Spring will soon be here and the annual uptick of home buying this season has you thinking of putting yours on the market. Your neighbor remodeled their bathroom last year and you’re wondering if you should upgrade yours before listing your home. But before you jump into the project, you ask yourself, “Will a bath remodel increase my home’s value?” Logically, the answer should be, ‘Yes,’ right?
From 2006 through 2012, the return on a bathroom remodel investment averaged around 62%, according to the cost vs. value report prepared by Remodeling magazine. Beginning in 2013, however, the numbers began trending up, so a bathroom remodel in 2014 is hovering near 72% and an addition is at 60% ROI (Return On Investment). Even so, the project will cost more than you can expect in return. That being said, there are still sound reasons to go ahead with a remodel, and your real estate agent can help you with your final decision.
One reason is that if several similar homes are on the market in your neighborhood, an upgraded bath may help yours sell more quickly. When comparing side by side, who doesn’t want a clean, fresh bath? Busy buyers looking to move in quickly won’t want to face upgrading the bathroom as soon as they move in. Another reason to consider updating your bath is to attract a different type of buyer. Flippers, investors and Do-it-yourself-homeowners will want the bones of the house to be in great shape, but will likely offer a lower price because they plan to make upgrades and changes themselves. But you want to list your home to attract the highest and best buyers in the shortest time possible, right? Qualified buyers that want move-in ready conditions will appreciate not having to worry about upgrading, remodeling or renovating.
If you and your real estate agent determine that a bath upgrade will improve the marketability and sale of your home, be sure to do it right. Do not attempt to squeeze in the remodel yourself between your regular job and other commitments, or higher an unlicensed contractor just to save a few bucks. Poorly installed flooring may cost you a sale. Remember, some changes do have more appeal than others. For instance, if you only have one bath, consider putting in a double sink. Couples, families and even roommates appreciate multiple sinks when trying to get out the door in the morning. Even a small bath can accommodate a double sink with the right choice. A new eco-friendly toilet is a nice touch too. Simple changes can give your bath a fresh look without a lot of expense. Consider fresh paint, a new rain-style showerhead, new classy but neutral shower curtain, updated faucets, or a new toilet. Don’t skimp on lighting. According to Alicia Garceau at HGTV, a bathroom remodel should include task lighting for applying makeup or shaving, ambient lighting—that bounces off walls—to soften shadows, accent lighting to give depth and dimension, and decorative lighting to add luxury or play up an architectural feature.
And don’t underestimate the importance of proper permits. Bathroom remodel without a permit will need to be disclosed and this could kill the deal with many potential buyers and may cause problems with the buyer’s lender not approving the sale. Discuss this with your professional realtor, as part of your planning stage for the remodel.
With the right attention to planning and execution, a bath remodel with definitely increase the appeal and marketing of your home and may indeed increase your home’s value.
Contact us and we’ll help you determine your home’s value and how to prepare it to sell for the best price and in the shortest time.