How Much Value Does a Bathroom Remodel Add to a Home?

The number and quality of bathrooms in a home can make or break a home sale. A lot of homeowners put a hard premium on luxurious, fully-functional, and aesthetically pleasing bathrooms. The value they afford the property increases with each one that meets their approval. That being said, homeowners who are aware of this often allocate a huge chunk of their resources in a bathroom remodel, hoping to significantly increase their property’s market value.

But exactly how much value does a bathroom remodel add to your average home, and is it worth the investment in the first place?

Getting the Averages

Generally speaking, it’s fairly difficult to get the average price and ROI of a bathroom remodel. Prices depend heavily on a number of factors—location, labor, materials, operating expenses, overall cost—and these factors, in turn, are very much dependent on a homeowner’s situation.

In California, the remodel for an average-sized bathroom can be between $15,000 and $25,000. Typically, you’d expect to pay more for bigger bathrooms with more furnishings, and relatively small bathrooms with luxury features (i.e. Jacuzzi tubs, mood lighting, smart technology, heated floors) which can cost upwards of $25,000.

Again, it all depends on the situation.

Value Added

Although bathroom remodels don’t automatically guarantee a full recoup of finances once the house sells, they do give one of the highest returns amongst common home improvement projects.

According to the National Association of Realtors, new bathrooms return about 60% of the initial investment during a successful sale—on average. This percentage also varies according to region, as Western homeowners enjoy about 7% more of the average return (67%) and homeowners over in the East average about 47.7%.

Despite not returning a full 100% of the initial investment, a bathroom remodel does actually add value to your home. Ideally, new bathrooms with modern working features can help you fetch about 2%-3% more for your home.

However, simply remodeling your bathroom does not guarantee these percentages. You need to carefully consider what you’re going to do to your bathroom to get maximum value from it.

Bathroom Remodeling Considerations

In terms of a bathroom remodel, every decision you make greatly affects the end result—from choosing the right flooring, deciding what color the walls should be, and whether or not to install a bathtub. Practical additions and bathroom staples will, in no way, detract from the value. However, be wary of the luxury items, features, and decorations you choose to include. These may do wonders for the visual appeal but, in terms of value, neither raise nor lower the price.

You also need to carefully consider how many bathrooms you’re going to put in your home. One full and one three-quarter bath might be more attractive than three half-baths. A typical family home might have two full baths—one for the kids, one for the parents—and one half-bath for guests. It’s best to get an industry professionals opinion on what would work best for your property.

Overall, it’s difficult to quantify exactly how much value a bathroom remodel adds to your home. Yes, there’s definitely value added, and yes, it’s definitely a smart investment. However, you need to carefully weigh all your options and be aware of every factor that goes into the remodel if you want to optimize your return.