How much value does a bathroom add?

Whether you’re getting ready to sell your home or you just need a new bathroom for practicality’s sake, bathroom additions can increase your home’s resale value.  Generally, a midrange or luxury bathroom will net an ROI of up to 55%, it will depend on the size and extent of the renovation. 

Bathrooms come in different sizes, which of each adds a different value. There are also different features and elements to a bathroom (showers, tubs, mirrors, lights) the quality of which affects the cost to renovate and your ROI accordingly.

What to consider before adding a bathroom

Before you embark on a bathroom addition project, take into account some of the situational factors that may determine the overall return on investment you can expect from a new bathroom.

• Evaluate your current situation: Before adding another bathroom, consider how many bathrooms your home currently has. If it already has a sufficient number of bathrooms for its size and layout, consider whether the addition aligns with your long-term plans and potential resale value.
• Calculate the overall cost: The cost of adding a bathroom can vary significantly based on factors such as the type of bathroom (half, full, three-quarter), the materials used and the complexity of plumbing and electrical work. Half baths are generally cheaper to install than full baths, but their return on investment (ROI) might not be as substantial. 
• Define your goals: Before adding a bathroom, clarify your objectives. A full bathroom provides a comprehensive bathing experience, a half bath adds convenience for guests, and a three-quarter bath offers a balance between the two. Your choice should align with your family’s needs and potential buyer preferences.
• Determine the location: The location of the new bathroom is a critical consideration. Will the bathroom be added within an existing space, or will you need to build a new room like an attic? Utilizing an existing space can help reduce costs and simplify the construction process. Evaluate your home’s layout and consult with professionals to determine the most suitable location for the bathroom addition.
• Consider future resale value: While adding a bathroom can enhance your living experience, it’s also important to think about the potential impact on your home’s resale value. A well-designed and strategically placed bathroom can increase your home’s market appeal, especially if it addresses the needs and preferences of potential buyers. However, not all additions are smart choices for your neighborhood or market. Research the preferences of buyers in your area or have a real estate agent perform a CMA.

What’s the average added value of a bathroom?

The costs and benefits of an added bathroom depends on and what type of renovations you do. If you’re remodeling an existing bathroom, the final cost hinges on the condition of fixtures and the desired luxury level. Transforming a room into a bathroom involves plumbing, electrical work, materials, and labor for custom elements like tiling. You might pay more if you need to choose expensive materials, like imported marbles, or make any extra customizations, like a cast-iron tubbed shaped like a seashell. 

The average value of a bathroom also depends on whether it’s a half bath addition, or a three-quarter bath upgrade. Here’s a breakdown:

Full-bathroom value

A full bathroom remodel involves a comprehensive transformation, including fixtures, plumbing, lighting, and tiles. The investment can vary widely depending on factors such as custom work, materials, and existing conditions. A basic remodel starts at around $2,500, while an upscale remodel could cost $29,200. Despite the expense, an upscale remodel can yield around 48.8% return in resale value. Of course, if you have to add another room onto your home, the costs go up significantly.

Half bath value

Adding a half bath, or powder room, is a strategic way to enhance property value and functionality. This addition typically includes a toilet and sink and is ideal for those seeking value without extensive construction. A well-designed half bath can increase home value by 5% to 10%. Costs vary based on plumbing, electrical work, and design.

3/4 bath value

A three-quarter bath, with a shower, toilet, and sink, bridges the gap between a full bathroom and a half bath. Costs fall between half and full bath remodels. A well-executed three-quarter bath upgrade contributes to your home’s overall appeal and value, but the specific ROI depends on individual circumstances.

Additional bathroom upgrades and costs

If you don’t need a new bathroom addition, other upgrades may add value to your home.

• Shower remodel: Updating your shower is a cost-effective way to add luxury. Costs range from $4,000 to $12,000, with prefabricated kits starting at $500.
• Walk-in shower: Costs vary between $8,500 and $20,000, with tile installation ranging from $1 to $25 per square foot.
• Wet rooms: These tend to be very expensive due to tile and waterproofing costs. Converting a bathroom to a wet room averages $10,000 to $20,000 and offers an investment return of 56% to 70%.

Tips for adding bathrooms to sell a house

Here are some tips to keep in mind when considering bathroom additions to sell your house.

