Is adding a 1/2 or full Bathroom worth it?

Question

I am struggling to sell my newly renovated 3/1 ranch here in Marietta GA. The feedback we are getting is that it needs an extra bathroom. I would need a permit and have room in the carport to add the bathroom. I have already reduced from $300k to $290k break even is at $275k Which I really just need to get it off my books. Estimating the cost of the bathroom is $25k I would do a shower-only bathroom.

Nathan Grabau · Answer

Offer closing cost credits instead of another price drop. A 9k buy down is very appealing to people. The holding costs will kill you if you add another bathroom.

Jonathan R McLaughlin · Answer

@Nicole Harrington even a mini closet type bath would help and is likely to be cheaper and quicker. Lists as 1.5 baths and allows buyers to be comfortable with the idea they won’t have to wait to pee :)

Steven Goldman · Answer

@Nicole Harrington

If the feedback you are receiving is that you need a second bathroom so be it. Anytime we rehab. a house with a single bathroom we add a  bath with shower enclosure to the project. It may not  increase the purchase price in a falling market. It always reduces the selling time. Most people do not want visitors using their main bathroom. Good luck.

Eliott Elias · Answer

Depends market to market. But adding a bath to a one bath usually adds great value. Families don’t want to share 1 bath

Nicole Harrington · Answer

Lesson learned,  that's for sure. And stick to my gutts. Bc I was saying all along to do it. Thanks 3veryone

Michael Dumler · Answer

@Nicole Harrington, it definitely appears that the market is starting to take a turn and is favoring buyers more so. If this had been listed 4-5 months ago it would have been under contract within a week if priced appropriately. Rates are absolutely scaring first-time home-buyers. Unfortunately, both of your options are a bit of a gamble in my opinion. While adding a bathroom certainly enhances value, it still might not even be enough to push buyers. What are your holding costs? I would first advise another price reduction, or offer seller concessions as noted by Nathan before going through the headache of adding a bathroom.

Barry Westover · Answer

I was thinking same thing, powder room for guests

Nathan Grabau · Answer

A rate buydown often results in a lower monthly mortgage payment than a price reduction. Closing costs include items like appraisal fees, transfer taxes, lender fees, prepaid taxes and insurance, etc; if you get the seller to pay some or all of these it saves you money up front vs saving you money over the term of your loan.

Eliott Elias · Answer

If it's what's gonna get it sold then yes i'd do it. Maybe offer a bathroom addition quote upon closing and take it off the sales pricce

Khari F. · Answer

@Nathan Grabau Hi what are some common closing credits? why is that more beneficial to buyer than price drop?

Is adding a 1/2 or full Bathroom worth it?

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