High-ROI Bathroom Renovations: 4 Ways to Upgrade Your Bathroom
Posted by Lauren Schneider on Tuesday, September 7th, 2021 at 8:33am.
When it comes to sound home investments, bathroom home improvement projects can often deliver a strong return on investment. In both new and older construction homes, buyers are interested in seeing modern bathrooms with the latest features. In a competitive market, there may be higher expectations from potential buyers. However, sellers need to realize that not every upgrade helping a bathroom stand out will offer a great return.
It does pay to know the current market and which renovations offer the highest ROI. If a home is going to market soon after a quality bathroom upgrade, it is useful to know what buyers expect and pay extra for in a specific area. Read on to learn which affordable bathroom upgrades often pay for themselves.
Minor and Major Bathroom Renovation Projects
Generally speaking, homeowners can feel confident in seeing a sizeable return on a bathroom renovation. In larger cities like Baltimore, Atlanta, and San Diego, homeowners have seen returns in excess of their original investment. When it comes to such a remodeling project, it becomes glaringly apparent if money was well spent. That being said, it pays to understand the local market and check out current open houses. Speak to a trusted agent to better understand buyer expectations and which bathroom upgrades are most desired in the area.
Bathroom Addition or Bathroom Renovation
Is it possible to transform the existing space? If the house has just one bathroom, the best investment is to go with full bathroom addition. If there is a half-bathroom, consider extending it. Forgo bathroom upgrades on the original bathroom and take the funds to add another bathroom if possible. This is often needed in an older one-bath home. Those looking to live in their home for some time before listing should remodel a bathroom in a way that best fits their needs. Others looking to get the highest ROI would do well to consider the quality of the bathroom renovation project and how soon they will list their home. Typically, a home with more bathrooms but the same square footage as a comparable house will have a higher asking price.
Strategic Bathroom Home Renovation Projects
Minor bathroom upgrades offer a solid return. An affordable bathroom renovation project can include updates like:
- Swapping out the old showerhead for a rain showerhead
- Changing out the vanity
- Adding new lighting fixtures
These are simple and relatively inexpensive projects that can make a bathroom brighter and more appealing without a significant investment. Replacement of fixtures or a shower-bathtub replacement is recommended every 15 years or so as these areas show wear easily and tend to date a bathroom. Smaller bathroom remodeling projects costing around $10k will generally see an ROI of over 100%. These items can be suitable projects for DIYers and professional contractors alike.
Larger Bathroom Renovation Projects
There are times when a significant bathroom upgrade is completely called for and a smart investment. While the return may be a little less when compared to a small bathroom upgrade, the market and age of the home may support the need for such a renovation. A complete overhaul can require changing everything from plumbing to lighting. A walk-in shower with luxury features like natural stone walls, a full-body shower head system, and a sauna offer high-end appeal. Before taking on a major renovation, do an assessment of the bathroom and address elements detracting from the bathroom's appeal. Upgrading the master bathroom is often a worthwhile decision for a homeowner.
What Is Worth the Spend?
Bathroom renovations have been shown to offer returns of 75 percent or more. However, it pays to understand market conditions and the local buyer expectations. High-end finishes and a modern design may not recoup as much in a buyer's market or when such touches are not supported by the prices of recent comps. Also, a bathroom renovation will be secondary to issues like having to repair the roof. There shouldn't be outstanding projects that can impact the condition of the home. Any such problems need to be addressed before taking on more cosmetic upgrades, like a minor bathroom renovation.