Return On Investment For Bathroom Remodel

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Does The Local Market Show Demand For New Bathrooms

Bathroom Remodel Return on Investment | Soak It Up Series with Matt Plaskoff

Run some recent comps or have your real estate agent run some comps. Is there a lot of new construction in your neighborhood near your target listing price? If youre going to be competing with brand-new homes, a brand-new bathroom may just do the trick.

However, just because you wont get a 100 percent ROI doesnt mean a bathroom remodel wont help your sale in other ways. For example, by having an updated bathroom, you might be attracting buyers who wouldnt have considered your house otherwise.

Do Nearby Homes Show A Return On A Kitchen Renovation

Talk to your real estate agent to determine if the recent comps in your area support a remodeled kitchen. If youre selling on your own, check the comps yourself. Running these numbers can help you figure out your budget and identify how much you realistically should be spending on the remodel.

Heres an example: If homes very similar to yours with similar kitchens are selling for $200,000, and homes with remodeled kitchens are selling for $215,000, you wont want to spend more than $15,000 on your renovation.

If youre in a hot real estate market with many new construction homes, a bigger renovation might be worth it, since youre competing with brand-new kitchens. And if you leave your very dated kitchen as-is, you might attract lower offers.

Updating An Existing Bathroom

An outdated bathroom can typically be easily remodeled within the parameters of the current space. To determine what needs to be done, first consider the practical aspects of remodeling your bathroom. Make sure everything works correctly, with no leaks or damaged areas. If there are any issues, these must be addressed before focusing on cosmetic changes. Plumbing, structural and electrical upgrades can be costly repairs, so being aware of these issues upfront is important. The good news is that if you find a problem and repair it you will significantly increase the value of your home.

The average cost of a new bathroom remodel can vary widely, depending on the age of the home and how much plumbing or electrical work is required. Changing fixtures and adding a backsplash is much less costly than replacing everything, but you can expect to spend at least $3,000 to $12,000 on a basic remodel. The average is just under $18,000, according to a report by Remodeling Magazine, but you may get about 66% of that cost back in the resale value of your home. For an upscale remodel, itll cost around $57,000, according to the same report, but youll recoup around 58% of the cost in resale value.

Where can you see the biggest ROI? New tile, an updated cabinet or fixtures and brighter, more natural lighting will appeal to buyers. Usability and adding a touch of luxury are other factors to consider with remodels that include the following:

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How Much Will It Cost To Remodel My Bathroom

While all bathrooms are different and have unique needs, there is a common price range. The cost to remodel a bathroom can range from $3500 to $6000 depending on the bathrooms size and condition. If you are remodeling a fixer-upper, the cost could be more due to rot or mold in the walls. In order to give you an exact estimate on what it will cost to remodel your bathroom, we will need to see it firsthand. Coastal Kitchen & Bath can come to your home, examine your bathroom, and give you a free quote with no obligation.

Is A Renovated Bathroom The Best Project

Return on Investment (ROI) of Bathroom Remodeling in ...

That depends when considering a renovation most homeowners look at projects with low upfront costs with high returns. By far, the most common house renovations that will guarantee high recoupment percentages are the kitchen and bathroom. Most bathroom renovations typically costs around $3,000 on a mid-sized bathroom. A complete renovation costs around $20,000 while a typical kitchen renovation ranges from $12,633 and $35,118, according to HomeAdvisor.com.

According to Remodeling Magazine’s “Cost vs. Value Report for 2018” says that bathroom renovation projects have one of the highest ROI , depending on the materials used. Bathroom renovation projects are indeed rated high by institutions, mainly due to these two reasons low, upfront cost and high ROI.Every house renovation will never recoup its expenses by 100%, but individual wise decisions can increase the percentage than otherwise would be the case. Here are some do’s to follow in maximizing recoupment percentages:

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Save Yourself From Future Headaches

Avoiding any of the worst home renovation projects listed here will save you from future headaches when the time arrives for you to put your home up for sale.

If youre looking to make a smart investment in your home, improving your garage is a great place to start. Garage Living has the right products and expertise that can help you get a lot more from your garage space.

Schedule your free design consultation with us to get a detailed quote.

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Do A Minimum Remodel For A Maximum Return

Beatrice has many years’ experience as a realtor in California, and her professional view is that a ‘minor bathroom remodel, where you replace the flooring, tile, bathtub and sink vanity’ is the most effective. Although it ‘will set you back about $11,000’, it also has been ‘proven to recoup 100 percent of the price in the sales value.’

There are hardly any home improvements that give you quite the same impressive returns, so if you have the budget for it, then bringing a coherent design based on the latest bathroom ideas is guaranteed to impress buyers.

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Watch: 3 Home Improvements That Pay Off Big Time

The next best-paying renovation on the list: manufactured stone veneer, offering a respectable 92.9% return.

Meanwhilesorry, luxury tub fansthe home improvement project that reaps the worst ROI is the addition of a bathroom, at 56.2% .

