ROI For A Bathroom Remodel
Many homeowners think about areas of their homes that could be improved before they sell. Bathrooms are a common area. According to online sources, 26 percent of sellers do some renovation to their bathroom before they sell. Although remodeling a bathroom can attract more buyers than selling it, you will not get every dollar that you invested back when the sale is completed.
Bathroom remodels are the most profitable in terms of increasing your home's resale values. You can expect a $1.71 increase to your home's value for every $1 spent on minor cosmetic improvements. This includes minor cosmetic changes such as painting or refinishing cabinets, changing the mirror, or upgrading hardware.
Even if you have limited time or budget, it is a smart decision to focus on bathrooms.
Do I Need To Remodel My Bathroom Before I Sell My House?
If you're in the Pacific region, a bathroom remodel is likely a good idea, as it offers the highest average ROI in the country, according to Remodeling magazine's Cost vs. Value Report for 2018 -- more on those stats later.
Before remodeling your bathroom, regardless of where you live.
Is There A Demand In The Local Market For New Bathrooms
Run some recent comps or have your real estate agent run some comps. Are there any new developments in the area near your target price? A brand new bathroom might be the best option if you want to compete with new homes.
A bathroom remodels will not only increase your sales but can also help you get a better ROI. You might attract buyers to your home if you have a renovated bathroom.
Are There Any Bathroom Repairs Needed?
It might not be worth remodeling your bathroom if it is in good condition and has only slightly outdated materials (cherry cabinets or tan granite, as an example).
However, if your bathroom has cracked tile, mold, water damage, structural issues, or substandard electrical, you'll definitely want to remodel, as most of those issues will come up in a buyer's inspection anyway. When selling a home with serious issues, you're going to end up paying for the repairs one way or another -- by doing the repairs before listing, negotiating with your buyer after a poor inspection report, or by listing at a lower price in consideration of the work that needs to be done.
Are New Bathrooms The Best ROI Projects?
You don't have to wait until you have enough money for a bathroom renovation before you move on. Ask your agent about the best home features for your area if you have money for renovations before you list your house.
For example, in Dallas, the best return you'll get on a midrange project is installing a manufactured veneer on the outside of your house -- it'll get you a 131.4 percent return, on average.
If you absolutely need to remodel the bathroom in your Dallas-area home, a midrange bathroom can bring in a 72.7 percent return.
Are You Looking To Quickly Sell Your House?
Remodeling your bathroom may be too difficult if you have to sell quickly or because you need cash to purchase a home or move to another city.
Different Types Of Bathroom Remodel
Remodeling magazine's Cost vs. Value Report tracks the average cost of specific home improvements on a national, regional, and statewide level. These data will help you determine the return-on-investment for your bathroom remodel based on what type of remodeling you choose and the quality of the finishes.
Standard Bathroom Remodel
Remodels can be classified as an either midrange or upscale based on the quality of the finishes used. However, these remodels are not cosmetic.
Midrange Bathroom Remodel
Midrange renovations include materials such as ceramic tile floors, new chrome fixtures and surrounds, a ceramic tile surround, single-level shower handles, standard white toilets, solid surface vanity counters, and ceramic tile floors. These finishes are functional and attractive but not high-end.
National average ROI: 70.1 percent
Average national cost $19,134
National average return: $13,422
Upscale Bathroom Remodel
A bathroom remodels that is more expensive may require structural changes such as expanding or changing the layout. You can choose from heated floors, large ceramic tile, heated floors, and new lighting. Stone countertops are also available with double sinks. Frameless glass doors can be used to create showers. This type of bathroom remodels also includes freestanding tubs.
National average ROI: 56.2 percent
Average national cost $61,662
National average return: $34,644
Universal Design Bathroom Remodel
This bathroom remodels a special type that makes it wheelchair-accessible. It includes features such as a widening doorway, accessible storage, and push-button locks. A walk-in, flush-with-the-floor shower with a seat that folds down, a taller toilet, and an open-base vanity that can be adjusted to accommodate a wheelchair. There are also support bars throughout.
