How Much Does a Bathroom Really Contribute to a Home’s Value?
When it comes to home values, it seems like everyone has the secret to what is going to make the biggest impact. Some people think that it’s the kitchen. Others will tell you the bathroom is the most important. How, though, can you really know what your improvements are contributing to the value of your home? A little research can go a long way. Here are some facts about bathrooms and how they affect the value of your home.
Despite the many factors that go into a buyer’s purchasing decision, bathrooms remain at the forefront of the discussion. A buyer who may be flexible about other details of the home will often come in with a hard requirement for the number of baths included and they will not budge until they find what they need. For most families, one and a half baths is a minimum requirement. Some larger families will require at least two baths in a home. Thus, a home with more bathrooms is generally more valuable.
In Australia, the term “half bath” can sometimes mean any bathroom-like space that is missing at least one of the three major elements (tub, toilet, or sink). This can make it a little difficult to track the exact numbers related to bathrooms and home value, but it’s still safe to assume that more bathrooms are better when it comes to resale value and potential.
As with anything, how many bathrooms your home has is not important if they are not updated, well-designed, and outfitted with quality fittings and fixtures. Depending on the market conditions, the price variance between an outdated bath and a modern one can be as high as five percent or more.
The interesting thing about quality in bathroom renovations is that high-end doesn’t always mean high return on investment (ROI). A basic bathroom upgrade costs a third of an upscale renovation, and can bring much higher returns. There are also some specific upgrades that will warrant a bigger return or generate more interest. These include flooring upgrades, a new vanity, and a walk-in shower or soaking tub.
Bathroom Values by the Numbers
Forget about renovating for a minute. The existing bathrooms in the home have a value all their own, all upgrades aside. On average:
● A half-bath adds about 10% to the home value, depending on the configuration
● A full bathroom will increase the value of the home by about 20%
Keep in mind that this is assuming that the bathrooms fit into the layout of the home and provides a useful space. If the space is not functional or takes up a space that could be better used for another living area, it could hurt, rather than help, the value of your home.
The bathroom has been the culprit of many buyers walking away from sales over the years. This room can also add a lot of value to your home when it is well-maintained, updated, and functional. Take a look at your own bathrooms and see what they can do for you.