I'm not a Realtor, but I don't think you can say one is better than the other. Some buyers will want 3/1 and others will want 2/2.

We bought a 3-bedroom, 1.5 bath and turned one bedroom into a full bath, so we'd be your buyer for the second scenario.

Of course, it's not going to be worth $ to do the conversion (that is, you won't get your money back) so whatever you have now is not really worth updating (IMHO)

I, personally, like the idea of the bigger closet for resale... if not your self. People seem to want a Master with its own full bath as well; I know I do. If you could manage to put a door thru to the second bedroom AND one to the hall from the other bathroom it would work real nice too.

It really depends on the local demographics and marketplace, but, in my experience, not many buyers want a home with only one bath.

Much of this depends upon the area and the local market. Is this home in a "family" type neighborhood with children? If that was the case I'm sure many would prefer the 3 bedroom, even with 1 bath. Is it an area that appeals to singles or those without children? In that case, the 2 BR/2 BA would have more resale appeal.

Both are limited. Is it possible to do the 2/2 with a den/study that could be used as a guest or nursery? Kind of a 2.5/2?

ismrk,
I wouldn't buy a home without 2 bathrooms.
Sorry.
So, I would make it 2/2.
It's all about the money, and selling with 2 bathrooms, is worth more.

This is just my personal opinion, after living in a 3/2 for 13 years with DH and 2 kids ages 9 and 5.

I would choose a 2/2 over a 3/1, especially if the 2/2 had a family room separate from the living room.

What are your limitations? Sq footage, two story, etc. Check out this site, might get some ideas to make a 3/1.5 or something else.

YOu can search by number of bedrooms, sq footage, etc.

Here is a link that might be useful: House plans

2/2 for sure. One bathroom is a deal breaker for almost everyone these days.

Agreed. 2/2 over a 3/1 any day. 3/1.5 maybe.

2/2 for me also.