ArcaMax

Dear Monty: We have a split-level, three-bedroom, two-bathroom house with one bathroom on the first floor and one in the basement. All the bedrooms are on the first floor. We are considering adding an additional bathroom, specifically as a master bathroom, on the first floor. What value would this bring to the house? We plan to live in it for another 4 years and then sell it. We will value your opinion.

Monty's Answer: The real question isn't whether a bathroom adds value; it's whether it adds enough value to justify your investment. Most homeowners overestimate bathroom renovation returns, and the answer depends heavily on your specific market and home configuration.

Understanding Bathroom Addition Returns

Recent research shows adding a new bathroom typically recoups about 63% of costs at resale (HomeLight), while renovating existing bathrooms delivers better returns at 70-74% (Moreno Bath), this means if you spend $30,000 on a new bathroom, you might see roughly $19,000 added to your sale price four years from now, leaving $11,000 on the table.

Your Strategic Options

Option 1: Add the Master Bathroom Now

Invest $25,000-$40,000 and enjoy it for four years. You'll recoup approximately 60-65% at sale. Best if bathroom access is genuinely problematic now, or if comparable homes in your neighborhood have master baths and yours doesn't.

Option 2: Make Targeted Improvements Instead

Upgrade your existing first-floor bathroom with modern fixtures, better lighting and improved finishes for $8,000-$15,000. Minor bathroom updates can recoup over 85% of costs (Northbuiltconstruction), making this a smarter financial play while improving daily living.

Option 3: Wait and Let Buyers Decide

Skip the renovation entirely. Price your home slightly below comparable properties with master baths (perhaps $15,000-$20,000 less). Buyers can then add their preferred bathroom configuration post-purchase, avoiding your $30,000+ bet on features they may not value equally.

Option 4: Evaluate Your Market Reality

Research whether split-levels in your area with master baths actually command premium prices. Pull comparable sales data for similar homes with and without master bathrooms. The "bathroom premium" varies dramatically by location.

Critical Factors to Consider

Recent data shows bathroom remodels can boost home value by 4-7% on average (Moreno Bath), but this assumes the renovation stays current-looking. In four years, today's choices may already appear dated, reducing your return further. Consider functionality versus marketability. If your layout creates daily hassles, three people competing for one first-floor bathroom during mornings, the quality-of-life improvement might justify the financial loss. But if this is primarily about perceived resale value, the math doesn't support it.

My Recommendation

Assuming your split-level is in a typical suburban market and the bathroom configuration, while not ideal, isn't severely problematic. Given these assumptions, Option 2 or 3 makes more financial sense than adding a bathroom you'll only use for four years.

If you pursue the addition anyway, keep costs ruthlessly controlled, avoid luxury finishes and stick with mid-range materials that won't look dated quickly. Honestly assess whether this solves a real daily problem or just checks a box you think buyers want. The best home improvements are the ones that genuinely enhance how you live, at a cost that makes sense for your timeline.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @montgomRM or DearMonty.com.

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