People always want to know what's the value of a certain room in the house. How much does it add to the home, etc? Here is something different looking at from builder's point of view. What do builders think about the values? The builder's economic approach is a little bit different than most home owners. Builders are concern about their bottom line -- how much more can they make by adding certain features.
According to "How Much is A Bathroom Worth?", Paul Emrath suggests, though it's not easy to come up with the numbers because of its complexity, however, he says "that when looking at the bottom line, a half-a-bath adds approximately 10.5% of home values. And a full bath adds a 20% to its home value." Wow. That's very good.
[W]hen the number of bathrooms is approximately equal to the number of bedrooms, an additional half bath adds about 10 percent to the home’s value, and converting the half bath to a full bath adds another 9 percent, so one additional bath adds about 19 percent to the value. Below this (that is, when the home contains fewer bathrooms than bedrooms) the percentage gains associated with an added bathroom can be somewhat larger.
In dollar terms.
[F]or example, adding a half bath to a standard new two-bedroom, 1,700 square-foot single family detached home in a Northeast suburb with one full bath changes its value from $180,710 to $201,576. That’s an increase of $20,866, or 11.5 percent.
In "Cost. Vs. Value 2005," for midrange bathroom remodeling (ave. cost $10,499 and resale value $10,777), many home owners expected to recover their investment and some (102.2%). See how different the value that is. That's because builders are in the wholesale biz, and homeowners not. Homeowners pay retail. This comparison is only to give you a different way of looking at the value of a home feature. And by no means, you shouldn't expect more than what it is worth.
In a slow market, a remodeled bathrooms can certainly add more values to your home. You expand the pool of wannabe buyers. Because many of today's buyers want that "move in" condition.
* NAHB: How Much is a Bathroom Worth?
* Cost Vs. Value Report [Remodeling Online]
