Will converting my formal dining to a bedroom increase the house value?

I am thinking of replacing my formal dining area with a bedroom. We have a 3 bed 2 bath house with a big family dining room and an open kitchen, dining and family room plan. In addition we also have a big rectangular living room with formal dining room. The formal dining space is a wasted space as far as we are concerned and is about 11 X 11. We were thinking of converting it into a 4th bedroom which could be used as a guest bedroom or an office. I was wondering if this would make any difference to the price of the house. When we were buying a house, we did not care for a formal dining but do people care for it anymore..especially if you have a spacious family dining area?

BTW, I live in Bay Area, CA

Bedroom must not have another room attached to it, unless it is a bath,and must also include a closet. If Kitchen has entrance to that room then it is not a bedroom, but could be office.

If it doesn't have a window, a closet, and a door, it's not a bedroom.

However, if you convert it, and you don't have a formal dining area or other "real" dining...it can actually decrease your value.

I would say --it depends. Why not list it as a 'bonus room'? The problem I'll bet you have with the fourth bedroom idea is that there is not a closet in the room and therefore it will not be considered a bedroom. My guess is that it won't make much difference what you call it.

Check with reputable Realtors in your area about the pros and cons because the answer will change depending on your area.`