Last updated: January 03, 2025

Home Ownership

How a bathroom remodel can increase your home value

Woman begins a bathroom remodel project attempting to increase her home value.

A bathroom is an essential part of any home, but one that is often overlooked. Updating this space or adding a new bathroom may add value to your property. 

You want your bathroom to be both functional as well as stylish. A well-thought-out bathroom remodel or addition may make your home more desirable to buyers if you sell it in the future.

Updating an existing bathroom

Making changes to an outdated bathroom may increase home value. To determine what needs to be done, consider the practical aspects of remodeling your bathroom. For example, ensure everything works correctly, and there are no leaks or damaged areas. If there are any problems, address these before focusing on cosmetic upgrades. 
Plumbing, structural, and electrical repairs may be costly., However, finding and fixing a problem may significantly increase the worth of your home.

Decide if you need a new layout, more room or just an update to the current design. This will help you determine your costs and budget.

If you have basic carpentry skills, you may be able to take care of small changes on your own. When it comes to tearing out walls or moving existing plumbing, you will likely need to hire a contractor.

The average cost of a new bathroom remodel can vary depending on the age of the home and how much plumbing or electrical work is required.

Where can you see the biggest return on investment?

New tiling, updated fixtures and more natural lighting may appeal to future buyers. Other upgrades you might want to consider include:

  • Adding a whirlpool bath or steam shower 
  • Installing heated floors
  • Adding a double sink
  • Installing a shower seat
  • Adding storage

When choosing colors, stick with neutrals to allow buyers to imagine themselves in the bathroom. The design should also be cohesive to the rest of the house. Avoid trendy materials and designs, which may look dated in just a few years.

Increasing the size of your bathroom, or at least making the room look bigger, is a good idea. Replacing a tub with a glass shower gives the appearance of more space. Installing brighter light fixtures or adding wall sconces around the mirror to reflect light is another way to make the room feel larger.

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Does your bathroom need an upgrade? Discover® Home Loans can help with low, fixed rates on home equity loans and $0 costs due at closing.    

Adding a new bathroom

If you have unused space and not enough bathrooms, you may want to add a second or even third bathroom to your home. This is usually a complex project that requires a contractor. However, an extra bathroom may add value to your home and help it sell in the future.

To determine if this project is feasible, choose what kind of bathroom you want to add and consider hiring an appraiser to estimate how much value it may bring to your home.

If you have equity in your property, you may want to use a home equity loan to pay for a bathroom remodel or addition. You can receive a lump sum of cash to fund your project and pay it back in installments, typically at a fixed interest rate.

Whether you decide to update a current bathroom or add an extra room, potential property value is just one factor to consider. A new or upgraded bathroom should enhance your life in your home until it’s time to move on.

Talk to a Discover Personal Banker today at 1-855-361-3435 to learn about a home equity loan and whether it makes sense for you. Or, apply online in minutes. We’ll show you what product options, terms, APRs, and monthly payments are available to you.

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For example, if you borrowed $60,000 for a 20 year term at 8.86% APR, your fixed monthly payments would be $534.45.