We just purchased our first home and are excited to move in soon! We LOVE everything about the space--well, almost. We love everything about it except the bathroom situation; the house is a 4 bed/2 bath (plus powder room downstairs), and both bathroom are pretty outdated (house built in 1971). One bathroom is the 'Master Bath' and is attached to the master room upstairs, which leaves 1 full bath for the remaining upstairs 3 bedrooms. We're planning on having several kids and can't imagine 3-4 of them, plus guests sharing one bathroom, so we'd really like to add another. We also don't love the master bathroom as is--it's pretty small, has no bath-tub (we're both definitely bath people), has old tile and a 1 sink vanity, etc, so our current plan is to use the current 'master bedroom' as the guest room (it's not a huge room, it's currently 15x14) and add a bathroom to another space and turn it into a second master suite.

Right now, our options are as follows:

1.) Merge two bedrooms (upstairs) into a master suite, giving us a 3 bed/3 bath home. This would give us plenty of space in each, but would lower the bedroom count which doesn't leave a great space for guests long-term. It WOULD however, give us a very spacious master suite and add some much needed bathroom space. Pros: spacious suite; cheaper to convert (bathroom would back up to existing bathroom, so I imagine plumbing will be easier and cheaper). Cons: reducing number of bedrooms.

2.) Turn the 'sitting room' downstairs into a master suite. This would give us 5 beds/3 baths, but obviously eliminates part of the living space. The house does have a formal dining room and pretty spacious living room which I think would be more than enough space for us, but most homes in the area do have a sitting room and den, so it might be a drawback if we resell down the road. This space would result in a smaller bedroom and smaller bathroom than option 1, but does up the bedroom count. Pros: more rooms for office/kids/guests, more privacy (on a separate floor from other bedrooms), easy access to laundry room and yard. Cons: less spacious area, slightly more expensive (no other plumbing nearby), noise (sitting room is right by front door and overlooks the street)

3.) Adding on a master suite downstairs. Not a great option for us as it will cost WAY more, and would have to be built behind the kitchen or den (which would block most of our natural light, and be an awkward place for a bedroom). We also have more than enough square footage, it's really just a bathroom we want and not a whole suite!

Which option would you choose? Any pros/cons I'm missing to either? Which would hurt/help resale value more, down the road? We are planning on living in this house for at least 5-10 years (if not longer), so any resale would happen in the distant future but is still good to consider!