Homes are the biggest investment many of us make. So, when it comes to a bathroom remodel, it only stands to reason homeowners think in terms of what return will they get back on dollars invested in their home.
It’s a simple question with any bathroom remodel. However, the right answer can differ greatly depending on your perspective. The value of any bathroom remodel has both objective and subjective measures
Bathroom Remodel Reality
Many homeowners are curious about what increase in the value of their home will result if they invest in a home improvement. Practically speaking, all home improvements increase the value of your home. But in nearly all cases, the cost of a home improvement will be more than the return you will receive when you sell your home.
A good illustration of this is an annual national study, segmented by region with representative cities within each region. Madison is one of the selected cities in the annual Cost vs. Value Report, published by Hanley Wood, LLC. The report includes an average bathroom remodel as well as an upscale bathroom remodel.
In addition to the bathroom remodel, the report reviews over thirty popular home improvement projects. It measures job cost, resale value and percent of cost recouped. Madison’s 2015 figures show the percentages of invested dollars recouped ranged from about 42% for a home office remodel to 92% for garage door replacement. In past years, when the housing market was skyrocketing, some home improvement investments actually had value above the actual installment costs upon resale. When this happens, it is a reflection of a temporary market condition. It is important to remember this data is from a survey and as a result represents only a snapshot in time.
However, the bottom line is the return on investment dollars will fluctuate with the home prices and there is no guarantee of your return on investment. According to the report, a mid range bathroom remodel will return 62.5% of your investment. An investment in an upscale bathroom remodel will return 53% according to the report. In other words, the upscale investments are for you, and you alone. Other people will pay for a bathroom remodel, but you pay for the “bells and whistles” you like personally.
Our advice when planning a bathroom remodel is focus on enjoying your home more and increasing the livability. While you will recover some of your investment, the real value is in day to day living.
Subjective Value With Bathroom Remodel Projects
Setting aside the dollars and cents, think about what you need – or want – in your bathroom remodel. Assuming the changes you are considering are affordable, the following issues are the primary motivation for nearly all bathroom remodel projects in which we are involved –
- To improve utility of a portion of a home
- To improve enjoyment of a home
- Updating fixtures & floor plans
- Upgrading fixtures & floor plans
- Physical need – accessible design & fixture additions
- You need a different home – but like where you live or have a lot of equity in your home
Sims Perspective On A Bathroom Remodel – What You Value Others Value
Whatever you choose to call it, remodeling, upgrading or updating, the overriding thought should be how can I improve our home? The result of any bathroom remodel should be immediate enjoyment of your home as a result of the change. In most cases, if you enjoy your home more, whoever purchases your home in the future will value what you added.
Sims Remodeling has a remodeling planning guide and contractor selection guide available to help you move forward confidently in your bathroom remodel project. We have dealt with many bathroom remodel projects over the years and look forward to helping you create a list of exciting bathroom design ideas. We can help your bathroom remodel fit your family and its needs. Our goal is to deliver great value.
Sims Remodeling provides bathroom remodel services to Madison WI, Cottage Grove, Sun Prairie, Deforest, Waunakee, Middleton, Verona, Fitchburg, McFarland, Stoughton and all other communities in south central Wisconsin.
Please call us a 608-825-4500 or email us and our professional team will help you with your bathroom remodel in Madison WI.