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How Much Can a Bathroom Remodel Add to Property Value?

By Jakemontgomery @LTDOnlineStores

Many homeowners wonder which remodeling project will return the best bang for your buck. Among the home projects with the highest return on investment, the bathroom has consistently ranked on this list. In fact, bathrooms have surpassed kitchens as one of the most important Make-or-Break selling points on the checklist of prospective homebuyers.

Whether you’re planning on a full bathroom remodel, a new addition, or a cosmetic update, the bathroom is one of the most efficient ways to recoup your investment. Not only that, the importance and popularity of the bathroom is steadily increasing. Add comfort, style, and convenience to your life.

how much does a bathroom add to the value of a house

Don’t try this at home! Source: Mosby Building Arts

How Much Does a Bathroom add to the Value of a House

Remodeling Magazine releases an annual Cost vs Value Report. This report details the average cost of 35 of the most popular home remodeling projects. The Cost vs Value Report lists the monetary value each project retains in 101 different U.S. cities. From this report, you can get an accurate estimate of how much a bathroom remodel will add to your home value.

2014 Remodeling Magazine Cost vs Value Report Remodeling Magazine

2014 Remodeling Magazine Cost vs Value Report courtesy Remodeling Magazine. Click to view larger image.

Bathroom Remodeling Return on Investment (ROI)

Click to view larger image.

Mid-Range Home Bathroom Remodel projects recouped 72.5% of remodeling costs while new bathroom additions added 60.1% of remodeling costs to overall property value. These numbers have increased year over year as the average Return-on-Investment (ROI) has shown gains as real estate begins to pick up again.

In 2014, the average cost of a bathroom remodeling project was $16,128. Wonder where all that money goes? Check out this breakdown of bath remodeling expenses! When all is said and done, you want your bathroom to be turn-key ready.

“A lot of folks, when they buy a home, don’t want to have to put a lot of work into it. An outdated bathroom requires a lot of work.”

-Paul Wyman, Agent at Wyman Group

Bathroom Remodel Home Resale Value

Here are the key statistics pertaining to the bathroom. Click to view larger image.

According to Real Estate.com, bathrooms became more important to home buyers than kitchens in 2011. This may be an indicator that bathrooms are in fact becoming the new home showcase.

Similarly, the National Association of Home Builders (NAHB) found that buyers like a home’s bathrooms to roughly equal the number of its bedrooms. This should be a reassuring sign if you are unsure just how much your bath remodel could add to the value of your home. Generally speaking, the average bathroom remodel will add to $11,688 to your homes’ value in a middle-class neighborhood.

Tips on Remodeling

A new bathroom is a major undertaking that can take upwards of 3-6 weeks so you better know what you’re doing! Make sure you know what home buyers are shopping for. Here is a list of resources that will help you do just that:

Bathroom Trends:

  1. Study Reveals What Homeowners are Looking for in a Master Bathroom
  2. War of the Roses- His and Hers Bathrooms on the Rise
  3. Bathroom Behavior: The Ideal Standard Study

While you want to update the look and feel of your bathroom, you don’t want to choose any colors that will alienate potential buyers. For this reason, it’s a good idea to stick with sophisticated neutrals.

“Giving it new paint, a new toilet, a new shower faucet, and a new showerhead is probably the best bang for your buck. But that’s assuming the flooring is nice and the walls around the tub and shower are in good standing condition.”

-Dennis Gehman, Gehman Design Remodeling

Tips to Keep your Budget Down:

  1. 5 Budget Saving Bathroom Remodeling Tips
  2. Get the Designer Look in Your Bathroom for Half the Price
  3. How to Tile a Bathroom Floor Yourself

For more insight, you can check out our Bathroom Remodeling section.

About the Author
Cheryl Khan is an interior designer who is often tasked with managing the return value on home remodeling projects. Her rule of thumb? It it’s not going to increase property value, you better plan on living here for a long time!

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By D Grant Smith
posted on 21 May at 20:32

For those of us who have bought homes that we are remodeling, the bathroom has a greater focus. We didn't use our downstairs bathroom for about 5 months after buying our home because there was so much wrong with it and so much potential for things to get worse (with our lack of plumbing experience). That's changed now, but there are some big things to consider before trying plumbing yourself. http://midwayplumb.com/plumbing-tips/road-to-plumberhood/#more-628