From marble countertops to a bigger tub, remodeling your bathroom has numerous benefits. But, how much will that remodel help your home value? A lot of San Francisco homeowners are still suffering from the housing market crash, which means more are updating their homes in hopes it will increase resale value. But, not all projects can yield a positive return. So before you start hiring contractors or picking out your new tub, it’s time to analyze the cost versus value of remodeling your bathroom.
Why returns matter with a bathroom remodel
If you’re not selling your home, you might think that a return doesn’t matter. But your home is an investment, and how valuable a project is should be an important consideration, especially with a costly project like a bathroom remodel. Cost versus value analyzes how much value you add to your home versus how much you spent doing the project.
While you might not be able to recover 100% of the costs, you do want to come close. Also, if you plan on selling your home in the next couple of years, a positive return is even more critical. There is no point doing repairs or upgrades if you’ll be losing money.
Bathroom remodel in San Francisco — will you come out positive?
Bathroom remodels include taking out the tile, replacing tubs and even updating the plumbing. In San Francisco, the average cost for a bathroom remodel is $21,590. But, that remodel can add up to $29,469 in value — that means a 136.5% positive return. So, yes, you will earn money by updating your bathroom.
How does that compare to the rest of the nation? The national average cost for a bathroom remodel is $19,091 and the return in value is $17,532, which means most homeowners only get back 92% in value. You may even be able to remodel your bathroom for less than the average amount. But, make sure it is quality work and hire the right contractors for the job. A shoddy remodel will not yield a positive return — regardless of what the averages are.
San Francisco, for the most part, has substantial returns on most remodeling projects. This is most likely due to the increasing market.
So, if you have been on the fence about updating your home, now is the time. You may even find it easier to get a home improvement loan, because most loans are based on the value of your home after the project.
Top image credit: Moroso Construction