Remodeling a bathroom is one of the most popular home improvement projects. It’s clear that you can add significant value and convenience to your home by remodeling a bathroom. However, most people are unaware of how much value bathroom remodeling adds to the overall equity in a home. This amount varies due to the circumstances surrounding each remodel.
The Type of Bathroom Remodel
The value that any particular bathroom remodel adds to a home will depend on the scope of the project, as well as the overall condition of the rest of the house. For example, if your home is older and there are other significant repairs needed, updating your bathroom will have the least impact on your home’s value. In fact, you may see little to no added value by completing just a bathroom remodel if your home needs other work.
On the other hand, a home in good condition can see a significant increase in value by remodeling the bathroom. For homes with a modern kitchen, good carpet, sound electrical and clean paint, approximately 80% of the initial investment can be reclaimed when the home is sold. This means that a bathroom remodel that costs you $1,000 will result in about $800 of added value to your home.
These two scenarios deal with remodels that do not impact other areas of the home and do not add more square footage. If more square footage is added or living spaces changed significantly, then the value created by the bathroom remodel will be different.
Adding Bathrooms to Your Home
You will get the most added value if your bathroom remodel creates a bathroom that is not already in your home’s specifications. The percentage will vary based upon the project. Adding a bathroom to existing square footage will result in different percentages than building an addition that includes a bathroom.
When adding a bathroom to your existing home, the most lucrative project is creating a master bathroom. Most owners prefer the convenience of a dedicated bathroom, so your home will be worth more and easier to market.
In fact, this type of bathroom remodel is considered by experts to be the best value for your remodeling dollar. In most cases, you can expect to see a 100% return on the cost of the remodel. In other words, for every $1,000 you spend on the remodel, $1,000 of value is added to your home.
While building a master bathroom in your existing home is lucrative, many families do not have the space to spare. Because of this, adding an addition that includes an extra bathroom is a widely-used option. Again, an addition that is a full master bedroom and bathroom suite is the best value for your remodeling dollars.
Still, just building an extra bathroom can increase your home’s value by about 96% of the initial investment. If you are adding a full master suite, you might see as much as 100% of the cost added to the value of your home. This is most likely if the existing home does not already have a master suite.