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Is the Cost of Adding a Bathroom Worth It?

An additional bathroom can add value to a house you're about to sell. Homeowners should take steps to minimize the cost of the project so that they can gain the highest possible return from it.

An additional bathroom can add value to a house you're about to sell. Homeowners should take steps to minimize the cost of the project so that they can gain the highest possible return from it.

Home sellers often consider adding a bathroom to their house as a way to make a stronger pitch to buyers. But before you go about putting in the new bathroom, you have to determine whether the costs you will incur make it a worthwhile project.

That decision depends on the cost of the new bathroom and how much it will help elevate the value of your house. Let’s take a look at how do decide whether adding a bathroom is worth it if you’re selling your house.

Factors that Affect the Cost of Adding a Bathroom

Location Within the House

You can save a lot of money by putting the new bathroom in the right location in your house. The closer a bathroom is to existing plumbing, the cheaper it will be to install and vice versa. Usually, the plumber you hire will recommend building the new bathroom in an area of the house that already has pipes and other paraphernalia running through it.

Type of Bathroom

When homeowners consider adding a bathroom, they’re usually thinking of a full bath. That’s a bathroom that has a shower, bathtub, sink, and toilet. But that’s not the only option you have. You can cut down on costs with smaller bathroom types. A half bath features just a sink and toilet. A three-quarter bath is a half bath that also has a shower.

Type of Fixtures You Choose

The bathtub, sink, and shower are the main elements of the bathroom. But there are many more accoutrements that go with them to create a complete bathroom. That includes things like cabinets, tiles, showerheads, faucets, bathtub installs, etc. The cost of adding a bathroom to your house will depend on the quality of materials you choose when picking out all of those elements.

Average Cost of Adding a New Bathroom

Now that we know what factors influence the cost of adding a bathroom, let’s take a look at how much the average expenses are.

According to Remodeling’s 2019 Cost vs Value report, the average amount that homeowners spend nationally to add a bathroom is $47,427. The resale value is $28,726, which means that you would recoup 60.6% of the value of an additional bathroom.

These numbers can vary significantly from region to region. In the Pacific region, for example, you can recoup almost 68% of the cost of an additional bathroom. In that part of the country, adding a bathroom costs $55,051 and the resale value is $37,264.

Is a New Bathroom a High-ROI Investment?

The first thing you need to ask yourself while selling your house is how appealing it is to buyers in its current condition. The answer will depend both on the house itself as well as the dynamics of the local real estate market.

Every homeowner’s dream is being able to sell a house “as is.” That means not having to make any repairs or renovations in preparation for the sale. But that isn’t always the best way to go about selling your house. If you feel the need to make some renovations to appeal to buyers, then adding a bathroom can be a good idea.

The other factor is the state of the real estate market in your city. Sellers who find themselves in a seller’s market won’t have to make too many changes to their home to find a buyer. But if you’re in a buyer’s market, then you have to take measures to stand out from the rest of the sellers. In that case, throwing a well-designed additional bathroom into the mix can be beneficial.

How to Maximize the ROI of an Additional Bathroom

There are right and wrong ways to go about adding a bathroom to your house. Once you’ve decided that you need to put in a new bathroom, then there are a few measures you can take to get the highest possible ROI out of it.

Setting the right budget for the project is key because there is a point of diminishing returns with renovations. We see that the Cost vs Value projects about a 60% return on the money invested in adding a bathroom. That may be true if you spend about $40,000 on the bathroom, but not necessarily if you go all out and spend $80,000 on it. So make sure to stick to a tight budget when setting out to add a bathroom to your house.

Homeowners can make the additional bathroom appear more stylish by choosing the right finishes and accessories. If you spend some time looking for places selling fixtures at discounts or can negotiate prices, then you can add a bathroom that looks high-end for a lower price than you’d expect.

If you’re in doubt about whether an additional bathroom will help sell your home, then consulting with a real estate agent can help you make the right decision. Agents understand what buyers are looking for and will be able to guide you on ways to make your house more appealing to the local market.

Clever Partner Agents help sellers with decisions regarding renovations and also recommend local vendors for the job. That way you can quickly connect with contractors in the area who can help you with things like adding a new bathroom to your house.

Partner Agents provide home sellers with a full suite of services for just $3,000 or 1% on homes over $350,000. Fill out your details on this page to find a Clever Partner Agent in your city to help you decide what renovations to make so that your house sells for top dollar.

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Andrew Schmeerbauch

Andrew Schmeerbauch is the Director of Marketing at Clever Real Estate, the free online service that connects you top agents to save on commission. His focus is educating home buyers and sellers on navigating the complex world of real estate with confidence and ease. Andrew has worked on projects for the United Nations and USC and has a particular passion for investing and finance. Andrew's writing has been featured in Mashvisor, L&T, Ideal REI, and Rentometer.

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