Bathroom Remodel ROI – What can you Expect?

A bathroom remodel can be a great way to add some luxury to your home or get your home ready to sell. No matter your goals or financial position, all homeowners have one thing in common – getting the highest bathroom remodel ROI.

While no one will get 100% of their money back when remodeling a bathroom, it is one of the rooms in the home with the highest ROI.

Here’s what you can expect if you’re thinking about remodeling your bathroom:

Of course, no two projects are the same, so the return on investment you receive may differ. On average, homeowners see a 70% return on investment with a mid-range bathroom remodel and 60% on an upscale remodel.

The more work you do, the higher your ROI will be, and vice versa. Of course, this doesn’t mean a full bathroom remodel is always worth it, but in some cases, it might be.


Types of Bathroom Remodels and their ROI

Homeowners can choose any type of bathroom remodel to improve their homes, but here are the most common ways:

1. Cosmetic Bathroom Remodels

Cosmetic bathroom remodels usually have the highest return on investment. They can transform a boring room into one of luxury, and you don’t have to spend a lot of money.

You can remodel a bathroom’s appearance by doing any of the following:

  • Upgrade faucets
  • Replace shower tile
  • Replace flooring
  • Repaint the walls
  • Change light fixtures
  • Replace the countertops
  • Paint the cabinets
  • Replace cabinet hardware


2. Floor Plan Remodel

You might consider a complete remodel if your current bathroom floor plan isn’t working. You can completely change where the shower, sink, and toilet are located or choose to move only one thing. Either way, the job is more involved because you must adjust the plumbing and possibly the electrical. It’s also important to keep in mind that everything needs to meet the city’s code.

As you determine the right floor plan, consider how much use the bathroom will get, how many people will use it, and the functionality goals.


3. Bathroom Additions

If your family expanded, or you’ve outgrown the facilities you currently have, you may consider adding a bathroom. This is similar to a bathroom floor plan remodel, except you’re building the room from scratch. You won’t have to move plumbing or electrical, but instead, have it added to make the bathroom functional.


4. Creating an Accessible Bathroom

If you or maybe your parents are aging in place, you may need to remodel your bathroom to make it safer. Sometimes it’s as simple as adding shower seats and toilet handrails. Other times, you may need to remodel a bathroom floorplan to make it more accessible, especially if anyone in the house has a wheelchair or walker.


Ways to Increase a Bathroom Remodel ROI

Any money you invest in your home, you want to maximize. After all, it’s an investment. You most likely won’t keep the home forever and eventually want to make as much as possible when selling it. Here are some ways to increase a bathroom remodel ROI:


1. Fix Broken Things First

First, focus on areas that need immediate repairs. For example, fix the leaky pipes, faucets that don’t work, or bad lighting. Next, focus on cleaning the shower and tub, replacing the grout or tile, and making the bathroom more functional and beautiful overall.

A good rule of thumb is to focus on the issues that wouldn’t pass an inspection and would turn sellers away. Give these areas priority for the greatest ROI.


2. Consider the Materials Carefully

Choose materials for the bathroom that will stand the test of time and also be visually appealing. Don’t assume the more expensive materials will give you a better ROI. Unfortunately, that’s not always the case.

For example, you can find laminate flooring and countertops that mimic the much higher-end materials for a fraction of the cost and a much higher ROI. So prioritize your ‘splurge spending’ for novelty items you really want, and cut costs elsewhere by using quality materials that will last.


3. Prioritize the Layout

If your bathroom feels crowded or needs a change, make sure the layout is user-friendly. For example, check the space available to open doors and cabinet drawers. Also, consider the placement of outlets, and leave room in your budget for ventilation.

A bathroom with more space and a more spacious layout will have a much higher ROI than a crowded bathroom with expensive materials. Of course, bathrooms are more about function than style, but having the best of both worlds is always the goal.


4. Find Things you can DIY

You don’t have to contract out all the bathroom remodel work. If there are things you can do, save money on labor and do it yourself. For example, replacing hardware is simple, as is switching out the faucet. Think about what else you can handle and reduce labor costs wherever possible to have a greater ROI.


The Benefits of a Bathroom Remodel

No matter your bathroom remodel ROI, there are many benefits of remodeling a bathroom, including the following:


1. Enhanced Safety

If your bathroom is older, it might not be up to code and could potentially have hazards. Remodeling your bathroom can remove mold and mildew, improve the flooring, take care of leaky faucets, and reduce the risk of slipping.

Today’s technology has greatly advanced from prior years, and remodeling your bathroom will not only enhance its appearance but ensures everyone’s safety too.


2. Save Money

It sounds crazy that you could save money by spending money, but it’s true. Installing energy-efficient toilets or water heaters can reduce the use of your home’s utilities, saving you money on your bills and increasing your home’s value. In addition, buyers love energy-efficient appliances, so the more you have in place, the more attractive your home will become.


3. Creates a Space for Relaxation

You might not think of the bathroom as a place to relax, but where is the first place you go when you get home or before you go to bed?

You likely spend some time in the bathroom getting ‘unready’ from the day. When your bathroom is modern and aesthetically pleasing, it will help you relax more and even help you sleep better. This is especially true if you add a touch or two of luxury throughout the room.


4. Improve Functionality

If your bathroom doesn’t feel functional, remodeling it can help tremendously. Whether you make it more spacious or add more storage, the more functional the room is, the better it is for the whole household and your resale value.


5. Add Value to your Home

Even minor renovations can improve your home’s value. For example, a fresh coat of paint, a new faucet, or a new backsplash can work wonders on your home’s value. If you put in more work, such as installing a new shower or tub, new floor, and new light fixtures, you’ll see an even greater return on your investment.




Which Bathroom Remodel ROI is the Highest?

You’ll typically see the highest bathroom remodel ROI on midrange standard bathroom remodels. This is usually a cosmetic remodel but with standard-grade materials such as ceramic floor or tile, chrome faucets, and standard light fixtures.

Buying average fixtures and remodeling the bathroom to make it modern and functional usually has an ROI of around 70%.

Making accessible bathroom changes also has an ROI of around 70%. These changes may include widening the doorway, making the toilet and shower wheelchair-accessible, and adding support bars throughout the bathroom.

As you get more upscale or do a floor plan remodel, the ROI decreases, but it’s still attractive. For example, you might add higher-end faucets or lighting, add double sinks, or install luxurious countertops. If you do a floor plan remodel, you might completely change the bathroom’s layout or add a bathroom to your home.

The ROI on a more upscale remodel is closer to 55% – 56%.


How Much Can a Bathroom Remodel Increase Home Value?

No matter the bathroom remodel ROI, everyone wants to know how much a bathroom remodel increases the home value.

Typically, a bathroom remodel increases a home’s value by 3%. So a home that’s worth $600,000 will be worth $618,000.


Final Thoughts

Your bathroom remodel ROI can be as great or small as the effort you put into it. Don’t assume you need all high-end materials or have to renovate from top to bottom.

Instead, prioritize the work you do and where you spend your money. Focus on functionality, then on luxury. You’ll get more bang for your buck when you make the room as functional as possible while keeping in mind today’s trends. Don’t get too caught up in trends though – make your changes timeless so they last for years to come, and be sure to choose materials that will stand the test of time.

With the proper steps, you can have a 70%+ ROI on your bathroom remodel and enjoy a higher home value when you sell your home. The bathroom is one of the best places to focus your remodeling efforts and can be an area that pays off the most. Get started on your bathroom remodel today!