If you find yourself wondering, “does bathroom remodel increase home value?” the answer is yes. Home improvement projects of all types and sizes increase the value of your home. However, the exact amount could vary based on the project and the amount of money you invest. Some projects offer little return on investment (ROI), while others can provide a lot of bang for your buck.
In the case of a bathroom renovation, the numbers are generally pretty good. In fact, Remodeling magazine shows that returns are going up for most bathroom remodels. You can check out their cost vs. value report to see the numbers for yourself!
Why Does Increasing Your Home Value Matter?
Many homeowners remodel their bathrooms because they want to improve its appearance. Others might need to add more space or make the room more functional. Regardless of your intentions, you can enjoy the added benefit of increasing your home value. An increase in home value might actually be the biggest benefits you receive, especially if you plan to sell your home.
The higher your home value, the more you are likely to get a high selling price. An attractive, newly-renovated home can also make your home more desirable to potential buyers. Even if you don’t plan to sell your house, an increased home value can increase your equity. This could be the difference between paying a private mortgage insurance and not.
Would you like to know more about how to calculate your home value increase? Do you need to know more about the ROI for your project? If you answered yes to either question, then keep reading. This article will cover:
- The Usual Cost of Remodeling Your Bathroom
- The Average ROI of a Bathroom Remodel
- High-Value Bathroom Remodel Projects
- Discussing Your Project with a Contractor
Usual Cost of Remodeling Your Bathroom
The cost of a bathroom remodeling project depends on many factors from the quality of the materials to the extent of the renovation. Since they can vary so much, remodel costs are usually split up into three categories:
- Low-Scale Remodels: What classifies a project as low-scale? It’s any remodel that uses the most economical materials. Most of these projects are done without the help of professional contractors. They don’t involve any demolition or major changes to the bathroom’s layout.
- Midrange Remodels: A midrange remodel often involves more work and mid-level materials. For example, you might choose a laminate countertop rather than granite or quartz. You also might select linoleum instead of ceramic tile.
- Upscale Remodels: If you want to invest in an upscale bathroom, you should expect to pay top dollar for your materials. That’s not all. These projects typically involve bathroom additions or master bathroom expansions.
Cost of Low-Scale Remodeling Project
When you take on a low-scale project, you can invest as little as one hundred dollars. This money could cover the cost of a fresh coat of paint, new knobs for your cabinet drawers, or light fixtures. However, most low-scale bathroom remodels will cost a few thousand dollars. HomeAdvisor reports that the national average for a basic, small bathroom remodel is $6,500.
Cost of Midrange Remodeling Project
Remodeling magazine shows the trend for midrange remodeling projects has moved upwards steadily over the past decade. In 2021, the average cost of these renovations reached over $24,000. These projects typically cost much more than a low-scale because they require professional assistance.
Cost Upscale Remodeling Project
If you really want to transform your master bath into a luxurious and stylish space, you can expect to pay a pretty penny. As with midrange projects, the cost for upscale bathroom renovations has been on the rise over the years. The average upscale remodel cost homeowners upwards of $75,000.
Average ROI of a Bathroom Remodel
Rather than focusing solely on the question “does bathroom remodel increase home value?” you need to look at the ROI. Spending more money can give you a higher increase in value, but that doesn’t necessarily equate to a better ROI. In some cases, you could spend far more than you could ever recoup. For that reason, you need to learn how to calculate your return on investment.
How to Calculate the ROI
If you want to know how much money you could recoup, you should compare the cost of the project to the increase in your home’s resale value. More specifically, you need to divide the home value increase by the total cost of your project.
Using those calculations, we can determine whether a midrange or upscale renovation has a better return:
Midrange: This project increases your value by $14,761, so we can divide that number by the cost to get a 60% return.
Upscale: To determine an upscale renovation ROI, we divide the $41,471 increase in value by the cost to calculate a 55% return.
Is It Right for You?
Based on these numbers, we can see that the midrange project has a better ROI. However, these are just average numbers. You will have to calculate your own ROI based on estimated costs and value to see if your project is worth the investment.
If you plan to sell your home immediately, you might find that this project isn’t worthwhile. The data shows that while you recoup part of your money, you don’t recover it all. Therefore, you might end up losing money when you sell.
A mid-range or upscale bathroom remodel is better for homeowners who plan to get some use out of the space. Whether you want to add a spacious walk-in shower or a luxurious steam shower, you can’t forget to consider your enjoyment in your decision making.
Chat with a Contractor in New Jersey
If you are still unsure whether or not you should remodel your bathroom, you should speak with a professional. While there are plenty of remodeling companies, it’s important that you choose one that has plenty of experience with bathrooms. An honest and reliable contractor can help you determine whether your renovation is a good investment.
Your Local NJ Bathroom Remodeler
Fortunately, homeowners in NJ don’t have to look far to find a trustworthy bathroom remodeling contractor. Magnolia Home Remodeling Group has over 30 years of bathroom renovation experience. Not to mention, we have in-house designers, plumbers, and installations. Therefore, you can be sure we have the knowledge, skills, and resources to transform your space.