How much value does a renovated bathroom add?

While it’s incredibly hard to calculate with so many variables involved in a sale of a property, some studies have suggested homeowners could see an average return of around 62% on their bathroom renovation. As just mentioned, this depends on many factors including the extent and quality of work completed on the project.

Simply making a few cheap additions or redecorating may not give you the return you hope for. However, if you follow the latest bathroom trends and install quality fixtures, you may be on to a great return.

The average cost of a bathroom renovation is around $21,120 according to the Housing Industry Association (HIA). This means you could see an average return of around $13,000 for your bathroom renovation. However, depending on the scope of your renovation, it could cost anywhere between $5,000 and $30,000+. 

If you have a smaller renovation budget, some good value redecorating could be the key. If you want to want to see a bigger return, you could go as far as building an additional bathroom.

So, where do you even begin on your bathroom renovation adventure? Whether you're a seasoned pro or this is your first project, it's best to do your research, follow a plan and create a budget before you start.

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Before you begin, it's important to check the local laws for any planning and approvals required by your local government. Conducting work on your home without planning permission can cause serious setbacks and costly delays.

1. Survey, assessment and design

Will it be DIY, or will you use a designer? Either way, get an energy assessor to survey your bathroom and the rest of your home to suggest areas for improvement.

An energy-efficient property will score points with potential buyers and could make you eligible for government grants. This will contribute to your overall bathroom renovation budget planning and help you calculate how much value a renovated bathroom adds.

2. Permissions

Does your local council need to approve your planned renovations before you start? Sometimes even the smallest adjustments to your home need planning permission from your local council. Visit your local council office with your plans to find out.

3. Building work

Make sure that any professional help you do hire has up to date licences for insurance and safety purposes. Specialised work on gas, plumbing and electrical will need to be signed off by a licenced professional if it's to pass third party inspections.

4. Certifications

To make it easier to sell your home, you can get the renovation work certified by an inspector. This can be your local council building inspector or a private agent. An inspection report will build trust with buyers and will put their minds at ease that your renovation work is legitimate.

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So what kind of bathroom remodelling will bring you the greatest return? It's a good idea to speak with your local real estate agent to find out what the local market is demanding. However, the following methods are popular ways to spark the interest of potential buyers and increase the value of your home.

Add another bathroom

It may sound drastic, but this is a sure-fire way to increase the value of your home. This is one of the first things buyers look at in the property listings – the number of bathrooms and bedrooms.

Most buyers look for homes with a master bathroom and a guest bathroom at a minimum. If you have the budget to add even a small bathroom, it will bump you up the property listing and encourage more buyers to book a viewing.

Increase the size

Bigger bathrooms sell. Buyers are realising the joys of a larger bathroom and often look for his and her’s bathroom designs. If you can move a wall and increase the size of your bathroom to be able to include an extra basin or a bath, you'll see the benefits in your return.

Update the plumbing

Outdated plumbing can be one of the biggest drawbacks for buyers because they never know when a problem could arise. Updating the plumbing and installing new plumbing fixtures, coupled with getting a certified inspection to show the pipework is in great condition, will be a weight off the buyer's mind.

Increase energy efficiency

Improve the energy and water efficiency of your home and show potential buyers they will have smaller energy bills. Start by sealing any windows and extractor fans with silicone to eliminate draughts.

Water-saving aerated tap filters and showerheads reduce the amount of water without sacrificing the water pressure. Improving the insulation on the floor, ceilings and walls is the most effective method. Updating the windows to double-glazed or uPVC will also help with insulation.

Transform the decor

If you already have quality bathroom fittings and it just needs a new lease of life, changing the decor may be enough. It's amazing how effective a new feature wall of bold tiles or painted cabinets can be in transforming a bathroom.

New flooring is also one of the most dramatic ways to transform the look and style of a bathroom. Remove outdated carpet or lino and opt for a fresh and clean tile or waterproof laminate for a modern appeal.

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With an average return of 62% on the cost of a bathroom renovation, it's obvious that a bathroom remodel is worth it in the long run if you're looking to increase your property value. If you want to get on the higher side of that average, the key is to plan ahead, do your research and use tried and tested renovation methods. By pulling it off to an exquisite standard, potential buyers are more likely to fall in love with your property turning the bidding process from a transactional one into an emotive one.