A 3,000-square-foot home with just one bedroom? Remodeling doesn't always help when it's time to sell

Nancy and Thomas James' Dana Point, Calif., home has expansive ocean views, four bedrooms, a wide deck for entertaining, solar paneling - even an elevator.

But until recently, the 3,258-square foot house - now on the market for $2.29 million - lacked something basic. It had just one bedroom closet.

That setup had suited the Jameses just fine. Over the years, the couple tore out closets to repurpose bedrooms they weren't using. Thomas and Nancy James, both chiropractors, weren't focused on whether that could be a stumbling block to a sale someday.

Without closets, though, the rooms could not be counted as bedrooms, prompting their listing agent to observe, "You do realize this is a really expensive one-bedroom home?"

A house that's outside the norm for a neighborhood can hobble the owners when it's time to sell. Some real estate agents and appraisers, however, say many sellers these days feel too much pressure to remodel even standard homes, whether it's because of popular TV shows and flashy home design websites, or because friends or agents recommend it when it's not really needed.

A home for sale by Thom and Nancy James in Dana Point, Calif., on March 5, 2014. The couple renovated the home by adding closets to create more bedrooms, among other upgrades. (Anna Reed/Orange County Register/MCT)

In the case of most homes being readied for sale, "You shouldn't remodel the home," said Mac Mackenzie, an agent at Coldwell Banker Residential Brokerage in Irvine, Calif. "People (looking to sell) are paying too much attention to television, and they're not getting the proper evaluation."

The value of real estate depends on the location, market segment and cycle, said appraiser Steven R. Smith of Redlands, Calif., who has conducted appraisals of homes in the Los Angeles area and throughout the U.S. over his more than 30-year career.

"The exact same (remodeling) money spend in the wrong location or market segment may not be recaptured, while in the right location or market segment it may be more than recaptured," said Smith, who has evaluated such homes as a 249-acre Rancho Mirage, Calif., estate with an 18,400-square-foot main house and its own 19-hole golf course. Software billionaire Larry Ellison snapped it up three years ago for just under $43 million.

Many houses about to go on the market could use clean windows and perhaps carpet and paint. Maybe a new roof and some other repairs.

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A 3,000-square-foot home with just one bedroom? Remodeling doesn't always help when it's time to sell