Every home seller wants to get the best possible price for their property, and most will look for effective ways to increase property value before putting it on the market. While there are plenty of ways to do this, renovating an outdated bathroom is often one of the top priorities—however, it can be expensive.
While it’s easy to justify the cost if you plan to live in and enjoy the property for many years to come, the decision isn’t as clear cut if you plan to sell the home in the not-too-distant future.
If you’re considering selling and want to work out whether it’s worthwhile undertaking a bathroom renovation or if it’s better to invest your money elsewhere, here’s what you need to know…
How Much Value Does a Renovated Bathroom Add and Is It Worth It?
Bathroom renovations have long been considered one of the most effective ways to add value to your home—and it’s not hard to work out why. While most buyers are happy to overlook things like a bold colour scheme or an overgrown garden which are simple, low-cost fixes, they may not be as forgiving of an outdated bathroom.
Bathrooms are an important high-traffic area of the home which are considered one of the most expensive areas to renovate. Buyers will take this into account when deciding how much they’re willing to pay for the property, and will either wipe tens of thousands off their offer, or discount the property entirely if they’re unwilling to take on the renovation themselves.
So how much value does a renovated bathroom add to the sale price of your home?
While it will depend on the individual property and quality of the renovation, it’s not uncommon for a renovated bathroom to add up to 10% to the value of a home.
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. In fact, bathroom renovations have a very high recovery rate of approximately 75% (i.e. you can expect to recoup at least 75% of your investment) and it will also boost the appeal and saleability of the property.
How much should you spend on a bathroom renovation?
To give you an idea of what you can expect a bathroom renovation to cost, the Housing Industry of Australia (HIA) estimates the average cost of a bathroom renovation to sit around the $17,500 mark, however costs can range from around $10,000 to upwards of $30,000.
It is however important to ensure you don’t overcapitalise on a bathroom renovation. Keeping costs to around 2% of the total value of your home is generally a good approach—so if your home is worth $600,000, setting your budget around $12,000 will likely get you a good return on your investment.