Take-home lesson? If youre looking for a general rule of thumb, its that less is more: Lower-cost projects generally reap bigger returns, with four of the five projects that cost less than $5,000 ranking among the top five for money back when you sell.

Check out the best returns for home renovations in the two charts below, including how much youll pay and get back if you sell your home this year.

Reasons Why Buyers Like Renovated Bathrooms

Bathroom Remodeling Investment Advice – Returns on Your Investments

While its certainly important for your bathroom to be aesthetically pleasing for buyers, there are also so many other functional reasons why buyers like to see newly renovated bathrooms.

Energy-Saving

Today, more and more homeowners are trying to be energy-conscious, for money and environmental reasons. When you remodel your bathroom, consider different types of appliances and features that save energy. Even just updating to more modern pieces can often reduce energy waste.

Replacing light fixtures and water heaters can save on electricity and gas bills. Low-flow toilets and shower heads can also help, and be a talking point with buyers.

Water

Mold and mildew can develop behind tile or drywall, in grout or tile seams, and on ceilings. While it might be easy to hide during the tour, an inspector will surely be able to identify potential problems if your ventilation is out of date and your room is prone to mold.

This can cause allergic reactions or other serious respiratory problems. Remodeling provides a chance to start fresh with new sealants with mold-resistant features.

Extra Storage

Buyers are always looking for more hidden storage space, especially in bathrooms, for linens, cleaning supplies, toiletries, and other bathroom items.

See if there is room to build linen or supply storage space into the wall and run the shelves from floor to ceiling.

Modern Style

Leaks & Cracks

Remodeling can stop leaks and cracks before they become a problem and create damage.

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Midrange Bathroom Remodel Roi By Region

Sellers in the Pacific region of the United States, which includes California, Hawaii, Washington, Oregon and Alaska, see the highest average ROI on a midrange bathroom remodel, at 87.7 percent. Their average remodel cost is $21,855, of which $19,378 is recouped.

Following close behind is the South Atlantic, which includes West Virginia, Delaware, Maryland, Virginia, North Carolina, South Carolina, Georgia and Florida. Sellers in the region enjoy an ROI of 73.5 percent, based on an average remodel cost of $17,704 and a recouped cost of $12,982.

The parts of the country with the worst ROI, ranging between 58.8 percent and 59.2 percent, are the East North Central region , the West North Central region and the Middle Atlantic region .

Types Of Bathroom Renovations

But not every bathroom remodel is the same. Normally we measure bathroom updates, and how much value theyll provide, based on their approximate scale.

Check out three categories of standard bathroom updates to see where your remodel fits in:

Standard Updates

  • Midrange: includes materials like ceramic tile floors, a new shower handle, a standard white toilet, and a new vanity counter.
  • Upscale: may include structural changes like expanding or adjusting the layout of the bathroom, heated floors, high-end faucets, stone countertops with double sinks, and tiled shower walls.
  • Universal Design: makes a bathroom wheelchair accessible, with features like a widened doorway, accessible storage, a walk-in shower, and support bars throughout the bathroom.

Each of these types of updates will provide you with a different return on value, depending on the exact project and where you live.

Bathroom Addition

However, if you have a home with only one bathroom, you may find that adding a whole new bathroom provides a better ROI. One of the first things buyers and appraisers will look at is how many bathrooms and bedrooms a home has.

If your home doesnt have enough bathrooms to accommodate the average family and a few guests, you could consider adding another bathroom to increase value.

According to HGTV, buyers look for a master bath, family bath , and half bathroom for guests.

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What Kind Of Bathroom Remodeling Roi Can I Expect

While you can expect significant ROI on bathroom renovations, it can vary according to Zillow. They quote some numbers based on the type of renovation effort and the level of finishes from Remodeling magazines Cost vs. Value Report. Here are the categories of remodels cited:

  • Standard Significant changes are requiring replacement of some items, not just aesthetics like lighting and paint.
  • Midrange Nice but not luxury finishes, like new tile surrounds and floors, chrome fixtures, solid surface counter, standard toilet, and single-lever shower handle.
  • Upscale Think luxury, like heated floors, stone countertops, double sinks, expanded or optimized layout, top-of-the-line lighting and fixtures, rain showerheads, roll-in showers, and freestanding soaker tubs.
  • Universal design With the focus on accessibility and the growing popularity of aging in place homes, universal design is becoming more commonplace and desirable. It can include wider doorways and more room between fixtures, lower vanities with room for a wheelchair, roll-in shower access, a taller toilet, shower seating, and more.
  • Addition Adding a new bathroom can significantly add value to your home, particularly when the bedroom to bathroom ratio is significantly off.

The following ROI numbers are based on national averages.

Standard Remodel

Midrange Remodel

The national average bath remodel ROI is 70.1%. Thats based on an average cost of $19,134, with an average return of $13,422.

