Most renovations add value to your home, and knowing how much this could be can be a great way to justify the investment into a remodel. 

After all, if you’re able to eventually recoup a large percentage of the money that you put into a project, it suddenly makes a lot more sense, especially given that the reason you first considered a new bathroom was most likely that it needed upgrading, modernizing or improving.

But just how much value does a bathroom remodel add to your home?

According to the RenoFi Renovation Index, on average, you’ll be able to recoup somewhere between $13,688 (64% of the project’s cost) for a midrange remodel and $37,995 for an upscale remodel (56.6% of the project’s cost).

The return that you can expect to see will depend on whether it’s your master bathroom or a half bath that you’re remodeling.

For an addition, you can expect to recoup anywhere from $26,807 (54% of the project’s cost) when going midrange to $49,961 (54.7% of the total cost) when going upscale.”

In this guide, we’ll take a look at how different bathroom updates can increase your bathroom’s value, how much they cost, and which you should tackle first. 

Best Bathroom Renovations with Good ROI

When you’re remodeling your bathroom, there are lots of different features and aspects to consider upgrading, and some will provide better ROI than others. 

Here are just a few of the features that are worth considering for a bathroom remodel:

Lighting

While it may seem like a minor part of a bathroom remodel, lighting fixtures can affect the overall appearance of the entire space. Dim, outdated lighting can make your bathroom look really drab, even after an expensive makeover. 

Consider updating your vanity lighting to make the space pop and give it a more modern look for a small cost.

Ventilation 

There’s nothing worse than walking into your bathroom, looking up at the ceiling, and seeing the growth of mold and mildew all over your walls and ceiling. What’s the point of re-doing your shower if it’s going to be poorly ventilated? Your space will last much longer if you consider good ventilation methods in your renovation plans.

Retiling 

Retiling the walls of the shower is one of the more expensive projects, because it requires a lot of attention to detail from a tiling expert. However, good quality, modern tiling can totally change a space and make it look much more sleek, increasing the overall value of your home.

Vanity 

Upgrading your vanity is a relatively simple way to improve the look of your bathroom. This is where you’ll spend time getting ready, so good lighting, a large mirror, counter space, double sinks, etc. will make the start of your day or night a lot more enjoyable.

Flooring 

Several styles of inexpensive vinyl and laminate flooring are waterproof and can be engineered to look like more expensive materials, such as wood or stone.

Heated flooring is more expensive but could return a bigger ROI and be more attractive to potential buyers (and make those cold mornings a bit easier).

Reasons Why Buyers Like Renovated Bathrooms

While it’s certainly important for your bathroom to be aesthetically pleasing for buyers, there are also so many other functional reasons why buyers like to see newly renovated bathrooms. 

Energy-Saving 

Today, more and more homeowners are trying to be energy-conscious, for money and environmental reasons. When you remodel your bathroom, consider different types of appliances and features that save energy. Even just updating to more modern pieces can often reduce energy waste. 

Replacing light fixtures and water heaters can save on electricity and gas bills. Low-flow toilets and shower heads can also help, and be a talking point with buyers.

Water 

Mold and mildew can develop behind tile or drywall, in grout or tile seams, and on ceilings. While it might be easy to hide during the tour, an inspector will surely be able to identify potential problems if your ventilation is out of date and your room is prone to mold.

This can cause allergic reactions or other serious respiratory problems. Remodeling provides a chance to start fresh with new sealants with mold-resistant features.

Extra Storage

Buyers are always looking for more hidden storage space, especially in bathrooms, for linens, cleaning supplies, toiletries, and other bathroom items. 

See if there is room to build linen or supply storage space into the wall and run the shelves from floor to ceiling.

Modern Style

While vintage charm does have its own appealing characteristics, modern fixtures provide hygienic and convenience options that were simply not available to earlier remodelers.

Leaks & Cracks 

Cracked tiles, loose grout, and leaky sinks and tubs can be hazardous to other areas of the home, such as the ceiling of the room below. 

Remodeling can stop leaks and cracks before they become a problem and create damage.

Types of Bathroom Renovations

But not every bathroom remodel is the same. Normally we measure bathroom updates, and how much value they’ll provide, based on their approximate scale. 

