Bathroom Renovation

Bathroom renovation involves giving your bathroom a fresh look to improve its functionality. A complete makeover usually involves gutting the entire bathroom to address underlying issues. This process allows you to add modern features, such as top-notch plumbing and electrical systems.

Why a Bathroom Renovation Is Worth It

If your bathroom is stuck in the past, a renovation is a smart investment in your home’s value and your family’s comfort. Here are some reasons why the project is worth it:

Boosts Home Value

Bathrooms are a big deal for potential buyers. Homes with fresh, updated baths tend to sell faster and at higher prices. When done correctly, a bathroom renovation can recoup up to 64% of its cost when you sell. Learn more about the value of a bathroom remodel.

Upgrades Your Space and Functionality

An outdated bathroom can be a real eyesore. When you update the fixtures, tiles, and lighting, it can completely change the vibe and turn it into a modern, stylish space.

But that’s not all.

Renovating your bathroom also boosts its functionality. For example, adding water-saving toilets or showers makes everyday life a little easier. Check out bathroom renovation trends.

Uncovers Hidden Issues

When the walls and floors come down, contractors will spot any underlying problems, such as leaky pipes, mold, rotting wood, and more. Fixing these issues can prevent bigger headaches in the future.

Saves Money Long-Term

Modern fixtures are designed to be water and energy-efficient. When you swap out old toilets and showers, it can cut down your utility bills, while enjoying a bathroom that looks and works great for years to come. Explore our resources to learn more about bathroom renovation benefits, costs, and more.

How Much Does a Bathroom Renovation Cost?

The average cost for a bathroom renovation is around $10,000, according to Forbes. For more extensive or luxury projects, costs can easily go over $30,000, depending on how extensive the work is and the quality of materials you choose.

That said, the actual cost will vary based on several factors, such as:

Materials

The quality and type of materials you pick for your bathroom renovation can make a big difference in the total cost. Naturally, you’ll spend more if you choose high-end materials, such as natural stone tiles, custom vanities, and luxury fixtures. On the other hand, you can keep costs down if you go for more budget-friendly options like porcelain tiles and standard fixtures.

Labor

Labor costs make up a big chunk of any bathroom renovation project. Hiring experienced professionals, such as plumbers, electricians, and tile experts, ensures the work is done right, but you’ll pay a premium for their skills.

Design Choices

The complexity of your bathroom design also affects the price tag. Simple layouts with standard fixtures will cost less than intricate designs with custom elements.

Room Size

The size of your bathroom has a big impact on the cost. A larger space usually means more materials, fixtures, and labor, which translates to higher expenses. Smaller bathrooms are generally more budget-friendly since there’s less area to cover. Keep in mind that even small changes can affect the price, so make sure to plan accordingly.

Structural Changes

Expect to pay more if you want to change the floor plan or make structural alterations. Extensive changes to your existing plumbing, electrical, or walls can make the renovation project complex and add to the cost of labor and materials. 

These changes often need permits and inspections, too, which can extend the project’s timeline and increase overall expenses. 

Learn more about bathroom remodel costs.

Money-Saving Tips for Bathroom Renovations

Here are some strategies for reducing costs without compromising on quality:

• Prioritize Your Needs: Start by identifying what’s essential for your renovation versus what would be nice to have. Focus on the must-haves to keep costs down while still achieving a fresh look.
• Keep the Layout: If possible, stick to your bathroom’s existing layout. Moving plumbing and electrical fixtures is usually expensive, so try to keep things in place as much as possible to save money.
• Shop Around for Materials and Fixtures: Shopping around for materials and fixtures can save you money. Take the time to compare costs for tiles, faucets, and cabinetry, as prices can vary widely between retailers. Look for sales, discounts, or clearance items, and don’t hesitate to ask for quotes from multiple suppliers.

Discover more tips for saving money on home renovations.

Why Hiring Professionals and Using Financing Is a Smart Move

If you’re handy, a DIY bathroom remodel can be tempting. However, there are plenty of good reasons to hire a contractor and consider financing instead.

Opting to work with professionals for your bathroom remodel means hiring people with the know-how to tackle complex installations like shower stalls and bathtubs. Professionals also make sure everything meets local building codes. This can really pay off if you decide to sell your home later.

Besides, using financing to cover the costs makes it easier to get top-quality work. It saves you time and stress and ensures your renovation project gets done right and on schedule.

Once you’re ready to start, It’s usually a good idea to find a reliable contractor who can help you plan and execute your renovation. Read our guide for tips on how to choose the best bathroom remodeling contractors.

How to Finance Your Bathroom Renovation

A bathroom renovation can boost your home’s value and make daily life more enjoyable, but it usually requires financing. The costs of structural changes and new fixtures can add up quickly, so it’s important to find the right financing option.

Here are ways to finance your bathroom renovation, along with the pros and cons of each:

Home Equity Loans

This loan lets you borrow against the equity in your home. You receive a lump sum upfront and pay it back over a fixed term at a fixed interest rate.

Pros:

• Generally lower interest rates compared to personal loans
• Fixed payments make budgeting easier

Cons:

• You risk losing your home if you can’t repay
• Takes time to process

Learn more about home equity loans.

