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Is It Worth Doing a Bathroom Renovation Before Selling Your Home in Australia?

Is It Worth Doing a Bathroom Renovation Before Selling Your Home in Australia?

, by Aline Melo, 7 min reading time

When it comes to selling your home in Australia, first impressions are crucial. Buyers often decide whether a property is worth their time based on its appearance and condition, and the bathroom is no exception. While home renovations can be an excellent way to increase a property’s appeal and value, it’s important to ask: Is it worth doing a bathroom renovation before selling your home?

Photo:Zure

In this article, we’ll go through some of the benefits and considerations of renovating your bathroom before putting your house on the market, to help you make an informed decision.

The Financial Impact of a Bathroom Renovation

A bathroom renovation can be an appealing prospect for homeowners looking to sell, but it’s important to understand the financial impact of such an investment. Renovating a bathroom can be expensive, and without a clear understanding of the return on investment (ROI), the project could end up costing more than it benefits.

According to the Housing Industry Association (HIA), bathroom renovations in Australia can yield a solid ROI of up to 75%. This means that for every dollar spent on your bathroom renovation, you could see up to 75 cents in return when you sell your home.

In highly competitive real estate markets like Sydney, Melbourne, and Brisbane, the return could be even higher, especially if your home is in a desirable area.

However, the ROI can vary depending on the scope of the renovation.

Small, cosmetic updates may offer a better return than a full-scale remodel. For example, replacing outdated tiles, installing modern fixtures, or upgrading lighting can be a relatively low-cost option that still provides noticeable results.

Understanding the Costs of a Bathroom Renovation

Renovating a bathroom can be a significant financial undertaking, with the average cost in Australia ranging between $10,000 and $25,000, depending on the size of the bathroom and the quality of materials chosen. For high-end finishes or larger spaces, this figure could go even higher.

To ensure that your renovation remains within your budget, it’s essential to have a clear understanding of the costs involved. Some of the key expenses to consider include:

  • Labour: Skilled tradespeople, such as plumbers, electricians, and tilers, can add up to a significant portion of the renovation cost.
  • Materials: The cost of materials, such as tiles, cabinetry, flooring, and fixtures, can vary widely. Opting for premium materials may increase costs but could boost your home's appeal to higher-end buyers.
  • Design and Planning: If you're working with a designer or architect to create a new layout or maximise space, there will be additional costs for their services.
  • Permits: Depending on the scale of the renovation, you may need to obtain permits. These fees can also add to the total cost.

It’s important to factor in these costs and weigh them against the potential increase in your property’s value. A bathroom renovation will only be worthwhile if it adds enough value to justify the expenditure, particularly in a competitive real estate market.

Does a Renovated Bathroom Make a Difference to Buyers?

One of the key considerations when deciding whether to renovate your bathroom before selling is how much it will appeal to potential buyers.

 Photo: Remodelling NZ

In recent years, homebuyers in Australia have become increasingly focused on quality, style, and functionality. A modern, updated bathroom can make a significant impact on buyers and influence their decision-making process. However, there is always people looking into buying older houses to have the opportunity of owning their first house in Australia.

Buyer Expectations in Today’s Market

In cities like Sydney, Melbourne, and Brisbane, the demand for homes with modern amenities is high. Buyers are often willing to pay a premium for properties that have been recently renovated or feature high-quality finishes, especially when it comes to the kitchen and bathroom. Only by replacing an old and out of date bathtub, which costs approximately $2.000, you can exponentially increase the house value. 

A dated or poorly maintained bathroom, on the other hand, can significantly reduce the appeal of your property and may result in a lower sale price.

According to Domain's 2023 Real Estate Trends, many Australian homebuyers are specifically looking for "move-in ready" properties that require little to no work.

Photo: Sweet Monday

Homes with outdated bathrooms or obvious maintenance issues may scare away potential buyers or lead to lower offers. As such, a bathroom renovation could be a smart investment to help you attract the right buyer and increase your home’s value.

What Kind of Bathroom Renovation Will Appeal to Buyers?

Not all bathroom renovations are created equal. When considering a renovation, focus on upgrades that enhance the bathroom’s functionality and aesthetics without going overboard. A high-end luxury remodel may not always yield the best return, especially if it’s not in line with the rest of your home or neighbourhood.

Some smart, budget-friendly bathroom upgrades that can have a big impact on buyers include:

  • New Fixtures and Hardware: Upgrading old taps, showerheads, and towel rails can make a bathroom feel fresher and more modern.
  • Improved Lighting: Installing bright, energy-efficient lighting can make the space feel larger and more welcoming. Led mirrors can be the solution in this case.
  • Modern Tiles and Toilet: Replacing outdated tiles and toilet with neutral, contemporary designs can instantly refresh the look of your bathroom.
  • Storage Solutions: Adding or improving storage options, such as shelves, cabinetry, or vanities, can make the space feel more functional.
  • Fresh Paint: A fresh coat of paint in neutral tones can brighten the room and make it feel more inviting.

You don’t need to undertake a full remodel to achieve these results, but focusing on these key areas will help you get the best value for your investment.

The Risks of Over-Renovating

While bathroom renovations can increase the value of your home, it’s important to avoid over-investing in the process. Over-renovating can be just as risky as not renovating at all. If your bathroom renovation pushes your property’s value significantly higher than the surrounding homes in your area, you may not see the return on your investment that you expect.

For example, if your home is located in a suburb with average property values, investing in a luxury bathroom renovation might not increase your sale price in line with the cost of the renovation.

In Western Australia, for example, the houses are all similar and there are many new houses coming up every month, so in this case, a bathroom reno would not make such a difference or stand out. 

Similarly, if the renovation style doesn’t appeal to the majority of buyers in your area, you may struggle to recoup your investment.

Should You Renovate or Sell As-Is?

Ultimately, whether a bathroom renovation is worth it depends on your individual circumstances. If your bathroom is outdated and in need of repair, a simple renovation may be a worthwhile investment.

However, if your bathroom is already in good condition, a more cosmetic update may be sufficient. Try adding some nice towel rail, a bathroom heater, and invest in good bathroom lights

If you're unsure whether to renovate or sell as-is, consider consulting a real estate agent for their advice on the local market. An agent can help you determine whether a bathroom renovation will provide a positive return on investment or if you’d be better off selling your home as-is.

While a well-executed renovation can add significant value and appeal to your property, it’s important to avoid over-investing in the process.

By focusing on practical and affordable upgrades, you can make a big difference to the look and feel of your bathroom without breaking the bank. With the right approach, a bathroom renovation could help you secure a higher sale price and attract more potential buyers to your home.

Decided to do small improvements? Check out our special discounts at Zure.com.au

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