• Prioritize the primary bathroom: When aiming for the best ROI, focus on the primary bathroom, especially a master bath connected to the main bedroom. This is far more attractive to buyers than a simple half-bath off a guest room. However, retrofitting a master bath might not be feasible for all homes. Some houses are designed in a way that adding a bathroom isn’t straightforward. 
• Include a tub: If your current bathroom only features a shower, consider adding a tub to the new bathroom. Many potential buyers, especially families with young children, prefer having at least one tub in the house. The presence of a tub provides versatility and appeals to a broader range of buyers.
• Craft a suite experience. For the highest ROI, consider creating a luxurious ensuite full bathroom complete with a walk-in closet. This type of addition can greatly enhance your home’s market value. However, it’s crucial to balance costs and not over-improve your property relative to your neighborhood’s standards. Striking this balance will ensure that your investment pays off in the long run.
• Consider a free-standing tub. While tub/shower inserts that attach to the wall might be more budget-friendly, a free-standing tub surrounded by elegant tile can make a lasting impression on buyers. This choice exudes a sense of luxury and can set your home apart from others on the market.
• Stick to neutral colors. When designing your new bathroom, opt for neutral color schemes. Buyers want to envision themselves in the space, which can be challenging if the bathroom has a bold or eccentric color palette. Neutral colors create a blank canvas that potential buyers can imagine personalizing to their tastes without the need for major renovations.
• Explore the bathroom/laundry room combo. Consider a creative approach by combining a bathroom with a laundry room. This combination not only maximizes space but also offers added convenience for potential buyers. Buyers often respond well to these space-saving solutions.

Is a new bathroom the right investment?

Strategically adding bathrooms to your home can significantly increase its appeal and value. Choosing the right design elements, such as free-standing tubs, tub/shower combinations and neutral colors, can further enhance your home’s attractiveness to potential buyers. Lastly, don’t hesitate to explore unique ideas like a bathroom/laundry room combo, which can set your home apart in a competitive market. 

By carefully considering these tips, you can make your house more appealing to buyers — and ultimately, increase its value. Just make sure your investment in a new bathroom is worth it!

FAQs

Here are more details about the added-value of bathrooms to keep in mind whether you’re looking to remodel or buying your first home.

Q: What is the average cost of adding a bathroom?

The cost of adding a bathroom can vary greatly depending on factors such as the scope of the project, materials used, and labor costs. On average, homeowners can expect to spend between $5,000 and $25,000 for a basic bathroom addition. However, more luxurious or extensive projects can exceed $50,000.

Q: How much value does adding a bathroom to a home bring?

Adding a bathroom to a home can significantly increase its value. On average, a well-designed additional bathroom can provide a return on investment (ROI) of over 50%. The exact value added depends on various factors such as location, quality of construction, and the overall housing market.

Q: Does the type of bathroom affect the value added?

Yes, the type of bathroom can influence the value added. A full bathroom, consisting of a toilet, sink, and a bathtub or shower, typically adds more value than a half bathroom (powder room) with just a toilet and sink. However, the value added may also depend on the specific needs and preferences of potential buyers in a particular housing market.

Q: Does the location of the bathroom within the home matter?

The location of the bathroom within the home can impact its value. Ideally, the bathroom should be conveniently accessible and located near bedrooms or common areas. A well-placed bathroom that enhances the flow and functionality of the home generally adds more value than one in an awkward or inconvenient location.

Q: Do high-end fixtures and finishes increase the value added? 

Upgrading to high-end fixtures and finishes in a bathroom can enhance its appeal and potentially increase the value added. Features such as quality faucets, stylish tiles, and modern bathroom ceiling lighting can attract buyers and contribute to a higher perceived value. However, it's important to consider the overall market and the potential return on investment of these upgrades.

Q: Are there any other considerations when adding a bathroom to increase home value?

Yes, several additional factors should be considered when adding a bathroom, especially if you’re trying to sell your home. These include proper permits and compliance with local building codes, hiring reputable contractors, maximizing space utilization, ensuring adequate ventilation, and maintaining a cohesive design aesthetic with the rest of the home.

Q: Should I add a bathroom to my house?

For long-term homeowners, the personal enjoyment of a bathroom improvement may outweigh the financial return. A luxurious master suite can provide relaxation and stress relief. However, homeowners should carefully weigh upfront costs against potential benefits. While a bathroom remodel can significantly enhance the resale value, it’s essential to choose upgrades that align with your lifestyle and long-term plans.