Home Equity Line of Credit (HELOC)

This loan option works like a credit card. It lets you borrow against your home’s equity as needed.

Pros:

• Flexible borrowing
• Only pay interest on what you use

Cons:

• Variable interest rates can lead to higher payments over time
• Potential for overspending

Explore our guides on HELOCs.

Cash-Out Refinancing

This option involves getting a new mortgage for more than you owe on your existing one and taking the difference in cash to fund your renovation.

Pros:

• Potentially lower interest rates than personal loans
• Can consolidate debt

Cons:

• Extends the term of your mortgage
• Closing costs can be high

Learn more about cash-out refinance.

Government-Backed Loans

Some government-backed loans, like the FHA 203(k) loan, are designed for home renovations. These loans allow you to finance both the purchase of a home and the costs of necessary repairs or improvements in a single mortgage.

Pros:

• Lower down payment requirements
• Can finance both the purchase and renovation

Cons:

• Extensive paperwork and inspections
• Can take longer to process

Learn more about FHA loans.

Personal Loans

A personal loan is an unsecured loan that you can use for your renovation. You’ll receive a lump sum and repay it over time with interest.

Pros:

• Quick access to funds
• No collateral required

Cons:

• Higher interest rates compared to secured loans
• Repayment terms can vary widely

Check out our loan education guides to understand different loan types, terminologies, and topics.

RenoFi Loans

When it comes to financing your bathroom renovation, the options we’ve covered each have their perks, but they can’t match the borrowing power of a RenoFi loan.

For instance, a traditional 90% LTV HELOC that lets you borrow up to 90% of your home’s value might seem like a good choice. However, it often falls short because the equity you have isn’t enough to cover your entire renovation wish list. That’s where RenoFi loans come in — these loans use your home’s value after the renovations to boost your available equity.

Here’s an example. Say your home is currently worth $500,000, and you owe $400,000 on your mortgage. You plan to renovate and expect that once the work is done, your home will be worth about $640,000. Right now, your loan-to-value ratio (LTV) is 80%, which means you can’t borrow anything to fund your renovation.

But with a RenoFi loan, you can borrow based on that future value. It allows you to go as high as 150% LTV or 90% LTV using the after-renovation value. So, in this case, while a standard home equity loan would leave you with $0 borrowing power, a RenoFi loan could let you borrow up to $176,000, thanks to the increased value of your home after your renovations.

If you are considering a home renovation, RenoFi is by far the smartest way to finance your project. Learn more and explore your borrowing options here.

Get started with your RenoFi loan here.

Maximizing Return on Investment

Getting a RenoFi loan to fund your bathroom renovation is a great first step. But to really make the most of your investment, you need to know how these renovations can boost your home’s value and which upgrades offer the best return.

How Bathroom Renovations Can Increase Home Value

A bathroom renovation is one of the best ways to up your home’s value. The key is to pick upgrades that attract buyers and improve both function and style.

Here are some tips for renovations that yield the highest ROI:

• Focus on Key Upgrades: Start with important changes such as old fixture replacement, energy-efficiency additions, and storage upgrades.
• Choose Quality Materials: Go for durable, high-quality materials that last and look good to potential buyers.
• Keep It Neutral: Stick with neutral colors and designs to appeal to more buyers and make the space feel bigger and more inviting.
• Boost Functionality and Style: If possible, tweak your bathroom to work better and look great by adding features like double vanities or better lighting. These changes can really improve your space without needing to redo the whole layout.

See real-life before-and-after examples of RenoFi-sponsored renovations.

Choosing the Right Contractor

Picking the right contractor is crucial for the success of your bathroom renovation. A good contractor brings your vision to life, while a bad one can cause problems like delays and extra costs. Learn how to deal with a bad contractor.

Here’s how to find and choose the right renovation contractor:

Getting Started With Contractors

Start by asking friends, family, or neighbors for recommendations. Check online reviews to see what others are saying about their work. Make sure they’re licensed, insured, and experienced with bathroom projects. Ask for references and check their license status to ensure they’re reliable.

Questions to Ask During Hiring

When talking to contractors, ask about their experience with similar projects and who will be working on-site. Find out their typical timeline and how they handle delays. Discuss their project management style, communication, and warranty policies. Discover important questions to ask a contractor for a smooth renovation project.

Contracts and Warranties

A solid contract helps keep both you and the contractor covered. It should clearly outline the work scope, the timeline, payment details, and warranties. Also, make sure it covers the materials and who’s handling permits and codes. Learn more about RenoFi’s contractor due diligence.

Take the Next Step Toward Your Dream Bathroom

A bathroom renovation can be a wise investment because it boosts your home’s value. Besides, it lets you enjoy daily living and makes your space look great.

We get it, though. Renovation can be expensive and requires the right financing solution. That’s where RenoFi comes in. We can help you access the funds you need through our lending partners at competitive rates.

Additionally, our RenoFi loans are the smartest way to finance a home renovation project. Unlike traditional loans, which are based on your current home value or require you to refinance your primary mortgage and give up your low rate, RenoFi loans are based on the after-renovation value of your home. This allows you to borrow, on average, 11x more, get a low monthly payment, and keep your low rate on your first mortgage.

Don’t let the cost hold you back. Contact us to find out how we can support your renovation journey today.