Check out three categories of standard bathroom updates to see where your remodel fits in: 

Standard Updates

  • Midrange: includes materials like ceramic tile floors, a new shower handle, a standard white toilet, and a new vanity counter.
  • Upscale: may include structural changes like expanding or adjusting the layout of the bathroom, heated floors, high-end faucets, stone countertops with double sinks, and tiled shower walls.
  • Universal Design: makes a bathroom wheelchair accessible, with features like a widened doorway, accessible storage, a walk-in shower, and support bars throughout the bathroom.

Each of these types of updates will provide you with a different return on value, depending on the exact project and where you live. 

Bathroom Addition

However, if you have a home with only one bathroom, you may find that adding a whole new bathroom provides a better ROI. One of the first things buyers and appraisers will look at is how many bathrooms and bedrooms a home has. 

If your home doesn’t have enough bathrooms to accommodate the average family and a few guests, you could consider adding another bathroom to increase value. 

According to HGTV, buyers look for a master bath, family bath (or two, depending on your lifestyle and family size), and half bathroom for guests.

There are a few different ways you can add this bathroom. While you could always bump out a wall or build a full addition to your home, you could also convert a walk-in closet, pantry, basement area, or spare area under a staircase. 

Just remember, the additional costs of new plumbing for the new bathroom will include permits, hiring professionals, time, labor, and materials. Any structural changes such as adding or removing a wall may provide a better ROI, but will be even more expensive.

Bathroom Remodel Considerations

If you’re remodeling your bathroom to increase your home’s value, it’s important to compare your space to other homes on the market and use that as a benchmark. 

Think about these questions: Is my bathroom already in need of repairs? Does the local market show demand for new bathrooms? If so, should I remodel my bathroom before selling my house? Do similar homes have more bathrooms?

Here are some considerations to think about before deciding the scope of your project. 

Consider Your Budget

Most homeowners are shocked when they get estimates for bathroom remodeling. Because of the complicated trade work requirements for bathrooms, they can be quite expensive. It’s important to be realistic about the cost and get accurate estimates up front before making decisions. 

  • If after considering your budget you decide not to remodel, there are other things you can do to increase the value, like painting, replacing lighting fixtures, toilets, shower heads, etc.
  • Start by making a “wants” list and a “needs” list for your bathroom remodel. Your needs list should include anything that’s broken, and the wants list can include things that are outdated, or things that could really improve your quality of life.
  • If your budget just barely covers the estimated cost of the remodel, take a pause and consider financing options. Many projects go over budget and you should always have a buffer. 
  • If you can afford it, consider going for a three-quarter or full bath instead of a half bath (with a shower or tub) to increase your home’s resale value.
  • Ask an appraiser to give you an estimate or ask a realtor to compare your home’s value to others in the neighborhood. If your planned changes will go above the average neighborhood value, it may be wise to scale back.

Don’t DIY for Major Remodels

The bathroom is truly the last place you should DIY your remodel. Plumbing, electrical work, tiling and water considerations don’t leave any room for error. Many folks who go this route end up having to spend more in the future to fix their own mistakes, or the project gets dragged out over multiple years because of issues.

If you are planning to DIY a small makeover, consider at least getting an estimate from a contractor so you can get their initial opinion on the project. 

Do Bathroom Renovations Increase Home Value?

The short answer is yes. But it truly depends on your personal situation. It’s really difficult to know exactly how much a bathroom remodel can increase your home’s value, because it depends on outside market factors and the neighborhood you live in. 

But, if your bathroom is really out of date, has broken appliances, or obvious wear and tear, remodeling is an easy choice to make.Here are some final things to consider as you 

  • Buyers will want to see that a home is well-maintained, so spending some attention on caulking the tub, re-grouting the tile floor, or adding new lighting fixtures can make a big impact. 
  • Renovations and/or adding a brand new bathroom will make the house more desirable and therefore more valuable. However, not all renovations are the same, so it depends on what the owner puts into the house as well as the abilities of the contractor who does the job.
  • According to consumerreports.org, a brand new bathroom also helps inspire offers on your house, and small, inexpensive updates to this space could help you fetch 2-3% more for your house.

Looking for a loan option to fund your bathroom remodel? RenoFi can help! 

RenoFi Loans are a new type of home renovation loan that provide the perfect way to finance a home addition by stretching your borrowing power even further. 

How do I know if a RenoFi Loan is right for my project?

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Unlike traditional home equity loans, RenoFi Loans factor in what your home will be worth after the work has been completed, as a result, increasing your borrowing power by 11x.

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