Will building an extra bedroom help sell a property?

Hi All,

My father lives in a shack community on the Yorke Peninsula, South Australia. It has 2 bedrooms, open plan living and dinning, new cupboards, nice big shed and overall for a shack, very tidy.

The property sits right on the beach front with lovely sea views. The tide goes out a fair way during the day but it's still a great place to swim at high tide, with fantastic crabbing and fishing. I love it there.

My father wants to sell and move back to the city for health reasons. He has had the property on the market for nearly 2 years but with no real interest. He has dropped his asking price over $100,000 just to get a sale but still he has had no decent bites.

The feed back is that ,although nice, it is a little bit small and being a shack, only having  2 bedrooms is a negative. The economic downturn has effected real estate so this is a contributing factor as well.

So as you can see, he needs to do something different besides keep dropping the price.

I suggested why doesn't he enclose the front portion of the shed in to a room, with a sliding door at the front, thus creating a 3rd bed room. I work in the building industry and could get this done quite cheaply.

Is this a good idea or could any one suggest some other alternatives?

Bear in mind that it is a shack where the population swells in holiday season.

Thanks in Advance