Are you preparing to list your home for sale? It may be wise to consider a bathroom remodel. About 26 percent of homeowners do something to improve their bathrooms before selling their homes. This makes sense, because a more attractive bathroom can attract more buyers. But will you get back the money you invest in your renovating your bathroom? How much does a bathroom remodel increase your home value?
These are not easy questions to answer. Kitchen and bath remodeling is often a good move when trying to attract buyers, and research indicates that remodeling the bathroom will give you the biggest bang for your buck in terms of increasing your home’s resale value. Before you call in a bathroom contractor, however, there are some other factors you should consider.
- Where do you live? Remodeling the bathroom plays better in some parts of the country than others. The ROI for a mid-range bathroom remodel on the West Coast is the highest in the nation, at 87.7 percent, followed by the Southeast, at 73.5 percent. The worst areas for recouping your bathroom renovation investment are the Midwest and the Northeast, where it ranges from 58.8 percent to 59.2 percent. Beyond the region where you live, you’ll need to consider your local housing market. If there is a lot of new construction, an updated bathroom might help you compete. Ask your listing agent what’s selling in your area, or do some research on recent comps on your own.
- Is your bathroom in good repair? A functional bathroom that’s a bit dated may not be worth remodeling. (Don’t want to talk about reasons why they shouldn’t want a remodel.) A bathroom with broken or loose tiles, water damage or mold, and electrical issues will need to be renovated before you list it, because it won’t pass your home inspection. In addition to fixing things that are non-functional, fix things that will look bad on a house tour, like peeling caulk, water stains, dirty grout, or poorly applied paint. Think critically about the layout of the bathroom, because if it’s not working, the bathroom should be remodeled.
- Would your renovation budget be better spent elsewhere? It’s possible that the money you have set aside for a bathroom remodel will make a bigger difference in another part of your house. If you live in an area where bathroom renovation doesn’t bring much of a return on investment, talk to a real estate agent about which home features are really important to buyers in your housing market. (Can we remove this section, again this is sort of persuading people to not remodel)
- What will your proposed renovation actually cost? Bathroom remodels vary widely in cost. It’s estimated that the average midrange upgrade to a bathroom will cost around $19,000, while an upscale remodel could set you back more than $62,000. It’s important to note that the more you spend on an upgrade, the harder it will be to make the money back when you sell the house. If you invest, say, $10,000, a 70 percent ROI will mean an added $7,000 to your home value. However, the average ROI for an upscale remodel is only about 56 percent, which means that if you invest $62,000, you’ll recoup less than $35,000 of that money when you sell. However, if the market in your area is fiercely competitive, you might have to deal with a smaller ROI to stay in the game.
- What level of remodel will bring you the best ROI? There are several different ways you can go with a bathroom renovation. You can do a midrange or upscale remodel, both of which go much deeper than purely cosmetic changes, into changes that make a difference in the bathroom’s function. You might also consider a universal remodel, to improve the bathroom’s accessibility. In some cases, it makes sense to build a bathroom addition, while in other situations, minor upgrades can make a big difference.
- A midrange bathroom remodel uses finishes that are nice but not luxurious. Things like chrome fixtures, ceramic tile floors, and a solid surface counter can make a big difference in a bathroom, and the national average cost runs around $19,000. The ROI on a remodel like this is a solid 70.1 percent.
- An upscale renovation uses higher-end features and more structural changes. It could involve adjustments to the layout, along with finishes like heated floors, stone countertops, frameless shower doors, a freestanding tub, and tiled shower walls with shower niches. This is the kind of bathroom that sets homeowners back about $62,000 and offers an ROI of 56.2 percent.
- A universal design remodel makes the bathroom accessible. Widening the doorway, installing a walk-in shower, a fold-down shower seat, a taller toilet, support bars, and other features that can accommodate a wheelchair will cost an average of around $16,000 and have an ROI of 70.6 percent.
- Adding on a bathroom varies in cost depending on whether it’s upscale or midrange. For a midrange bathroom addition, the national average is nearly $45,000 and the ROI is almost 60 percent. An upscale addition will cost about $84,000, with an ROI close to 55 percent.
- Small improvements can sometimes be a major selling point. Painting or refinishing cabinets, adding new lighting, regrouting worn tile, and updating the hardware and fixtures can make a huge difference in terms of updating a bathroom.
When you’re looking for bathroom remodeling in Arizona, trust the team at Re-Bath & Kitchens®. Having served homeowners in the area since 1978, we’ve got the home design expertise needed to provide a wide range of kitchen and bathroom remodeling services. Our service is exceptional, and we deliver innovative, high-performance products in our four showrooms in Maricopa County and Northern Arizona. Visit one of our spacious showrooms, call us at 480-359-1778, or contact us through our website for more information.