Upscale Remodel

Tips On Increasing Your Bathroom Remodel Roi

Guide to Bathroom Remodeling &  Return on Investment

The easiest way to increase your ROI is to decrease your expenses. Try to prioritize what needs to be remodeled first and do your research to find good deals on supplies. However, you shouldnt try to cut corners when it comes to safety and installing things properly. If you try to skip out on costs during the essential parts of the process, youll end up spending more money in the future trying to fix it.

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Consider Changing The Layout

Bathroom layout ideas may well be worth thinking about in small bathrooms. As Beatrice points out, ‘sometimes it takes rearranging to make the most use out of your space.’ You may even be able to keep the existing sanitaryware and fixtures, but avoid trying to DIY this type of project without experience.

Beatrice recommends that ‘hiring a professional to handle the plumbing and electricity if you opt to change the footprint of the bathroom.’

How A Bathroom Remodel Can Appeal To A Large Buyer Pool

The choices are endless when it comes to bathroom remodelslighting, fixtures, floors, vanities and color schemes. A design expert can help you make the choices that will give you the bathroom experience youve always wanted while appealing to buyers in case it comes time to sell.

At Drury Design, we specialize in crafting beautiful bathrooms and would love to help you navigate the exciting world of bathroom remodels. Request a design consultation today.

About Drury Design Kitchen and Bath Studio

Founded by Gail Drury, CMKBD in 1987, Drury Designs Client Focused Design approach integrates design recommendations, materials selection, and construction management into one seamless customer design, project management, and build experience. For kitchen, bath, and home remodeling ideas view Drury Designs design portfolio or stop by the studio at 512 N. Main Street in downtown Glen Ellyn, Illinois.

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Does The Bathroom Already Need Repairs

However, if your bathroom has cracked tile, mold, water damage, structural issues or substandard electrical, youll definitely want to remodel, as most of those issues will come up in a buyers inspection anyway. When selling a home with serious issues, youre going to end up paying for the repairs one way or another by doing the repairs before listing, negotiating with your buyer after a poor inspection report, or by listing at a lower price in consideration of the work that needs to be done.

Fix What Doesnt Work First

Remodeling Projects with the Best Return on Investment

Start by focusing on whatever is going to look bad to a buyer on a home tour or worse on a home inspection report a bad paint job, cracked tiles, peeling caulk, water stains and dirty grout are a few common examples.

Opt for waterproof materials if anything needs to be replaced. Porous materials dont perform well over time, incuding marble, which requires significant maintenance .

If you need ventilation, install a quiet new fan or, even better, a window. A window can let in much-needed natural light in a small space, giving it a whole new look.

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Do Bathroom Renovations Increase Home Value

The short answer is yes. But it truly depends on your personal situation. Its really difficult to know exactly how much a bathroom remodel can increase your homes value, because it depends on outside market factors and the neighborhood you live in.

But, if your bathroom is really out of date, has broken appliances, or obvious wear and tear, remodeling is an easy choice to make.Here are some final things to consider as you

  • Buyers will want to see that a home is well-maintained, so spending some attention on caulking the tub, re-grouting the tile floor, or adding new lighting fixtures can make a big impact.
  • Renovations and/or adding a brand new bathroom will make the house more desirable and therefore more valuable. However, not all renovations are the same, so it depends on what the owner puts into the house as well as the abilities of the contractor who does the job.
  • According to consumerreports.org, a brand new bathroom also helps inspire offers on your house, and small, inexpensive updates to this space could help you fetch 2-3% more for your house.

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How do I know if a RenoFi Loan is right for my project?

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Best Bathroom Renovations With Good Roi

When youre remodeling your bathroom, there are lots of different features and aspects to consider upgrading, and some will provide better ROI than others.

Here are just a few of the features that are worth considering for a bathroom remodel:

Lighting

While it may seem like a minor part of a bathroom remodel, lighting fixtures can affect the overall appearance of the entire space. Dim, outdated lighting can make your bathroom look really drab, even after an expensive makeover.

Consider updating your vanity lighting to make the space pop and give it a more modern look for a small cost.

Ventilation

Theres nothing worse than walking into your bathroom, looking up at the ceiling, and seeing the growth of mold and mildew all over your walls and ceiling. Whats the point of re-doing your shower if its going to be poorly ventilated? Your space will last much longer if you consider good ventilation methods in your renovation plans.

Retiling

Retiling the walls of the shower is one of the more expensive projects, because it requires a lot of attention to detail from a tiling expert. However, good quality, modern tiling can totally change a space and make it look much more sleek, increasing the overall value of your home.

Vanity

Flooring

Several styles of inexpensive vinyl and laminate flooring are waterproof and can be engineered to look like more expensive materials, such as wood or stone.

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How A Bathroom Remodel Can Increase Your Home Value

A bathroom is an essential part of any home, but one that is often overlooked. Updating this space or adding a new bathroom is one of the best ways to add value to your home. You want your bathroom to be both functional and stylish. A bathroom remodel or addition is one way to improve the salability of your home or make it more practical for you and your family.

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