How can you ensure a good return on investment (ROI) for a bathroom upgrade?
If you’re thinking about refinancing your home or selling within 2 to 4 years, you’re likely searching for ways to improve home value. The value of your home depends on many factors, such as home condition, the value of your neighbors’ homes, the real estate market, your location and the type of upgrades you complete. Before you start a bathroom renovation, take some time to check out what else is on the market in your neighborhood. You can go to open houses to see what similar-sized homes sell for in your area. While there, inspect the bathrooms for upgrades or recent modifications. This can show you what buyers are looking for.
Costs vs. Value of Remodeling
According to the 2019 Cost vs Value Report, you can expect to get an average ROI of about 67 percent for a mid-range bathroom upgrade. This means that if you spent $20,400 on the renovation, you’d recoup about $13,700 in the home’s sale price.For an upscale bathroom renovation, you can expect an average ROI of about 60 percent. In this case, spending roughly $64,700 would net you $38,900 with the sale price. Location matters, though. In the East Central market that includes Chicago, a mid-range bathroom remodels can have an ROI of up to 64 percent. The Pacific market might yield an ROI of 75 percent, while the South Atlantic market can see returns of up to 67 percent.
How to Get the Most from a Bathroom Upgrade
How can you ensure you get the most money back from your investment? Start by assessing the condition of the room.
– Are there plumbing leaks?
– Is anything structurally unsound?
– How’s the electrical system?
Get the basics set before moving to the cosmetic upgrades.
Small Projects: You’ll likely recoup the most by undertaking several small projects instead of gutting the entire
bathroom and starting fresh.
Lighting is easy to update and can have a significant impact on your home’s value. Get rid of
gloomy light fixtures and install recessed lights or wall sconces.
Brushed metal faucets are elegant but relatively inexpensive, and they are much more desirable
than older styles. Nickel, silver, bronze and pewter faucets are all common.
Whether you go with tile or vinyl, you should consider changing the flooring. Bathrooms get a
lot of foot traffic over the years, and they can become tired-looking. If the tiles are in great
shape, consider re-grouting or using a grouting paint pen for a brighter finish.
Walls. Always give the walls a fresh coat of paint using a neutral paint scheme. It brightens the room instantly.
Moderate Projects: What Should You Look At?
Does your bathroom require a mid-range upgrade? You’ll want to look at the following areas to
get the most money back for your investment.
Consider replacing a worn-out or chipped countertop with one made from granite or quartz. If
you have the space for it, pick a vanity with dual sinks to increase functionality.
Most buyers want stand-alone showers or a well-designed combination tub/shower. You’ll want
to consider adding frameless glass that’s easy to clean.
Energy efficient toilets are the best option here. A low-flow toilet saves about 1.2 liters (0.3 gal)
of water with each flush. A dual-flush push button toilet offers different options—one button uses 3 liters (0.8 gal) of water, and the other uses 6 liters (1.6 gal) per flush.
When it comes to home renovations and your property value, you should keep your renovation appropriate for your current home value. If a home appraisal listed your home on the lower end, going all out with a luxury bathroom remodel won’t add as much value as you’d expect. This is because it would price your house out of the local market, meaning you’d never recoup most of what you put into it. Even if you don’t plan to sell your home or refinance it, you can still reap the benefits of remodeling your bathroom. A more functional bathroom can be the perfect space to relax and wash off the stress of the day.