I quizzed over two dozen homeowners about the best home remodel project they’ve ever undertook. And an overwhelming majority of them were clear that it was indeed a bathroom remodeling.
Surprisingly, this has more to do than aesthetic improvement alone as homeowners suggested their bathroom shower renovation had to do with value addition as well.
In fact, if opinions from real estate experts are any suggestion, a bathroom remodel is by far the best home improvement project for increasing your property’s value.
Now, it is natural for you to wonder how much value does a bathroom remodel add.
But like all things home renovation, there isn’t a straightforward answer. That’s because the exact dollar figure will depend on the scale of remodel, housing market in your area, and the quality of upgrades, to name a few.
Nevertheless, I’ve broken down the entire value addion dynamics of bathroom renovation along with my own insights as a general contractor on Long Island. Also, I’ve explained how you can maximize the return on your investment (ROI) on projects like this.
So, read on and get answers to all your queries.
Does bathroom remodel increase home value?
Before we get into the specifics of bathroom upgrades and the value they add, some of you might still be skeptical if projects liike this can add value.
After all, not every bath upgrade includes luxury addions and some of the renovations also have to do with fucnctional improvements.
For instance, your remodel project might include retiling or faucet replacement. And this could be a result of pre-existing problems like clogged faucets.
But let me tell you that every bathroom remodel carries some ROI, notwithsating the scale and scope of project. Moreover, minor bathroom uprgades usually don’t require permit and are likely to bring more returns on your total investment compared to big-ticket renovations.
Meaning, you can rest assured of resurrns no matter how much you invest and what you upgrade.
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How much ROI does bathroom remodeling carry?
Now that you know a bathroom remodel comes with a surety of ROI, you might well be curious about the expect return.
For those who aren’t aware of the concept, a return on Investment (ROI) is the percentage of the total remodeling cost that you recover while selling your home later on.
Speaking of bathroom remodels, these projects have consistently shown strong ROI compared to all other renovations.
Here’s a breakdown of ROI based on based on bathroom remodling type:
1. Midrange bathroom remodel
If you’re opting for a midrange remodel, the latest market estimates suggest that you can recoup anywhere between 60-67% of your total investment.
2. Upscale bathroom remodel
For higher-end bathroom upgrades, ROI is slightly lower in comparison. That’s because luxury additions cater to a niche market.
So, if you’re moving ahead with luxury addions, except around 50-55% return on investment.
How much value does a bathroom remodel add exactly?
With clarity on total ROI that each remodel type bring, let me now address the elephant in the room, i.e., how much does a bathroom remodel increase home value.
Going by the contemporary real estate figures in NYC, you can expect to increase your home’s resale value by $10,000 to $25,000 out of a well-executed bathroom remodel.
However, the exact dollar figure will depend on the scope and quality of your upgrades.
For instance, let’s say you spend in the range of $15,000 and $18,000 for replacing bathroom tiles, shower handles and faucets, mirrors, curtains, etc.
In this case, you can expect an increased value by up to $10,000. And this is in line with the 60-67% ROI on mid-range upgrades.
At the same time, if you’ve spent about $45,000 to $50,000 adding luxury add-ons like bathtub, gold-plated faucets, jacuzzi, etc., your home’s value will increase by $25,000.
That’s because upscale renovations offer 50-55% ROI, which is slightly lowet in percentage terms but quite significant in terms of total value addition.
Pro tip: Value addition out of bathroom remodel differs from region to region
For those of you who aren’t aware, regional variations play a crucial role in determining the return on investment (ROI) on your bathroom remodel.
So, while national averages provide a general benchmark, the actual value a remodel adds to your home depends significantly on your location.
For instance, in high-cost real estate markets like New York, Los Angeles, and San Francisco, bathroom remodels tend to yield a higher ROI. That’s because buyers in these competitive areas prioritize updated, modern bathrooms and are willing to pay a premium for them.
On the contrary, mid-sized and growing markets such as Austin, Denver, and Charlotte show moderate ROI. Here, although homebuyers expect modern bathrooms, they might not be as aggressive in pricing.
