In general, renovating a bathroom can add almost as much value to a home as remodeling a kitchen. Bathrooms are used frequently and should be both practical and inviting. A small bathroom, especially one shared by two people, that is cramped and outdated can be a source of daily stress. Surprisingly, redoing an existing bathroom can generate almost as much value as creating one from scratch in many metropolitan areas.
Certain bathroom remodeling tasks should be left to professionals, such as electrical work, waterproofing, and structural changes. According to the National Association of Realtors (NAR), the satisfaction score for a bathroom renovation is 9.6 out of 10 for both homeowners who hire a professional and those who do the project themselves. The cost-effectiveness of the remodel will depend on whether it is the master bathroom or a half bathroom that is being renovated. To maximize the value of the home, it is important to compare the space with other homes on the market.
Not only should the bathroom be attractive to buyers, but there are also plenty of functional reasons why buyers like to see recently renovated bathrooms. Experienced contractors and real estate professionals advise homeowners to approach bathroom remodeling with return on investment (ROI) in mind. If the bathroom is really dated, has broken appliances, or obvious wear and tear, remodeling is an easy choice to make. It is difficult to know exactly how much value a remodeled bathroom will add to the home since it depends on external market factors and the neighborhood.
Homeowners may have to decide between upgrading an existing bathroom or adding a new bathtub to the house, or they may be wondering if it's worth adding a bathroom in the first place. According to NAR, remodeling a bathroom can recover approximately 71% of its cost-added value to the home, while adding a new bathroom recovers 63% of its cost. Adding a full bathroom could also allow for an elderly family member to move into the house without having to use the family or master bathroom. It is important to consider if there are bathrooms on each level of the house; if you finished the basement but didn't add a bathroom in that space, consider installing a sink.
On average, remodeling a bathroom can increase the value of the home by approximately 66% of what is spent on the renovation. This makes it one of the best projects for getting the most benefit from remodeling a bathroom that increases the value of the home.