What is that extra bathroom worth?

The scenario is all too familiar- searching the web listings you come across the seemingly perfect 2- bedroom row house –it’s in the right location, close to public transit and good schools, not next to the fire station, it’s more than 12 feet wide so the stairs don’t eat up all the space, it has a decent size garden and a finished basement, it’s under $1 million.  Then it all comes crashing down -it only has one bathroom!

Even the prospective single buyer knows that while one bathroom might be perfectly suitable for her/his living arrangements, on resale this is likely to affect value and narrow the field of prospective buyers.

In this post we crunched the numbers to see how much an extra bathroom is worth and the difference with respect to a half-bathroom.

Here’s what we found based on an analysis of market values for over 15,000 2-bedroom single family homes.

Average value of a an additional full and a half bathroom in a 2 bedroom home in DC  

1

Difference in value compared to a 2 bedroom- 2 bath

2 Highlights:

On average, the extra full bathroom results in a difference in value of about 15 percent, or almost $60,000.

The average figure masks significant differences among neighborhoods.  In Georgetown, the differential between a one bathroom and 2 bathroom property was almost 25 percent.  Some of the differential is due to the fact that a 2 bedroom 2 bath house is simply larger- larger bedrooms, a larger living room- so that not all of the incremental value is due to the extra bathroom. We estimate that about 1/3 of the additional value or about $75,000 is due to the extra bathroom. (See graph below for a comparison of select neighborhoods)

In less expensive neighborhoods, like Trinidad and Brookland, the difference was less pronounced, only about 15 and 11 percent respectively.

Having 1.5 baths narrows the differential in value with respect to a full 2 bathroom considerably. The average difference in value compared to a full 2 bathroom is $23,000, or about 6 percent.

Comparison of values of 2 bedroom homes by number of bathrooms and neighborhood 

3

The upshot

The large premium that a 2 bedroom 2 bath row house commands over a house with only a single bathroom  makes it worthwhile to ask an architect friend if she/he can squeeze in at least a half bath. Perhaps they can combine the hallway closet with the kitchen pantry. This is certainly the case in neighborhoods like Georgetown where the increase in value from having the extra full or half bathroom would compensate for the cost.

What exactly is the data?

Data on property values were obtained from the Office of Tax and Revenue and refer to values in 2015. As noted above these are average differences.  Values will vary considerably based on others factors such as the condition of the home, square footage, the presence of other amenities like fireplaces, garages, etc.

Bob Zuraski contributed to this post

 

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