When planning your basement remodel, you certainly should consider return on investment. One of the best ways to maximize this return is to include a bathroom in your finished basement.
Consider home prices in your neighborhood. Other things being roughly equal, how much of a premium are homes with more bathrooms demanding? How about a 3 bedroom, 2 bath home versus a 3 bedroom, 3 bath home? Or a 4 bedroom, 2 bath versus a 4 bedroom, 3 bath home?
Including a Bathroom in Your Finished Basement Really Pays Off
The NAHB conducted a study that clearly demonstrates the value of additional bathrooms:
“When 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.
For example, starting with a home that has only one bathroom, an additional half bath will increase the value of a standard two-bedroom home by 11.5 percent, a standard three-bedroom home by 12.0 percent, and a standard four-bedroom home by 12.5 percent. The greater the disparity between beds and baths, the more there is to gain (in percentage terms) by adding an additional bath. One way to interpret this is that, when there is an excess of bedrooms over bathrooms, an additional bathroom makes the bedroom more valuable.”
For more details on this study click here.
Big Returns on Basement Finishing Investments
Depending on your home, you’re looking at an average increase in the value of your home of between 10 and 20 percent. On a $200,000 home, that’s an additional $20,000 to $40,000! This could more than pay for your entire finished basement.
The numbers don’t lie. Investing in a finished basement with either a half bath or full bathroom can provide a great return.