If you’re considering a bathroom renovation, you may be wondering what that investment will do for your home value. There are many pros and cons to renovating your bathroom, and as with any decision, there are trade-offs. However, if done correctly, a small bathroom renovation can have a significant impact on the resale value of your home.
A bathroom is one of the first places potential buyers look when viewing a house. If they see dated tile or shabby fixtures, they know right away that you don’t take care of your property. On the other hand, if they see an upscale bathroom with neutral walls and fixtures that work together in harmony, they know you’re someone who takes pride in your home.
Most real estate agents recommend bathroom renovations as a smart financial move! If that sounds like something that interests you… read on to learn how a small bathroom renovation will increase its value!
How much does a bathroom renovation increase home value in Sydney?
Depending on the scale of the renovation, you could see a return on your investment of up to 75%. For example, if you spend $20,000 on a renovation, the average return on investment would be about $15,000. However, this figure varies depending on the area of Sydney you live in, the size of your home, and the extent of the renovation. The great news is that, unlike some other types of renovations, you’re unlikely to lose a significant amount of money with a bathroom renovation. A bathroom renovation definitely boosts the appeal and saleability of the property.
Why does a small bathroom renovation increase home value?
A small bathroom renovation can increase your home’s value in two ways. First, you can improve the perceived value of your home. A bathroom is one of the first rooms potential buyers see when viewing your home, and it’s one of the rooms buyers are most concerned about. That’s why a small bathroom renovation can increase your home’s perceived value. You can also improve your home’s actual value by adding square footage. If your renovation is significant enough, you can add a new room to your home. Adding square footage is one of the biggest ways to increase the value of your home. A small bathroom renovation is likely to be less than $20,000. This is a great way of adding value without breaking the bank.
What will increase your home’s resale value?
A larger bathroom – If your home’s current bathroom is too small for your needs, you may want to expand it. This will not only increase your home’s value, but also your quality of life.
A master ensuite – This is one of the most expensive renovations you can do, but it’ll be worth it in the long run. Buyers love to see an ensuite in a master bedroom, and will pay a premium for it.
A trendy feature – Traditional homes are more affordable to buy, but are often less desirable to future homebuyers. A trendy feature such as a freestanding tub or a modern vanity can help modernize your home, making it more desirable to future homebuyers.
What renovations won’t contribute to your home’s resale value?
A renovation that’s only going to appeal to you and your family may not be the best investment. For example, an outdoor kitchen is a great addition for you and your family, but it won’t do anything for your home’s resale value.
A modern kitchen – Yes, an older kitchen can be updated with new cabinets, countertops, and appliances. However, buyers are more concerned with the functionality of the kitchen than its appearance. A modern kitchen is often too impractical for a family to use, making it a bad investment.
A basement or attic conversion – Adding a new room to your home can be a great investment and add significant value, but it can also be very expensive. If you’re going to undertake this type of project, make sure you have a plan for finishing the room.
How much should you budget for a bathroom renovation that increases resale value?
Depending on the extent of the work you do, you may only need to budget $15,000 to $20,000.
Final words: Is renovating your bathroom worth it?
A bathroom renovation is a great investment. You can not only improve your quality of life, but also increase your home’s value. A small bathroom renovation can be done on a budget, so it doesn’t need to be an expensive undertaking. If done correctly, a small bathroom renovation can increase your home’s resale value. So, if you’re considering a renovation, take a look at your options. You may find yourself pleasantly surprised with the outcome.