The report identifies that midrange remodels are the most expensive type of universal bathroom remodels, but it provides the best return on investment.
National average ROI: 70.6 percent
Average national cost $16,393
National average return: $11,581
Bathroom Renovation
A whole new bathroom can provide a greater ROI than remodeling an existing bathroom, which might be a good thing for sellers. A bathroom addition can make a great investment if your home has only one bathroom or you have too many bedrooms and bathrooms.
Midrange Bathroom Addition
This project involves a 6-by-8-foot bathroom with the same features as a midrange renovation: ceramic tile floors and new chrome fixtures. A ceramic tile surround is also included. There's also a single-level white toilet, solid-surface vanity counter, and standard white toilet. The tub/shower will be made of fiberglass with a ceramic surround.
National average ROI: 59.9 percent
Average national cost $44,717
National average return: $26,769
Upscale Bathroom Addition
A new bathroom will need to be at least 100 square feet. It will also feature the same high-end features as a bathroom remodel.
National average ROI: 54.6 percent
Average national cost $83,869
National average return: $45,752
Location Is A Key Factor In Bathroom Remodels
Your home's value and the amount you can spend before you have to over-improve it are two of the main factors that determine your bathroom remodels ROI. However, your local realty market is another important factor. You won't get much return if buyers aren't looking for brand-new bathrooms or renovated bathrooms in your neighborhood.
Remodeling A Bathroom In The Mid-Range Is A Good Investment
Sellers in the Pacific region of the United States, which includes California, Hawaii, Washington, Oregon, and Alaska, see the highest average ROI on a midrange bathroom remodel, at 87.7 percent. The average cost of a remodel is $21,855, with $19,378 being recouped.
The South Atlantic is close behind. It includes West Virginia and Delaware, Maryland, Virginia. South Carolina, South Carolina. Georgia. And Florida. Based on an average remodel cost of $17,704 with a recouped cost of $12,982, sellers in this region have a 73.5 percent ROI.
The areas with the lowest ROI are the East North Central (Wisconsin and Illinois), Indiana, Michigan, Michigan, and Ohio), and the West North Central (North Dakota, Minnesota and South Dakota, Nebraska and Iowa).
Tips To Increase The Return On Bathroom Remodeling Projects
Spend less, and your ROI will be higher. These tips will help you keep within your budget and not over-improve your bathroom.
First, Fix What Isn't Working
Begin by focusing on what is going to look bad on a buyer's home tour or worse in a home inspection report. Cracked tiles, peeling caulk, and water stains are just a few examples.
If you need to replace anything, choose waterproof materials. Porous materials, including marble, don't last long and require significant maintenance.
If you need ventilation, install a quiet new fan or, even better, a window. A window allows for natural light to enter the space and gives it a new look.
Prioritize Layout
Bathrooms must always be functional. If you are considering remodeling your bathroom, remember to keep the functionality in mind. You should ensure there is enough space for the cabinet doors and the shower door, avoid placing a toilet near a bathtub if possible and make sure that there are outlets nearby.
Buyers may be attracted to a water closet depending on the market, the price, and the home's layout.
Design Neutral
A powder room can be a little more fun, but full bathrooms should still be light and neutral. You want to attract as many buyers as possible. Online sources indicate that light blue bathrooms, which are a combination of a gray-blue tint and periwinkle, can increase the home's value by an average of $2786.
Bathroom Upgrades At A Fraction Of The Cost
Even minor improvements to bathrooms can have a significant impact on buyers. These budget-friendly options are worth considering:
Instead of replacing cabinets, paint or refinish them.
Install a new toilet with a long bowl and comfort height.
You can add new lighting such as sconces to give your home a luxurious look.
Consider adding a new mirror to your home or installing a recessed mirrored-front medicine chest.
Make sure to update hardware throughout the house, including pulls, knobs, and faucets.
For ease and affordability, you might consider replacing cracked or scratched countertops with a prefabricated vanity.
Deep cleaning -- removing rust stains, scrubbing every surface, and recaulking all surfaces can make a huge difference.