At the same time, in smaller cities and rural areas, ROI might be even lower because home values don’t appreciate as quickly. Meaning a luxury remodel in these markets may not translate into a proportionate increase in home value.
What determines how much value does a bathroom remodel add to your home?
While the above average value hike in your home’s resale price is typical of New York markets, the exact ROI might differ in your case.
For instance, I’ve seen bathroom remodels that went on to increase home value by as much as $50,000. Consequently, some homeowners even saw a mere $5,000 value hike after bath upgrade.
And this might lead you to wonder what is it that determines the total value addition.
To begin with, the total ROI on bathroom remodeling depends on not one but multiple factors including project type, scope, geographic location and more. Also, these factors have their own nuances which further affects the return.
All in all, here are the factors that determine how much value does updating a bathroom add:
1. Scope of your project
If there’s one factor in bathroom remodel that heavily influences the total value enhancement, it is your project’s scope. Herein, the smaller upgrade you carry out, the higher return you can expect vis-a-vis your total investment.
For instance, minor remodeling projects like retiling, fixtures upgrade, faucet replacement, or replacing a vanity offer higher ROI at a lower cost.
Similarly, major remodel like increasing total square footage, installing high-end features like a walk-in shower or soaking tub, plumbing or lighting upgrade, etc., carry comparatively lower ROI. But they can significantly enhance the total value of your home.
2. Preferences of buyers
Yet another factor that determines how much a remodel can increase your home’s value are the buyers’ preferences in your area.
For instance, suburban homebuyers in New York prioritize updated bathrooms over ones with dated tiles and faucets. Meaning, if your home has a bathroom with up-to-date faucets, trendy tiles, latest showers, etc., you can definiely expect an increased resale price.
3. Your geographic location
Often an underdog, your location plays a significant role in how much more you can ask for your home after upgrading the bathrooms. That’s because the ROI is higher in regions with expensive real estate markets.
For instance, if you own a home in New York neiborhoods like Hudson Yards or Carroll Gardens, the ROI on bath upgrade will be higher compared to Tremont or Brownsville.
4. Materials and workmanship
Lastly, the type of materials used and level of professional expertise involved in your remodeling project will also influence total value addition.
You see, high-quality materials and professional workmanship ensure both durability and aesthetics. And this appeals to discerning buyers, which, in turn, leads to better ROI.
What are the bathroom upgrades that add value?
You’ll agree when I say that not all bathroom upgrades yield the same ROI. In fact, there are some improvements that might add little to no value at all.
So, how to select and undertake bathroom upgrades that add value?
Well, to do so, you’ll have to focus on features that appeal to a broader audience and are in tune with the latest trends. And that includes:
A. Functional improvements
There are a few bathroom upgrades that guarantee a value addion, and functional imporvements are one of them.
A remodeling like this involves energy-efficient upgrades like installing low-flow toilets, water-saving showerheads, and LED lighting to lower utility costs. And this appeal a great deal to eco-conscious buyers.
Similarly, you could focus on improving the bathroom’s layout by adding a second sink, increasing storage, or creating more usable space.
B. Aesthetic upgrades
Let’s admit it: Almost all of us predict a property’s value based on how aestheically pleasing it is. And the psychology also applies to a bathroom upgrade and the total value addion it brings about.
Not to mention, aesthetic upgrades also mean lesser time to remodel your bathroom from start to finish.
So, if you remodel your bathroom with modern tiling, neutral paint colors, and sleek fixtures, it will an updated and appealing look. At the same time, you can install a frameless glass shower enclosure and free-standing tubs as these are highly desirable among buyers.
All of these together will work wonders to increase your home’s realse value.
C. Accessibility features
In neighborhoods like Battery Park City where there is a sizeable number of senior residents, homes with accessibility features are hot-sellers and thus higher in value.
This means adding features like grab bars, curbless showers, and wider doorways will make your home more marketable and premium.
Why do bathroom upgrades influence buyer decision to pay more?
