Updating your home can be a worthwhile project, especially when it comes to adding value to your home. But not all updates add value. If you’re thinking of remodeling your Chicago, IL, home you might be thinking of starting with the bathroom. After all, it is one of the most used rooms in the house and new technologies and materials (not to mention water saving fixtures) make this room a popular project. Before you start calling contractors and picking out sample, you may want to make sure you’re really going to get a return on that investment.
What is cost versus value?
Cost versus value is an annual report released by Remodeling Magazine that assesses the total cost of a project and compares that cost to the amount of value you add to your home. This gives you a return on your investment percentage or ROI. Although very few remodeling projects have a cost versus value of 100%, this report gives homeowners a good sense of where to spend their remodeling dollars. After all, most home remodels cost thousands of dollars and if these projects have a very low expected return on investment, you could be investing a lot of money towards a project that may not pay you back.
What is the cost versus value for a bathroom in Chicago, IL?
There are two types of bathroom remodels defined by Remodeling Magazine: midrange and upscale. An upscale bathroom remodel, like a master bathroom, incorporates a new shower, tub, double-sink vanity, ceramic tiles, electrical, windows, and all related supplies, labor and permitting. In Chicago, you can expect to spend about $51,675 in an upscale bathroom remodel and the current marketplace suggests that you will add only $29,051 in value to your home (about 56%). A midrange bathroom remodel is smaller in scale but still updates the shower/tub, vanity, flooring, electrical, exhaust, etc. In Chicago the average cost of this type of remodeling project is around $16,406 with an expected return of $10,020 in value (or 61%). These expected returns are slightly lower than the national averages, which might suggest that the cost to remodel is higher in Chicago and the perceived value is slightly lower.
How to decide
If you are remodeling your bathroom strictly to sell your home, you may want to consider the cost. Most real estate agents will advise than an updated bathroom helps potential buyers see themselves in the home, however you may not want to do major renovation or add expensive fixtures. If your bathrooms are in good working condition and simply need to be staged, a professional home stager might advise new linens, a thorough cleaning, new paint and possibly updating the faucets – these are easy to do and don’t require a huge investment. If, however, you are remodeling and planning to stay in your home for a few more years, you may be able to recoup the value as home values rise. It is always best to consult a real estate agent before modifying your home for sale. An agent can compare the market and let you know how much value you’ll get back based on current market conditions.
Top image credit: Lugbill Design