Bathrooms are the most underappreciated spaces in your home interiors. That’s why it’s important to consider remodeling them, given their significance. An effective bathroom remodeling is a great way to make it an inviting place for you and your family.
According to the National Association of Realtors’ 2019 Remodeling Impact Report, bathroom renovations rank fifth among popular home modifications.
These renovations are popular as they add to a home’s overall value while providing homeowners with an aesthetically pleasing space to perform their daily activities. But is bathroom remodeling a smart financial decision? Let’s discuss this in detail below.
Is Bathroom Remodeling A Smart Financial Decision?
Bathroom remodeling is a smart financial move as long as it increases your home’s value. Generally, the ROI determines whether or not a bathroom remodeling is a reasonable financial investment.
A bathroom makeover is a wonderful choice if it’s affordable and you can sell your home quickly with an appealing upgrade. You must ensure that you are dealing with a team of renowned renovation experts in your neighborhood. Let’s learn why bathroom remodeling is significant, which is described below.
Why Bathroom Remodeling is Significant
How does updating a bathroom increase your home value? A bathroom might increase a home’s value by up to 53%-58% of the renovation cost in 2022.
So, when you sell your home after a remodel, you can recover up to 71% of your expenses. However, you must remember that the actual ROI of any remodel depends on your local market and design quality.
According to Remodeling’s Cost vs. Value Report for 2022, a mid-range bathroom remodels typically costs around $27,164, while a luxury redesign typically costs $82,8822. For this reason, homeowners must prioritize some important things for bathroom remodeling, which is discussed in the next section.
Things to Consider for Bathroom Remodelin
While many bathroom renovations can increase your home value, there are some that you should prioritize over others. Here is a glance at some of the basic bathroom remodeling requirements.
- Flooring
Do you have dirty grout, or is it a direct throwback to the 1980s? If so, you may want to consider investing in new flooring. Installing porcelain or ceramic tiles is a great way to update your flooring as its water resistant and durable.
- Vanity
The vanity area is frequently overlooked in favor of bigger changes, but updating it could have a big difference. Replacing old fixtures can improve the bathroom’s overall appearance and add more water-efficient storage space.
- Cabinets
Examine your cabinets more closely and understand them from a potential buyer’s viewpoint. Do they need an upgrade?
If the answer is yes, there are a variety of options. You can upgrade the cabinets in your home with a quality remodeling project. It significantly improves the bathroom’s overall aesthetics.
- Bathtub And Shower
Unsurprisingly, upgrading the shower and tub yield the highest ROI because they are the focal points of any bathroom. You must also ensure to have at least one bathroom with a bathtub, in case you sell it, as it’s quite important for buyers.
However, bathroom remodeling is riddled with many complications that the respective contractors effectively tackle. Let’s discuss this in detail below.
Why Is It Imperative To Use A Professional To Redo Your Bathroom?
When redoing your bathroom, it is imperative to use a professional to ensure the job is done properly. DIY is more accessible if you’re considering a simple bathroom renovation.
In contrast, a contractor can do your job professionally, handle complicated improvements, and finish your project quickly. Look at a few reasons you should always hire a professional for bathroom renovations.
- Professionals can do the job correctly and to a high standard, have access to resources and expertise, have peace of mind, cost efficiency in terms of both time and money, and guarantee prompt project completion.
- A contractor is equipped to undertake challenging work. Most homeowners lack the necessary electrical or plumbing knowledge to handle complicated remodels. However, you can get a qualified remodeler to help you comprehend the intricate changes’ details and ensure nothing is missed or harmed.
- A builder provides warranties. Finally, hiring a contract entitles you to warranties on the renovation’s materials and craft. These warranties protect again the faulty installation and material flaws, which would otherwise be your sole responsibility.
Let’s discuss how to pay for your bathroom remodel, discussed in the next section.
How To Pay For Your Bathroom Remodel
A bathroom makeover is done in various ways. Homeowners may choose to use a home equity loan or line of credit, apply for a personal loan, or finance it through a no-interest credit card.
- Money And Liquid Resources
Using cash or any other liquid assets that are readily accessible is one way to pay for your bathroom remodel. You can use easily available liquid assets, such as checking and savings accounts, mutual funds, savings bonds, and certificates of deposit almost due to maturity, to pay for the entire cost of your remodel.
- Home Equity Line Of Credit (HELOC)
An alternative for financing that gives you access to a credit limit equal to the equity part of your current property is a home equity line of credit (HELOC).
Your home’s current worth and the amount of equity you have in it may affect the size of your HELOC, but this option has the advantage of flexibility. A HELOC functions similarly to a credit card because it is a revolving loan.
- Obtain A Mortgage Equity Loan
You can also take out a home equity loan for your bathroom renovation. This loan is secured by the equity you currently have in your property. In contrast to a HELOC, a home equity loan has fixed interest rates and loan lengths.
If you can pay off the entire project’s expenditures in three to five years, a home equity loan may help finance your bathroom renovation.
- Cash-Out Remortgaging
Another choice for covering the expenses of your bathroom remodel is a cash-out refinance. It’s a brand-new first mortgage and depending on when you refinance. Your new interest rate can even be lower than your current one.
Given the current low mortgage rates, you might also want to refinish your house to get a lower rate or a shorter pay-off period while simultaneously using some of the equity in your house to pay for your redesign.
Wrapping Up!
The bathroom is one of the most significant spaces in any home. It is worth mentioning that having a nice new bathroom feels wonderful. A good bathroom remodeling project is essential to selling your home at a higher price and providing you with years of happiness.
