What’s the ROI of a Bathroom Remodel?

If there was one room in your house you could completely redo, which would it be?
If you answered “bathroom,” you’re in good company. The New Jersey Real Estate Network says bathroom remodels are the most sought-after home improvement. Their study looked at popular renovation search terms; those related to bathroom glow-ups took up more than half of the top 10 results.
This is also a home improvement that offers a better-than-average return on your investment. The National Association of Realtors® reports that, on average, homeowners recoup around 71% of the cost of a bathroom upgrade.
Of course, every remodeling job is different. We talked with two bathroom contractors to learn more about costs: Joseph Patrick of Lamont Brothers Design and Construction in Oregon and Bre Hance, the founder and principal designer at InHance Interiors in Los Angeles. Hance started as a one-woman firm in 2014, but has since partnered with her husband Brandon’s residential real estate investment firm to provide design and building experiences for clients in and around Los Angeles.

$5,000-100,000
Loan Amount
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6.99-25.49%
APR
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2–12 years
Terms
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660
Minimum Credit Score
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Disclaimer
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How much does a bathroom remodel cost?
This is one of those “how long is a piece of string” questions. How much it costs to remodel a bathroom depends on what part of the country you are in, the scope of the change, and whether you are looking at midrange or upscale additions.
Many people start with the Journal of Light Construction’s Cost vs Value Report when estimating how much the improvements they want will cost. Joseph Patrick says to take the JLC figures with a grain of salt. “It’s accurate for what the description says,” Patrick says. But, he cautions that most people will not opt for the exact specifications in the report. “In our market, no one wants laminate countertops,” he says, so “prices are technically accurate but deceptively low.” (Most customers prefer upscale materials like quartz, he says.)
Patrick says to use a report like this for a ground floor estimate, but to talk to local contractors to learn more about the price of the materials you want and the scope of the project you expect.
Midrange remodel
With that in mind, JLC says the cost of a midrange bathroom remodel is around $25,251. This will increase your home’s value by around $18,613 at resale, for about a 73.7 percent return on your investment.
A midrange remodel is typically one that goes a bit beyond a fresh coat of paint to include elements like updated counters or a new shower liner in an economical material.
Upscale remodel
Upscale bathroom remodels will involve high-end materials like marble and luxe features like heated floors or towel racks. JLC puts the average cost of an upscale remodel at $78,840, with a resale value of $35,591, for a return of 45.1 percent.
“You can do a kids’ bathroom or secondary bathroom remodel, or even a powder room for $15k and up,” says Bre Hance of costs in her local market. “This would be a full gut and all new materials. For a luxury primary suite with a lot of square footage, you’re looking at $30k and up, depending on fixtures and materials.”
Universal remodel
Universal design is a bathroom improvement that can make the room more accessible. JLC estimates that you will spend around $40,750 for a project that includes improvements like a zero-threshold wheelchair-accessible door, tiled walk-in shower, and a toilet with comfort height fixtures and an elongated bowl. At resale, expect to recoup about half your investment.
Upscale additions
Additions can increase your usable living space and enjoyment of the home. But, they generally offer a lower return on investment. An upscale bathroom addition, for instance, starts at $107,477 according to JLC. But, at sale, it will typically only bring an additional $34,997, a return of 32.6 percent.
Midrange additions
If you need more bathroom space but don’t want to splurge on high-end materials, a midrange addition could be the ticket. The case for a midrange addition is slightly better, too, with a cost starting around $58,586 and a return of $20,334.
Standalone and small-scale improvements
Patrick says that smaller, standalone projects tend to be more popular than massive remodels. The most popular this year with his clients has been showers and bathtubs. According to Angi.com, the average cost of a new shower is $8,205.
Smaller improvements have the advantage of costing less out of pocket. Angi estimates that a bathroom vanity installation can range from $300 to $2,000, depending on the materials and the size of the vanity.
What experts want you to know about remodeling your bathroom
Bathrooms are among the smallest rooms in our homes, but that doesn’t mean you can’t make big mistakes updating this space. Knowing what pitfalls to avoid can help ensure a room you are happy with and the best possible ROI on your bathroom remodel.
Hance says that the biggest errors involve planning a bathroom remodel piecemeal. “Picking materials only as the contractor needs them [is the most common mistake],” she says. But, this is a blunder that’s easily remedied with a little forethought. “Plan, design, and budget before you start construction. This will ensure you stay on budget and timeline, and give you some control making sure delays won’t hold up your project.”
She recommends you purchase everything you’ll need at the beginning and hold it in your garage. If you are doing a larger scope project or don’t have storage space at home, she says to talk to your contractor about the use of a storage unit or receiving warehouse.
Patrick says to consider not just the total cost and potential return when remodeling a feature in your home, but also how long you plan to be there. “Most remodels you pay for today don’t net money tomorrow. If you’re going to sell your house in three years, don’t remodel.”
Instead, he says to make improvements on a place you plan to stay in for a decade or more. You will get use out of the improvement and also be able to net more when it comes time to sell than you might have if you hadn’t remodeled.
How to pay for a bathroom remodel
Most homeowners recoup at least some of the cost of a bathroom remodel when they sell their homes. But, first, you have to come up with the funds for the job. There are a few options available, each with its own benefits and drawbacks.
Home equity financing options
The first place most people look is the equity they have in their homes. This is the portion of your home’s value owned by you instead of the bank. You can borrow against it when you need extra cash for projects that can increase your home’s enjoyability and value. Some opt for a home equity loan, which is a lump sum loan using your equity as collateral. Others prefer the flexibility of a home equity line of credit (HELOC). However, be sure you are aware of any fees associated with a HELOC, as well as time limits on using the funds. A third option is a cash-out refi, which replaces your original mortgage and refunds any funds not used on the original loan to you.
These options can provide benefits like lower interest rates, but there are a number of caveats to them all.
- When using your home equity, that collateral can be at risk if you are unable to repay the loan.
- You will generally need at least 20% equity before the bank will let you draw on it.
- You’ll also need to meet strict credit score and income requirements.
- Home equity loans require extensive paperwork and can take a while to fund.
Personal loans
Because of this, many people also look into personal loans. A personal loan is secured by your credit score and income, so you are not putting your primary residence on the line. They can fund a lot more quickly, too. Most loans through Acorn Finance are funded in days instead of weeks or months.
How Acorn Finance can help
If you decide to fund your bathroom remodeling project with a personal loan, Acorn Finance makes it easy. We partner with over a dozen lenders, so you can see multiple offers side by side and pick the one that’s right for you.
Our lenders are a mix of national banks and nonbank lenders who are able to work with borrowers who may not qualify for traditional bank loans but still have projects to fund. We carefully vet every lender we feature on our site for trustworthiness and good lending practices. For instance, we will not partner with lenders who charge application fees or fees for paying off a loan ahead of schedule. We want you to get the best value for your money.
Curious about ways to fund the bathroom of your dreams? Preapproval takes just minutes and, because it does not involve a hard pull on your information, does not affect your credit score. Check out your offers today.
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