I am often asked by homeowners why exactly does a bathroom upgrade yield higher return when selling their home. And I am sure you’d be thinking the same.
You see, to begin with, a remodeled bathroom isn’t just about ROI, it’s also about buyer perception too.
For instance, a beautiful and clean bathroom creates a perception of your home being more luxurious and well-maintained.
Also, it brings a move-in ready factor where buyers prefer homes that don’t require immediate upgrades. And this makes remodeled bathrooms a major selling point.
Not to mention the received value of your home where even minor improvements like modern light fixtures, fresh paint, or stylish mirrors can make your home seem more expensive.
Pro tips to maximize home value addition with bathroom upgrade
So far, you already know how much does remodeling bathroom increase home value and what are the upgrades that bring more value.
However, I am often asked by homeowners if there were ways they could make the most out of this upgrade. And I am sure you’d be curious about the same.
Here are my 4 tips that can help you maximize value addition:
1. Don’t overshoot your budget
I’ve seen uprgades where homeowners spent upward of $20,000 on minor improvements alone. And while it might seem necessary, it isn’t a wise thing to do.
Instead, I suggest you allocate your budget smartly by following this strategy:
- Minor remodels: Allocate in the range of $5,000–$10,000.
- Midrange remodels: Budget $15,000–$25,000 but not more than that.
- Upscale remodels: Spend in the range of $30,000 to $50,000, depending on your project’s scope and budget.
2. Go for high-impact features
High-impact yet low investment features are likely to bring more ROI. And to that end, I suggest you keep the focus on essentials like updated plumbing, energy-efficient fixtures, custom built storage cabinets, and modern tiles.
3. Hire professionals remodelers
One of the reasons why bathroom remodeling doesn’t yield desired value addion is poor workmanship.
On the other end, hiring experienced contractors will ensure quality and compliance, thus increasing the ROI significantly.
4. Keep upgrades consistent to your home’s design
A bathroom remodeling is good only till it aligns with your home’s overall style. For instance, an overly luxurious bath upgrade in a modest home will never yield the desired ROI.
Bonus: Signs you might be over-improving your bathroom
Sign 1. You’re installing a $20,000 bathtub in a $250,000 home
Reason: High-end features won’t provide strong ROI unless they match the neighborhood.
Sign 2. You’re using ultra-luxury materials in a mid-priced market
Reason: Buyers might not be willing to pay extra for things like imported marble or high-end European fixtures.
Frequently asked questions about how much value does a bathroom remodel add
Does a DIY bathroom remodel offer good ROI?
While DIY projects save money, they often risk the absence of professional work. As such, I always suggest hiring experts for better results and higher ROI.
Are luxury upgrades worth the investment?
Luxury upgrades doesn’t not yield the highest ROI unless they cater to the tastes of buyers in your market. Nevertheless, in terms of total value enhancement, these are the best upgrades to undertake.
Is it better to remodel a master bathroom or a guest bathroom?
Master bathrooms typically carry a higher impact your home’s value since buyers prioritize this space.
However, if your guest bathrooms are outdated, upgrading them will also add value.
What is the average cost of a bathroom remodel?
There is no fixed cost of bathroom. That’s because while minor remodels can cost between $5,000–$10,000, midrange remodels go around $15,000–$25,000.
At the same time, upscale projects cost $30,000 or more.
Does adding a bathroom increase home value?
Yes, it does.
As per latest estimates, adding a functional bathroom can incresase your home’s value by at least $5,000.
Also, a new bathroom on the premium end can add over $15,000 in home value.
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Conclusion
As you can see, how much value does a bathroom remodel add to your home depends on a range of factors. And to that end, a project like this all about smart investment and strategic execution.
For intance, focus on high-impact features and contemporary market trends and you can boost your home’s value significantly.
Got more queries about how much value does a bathroom add after remodel or looking to remodel your own bathroom?
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At Creative Design Ceramic and Tile, we are seasoned bathroom remodeling experts with expertise spanning over 38 years. And we’ve got all your remodeling requirements covered on a budget.