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Average Return On Investment For Bathroom Remodels



If you’ve been thinking about upgrading your bathroom, there’s more than improved aesthetics to enjoy. That’s because, bathroom remodels can be a great way to add value to your home, especially when it comes to resale potential. Buyers today like seeing updated bathrooms and kitchens, so when you’ve put in the time and expense of making thoughtful upgrades, it often pays off in your sales price.

What kind of return on investment is involved with a bathroom remodel? What kind of materials will give you a higher return? Would making a bathroom bigger be a smart choice? To help answer these questions, here are some tips to keep in mind as you plan your renovation.

The Average ROI on a Bathroom Remodel

While no two bathroom renovations are exactly alike, they represent the potential for increase in home value. How much? Recognizing that every bathroom, home and neighborhood differ, and that multiple factors affect resale potential, there are still some governing principles. According to U.S. News, for example, investing in a bathroom remodel yields a 62 percent return on average — at least if you do it well. A successful remodel means thinking strategically about what upgrades you make, banking on current trends and timeless features.

What High-End Materials Generate a Higher Return?

Part of knowing what high-end materials will pay off best in resale value is knowing the current market. You want to look at current trends and what is generating the best price-per-square-foot value, using that to guide your investment. Some bathroom renovation choices that tend to do well right now include:
 
  • Double sinks: Especially in the master bathroom, homeowners like double sinks that provide more convenience and flexibility.
  • Brushed metal faucets and fixtures: There are multiple styles of finishes that do well in resale value, including pewter, silver, nickel, copper, bronze and gold. Whatever you go with, aim to match all the bathroom fixtures together.
  • Luxury bonuses: To give a bathroom that “wow” factor to attract buyers, see if you can incorporate a few impressive extras. This could be heated towel racks or radiant heat floor mats. You might add a hand shower to the shower/tub. Think strategically to make upgrades that will make a difference.
Keep in mind that, in many cases, cosmetic changes tend to be smarter investments than major layout changes or overhauls. To get the most out of your bathroom remodel, focus on visual features like colors, fixtures and tile.

How Bathroom Size Factors Into Resale Value

Buyers typically like full baths with space. If they’re buying a home with three bedrooms, for example, they’ll usually prefer two full baths over one-and-a-half bathrooms. What does this mean when you’re remodeling? If you can affordably increase a bathroom’s size, it might be a wise choice. Upgrading a half bath to a full bath makes a significant difference in your home’s specs, potentially boosting its value when it’s time to sell.

When it comes to bathroom renovations, there are no guarantees about resale value, but there are some general guidelines to help you make wise choices. Look at all the factors, think about what’s selling well, and reference studies like this 2016 Cost Vs. Value Report to help you make decisions you can feel good about when it’s time to sell!

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