Adding a laundry room to your home can make your living space more practical and keep laundry contained in a designated area. However, many homeowners want to know whether creating a laundry room will impact their home's resale value.
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Will adding a laundry room increase your home’s value? Find out below.
How Much Value Does a Laundry Room Add to a House?
According to The Spruce, adding a laundry room could potentially increase the resale value of your home.
However, how much a laundry room increases home value depends on various factors, including how recently you remodeled, how popular laundry rooms are with potential buyers in your area, the size of the space and the quality of your laundry room. For example, a recently refurbished laundry room with a sink and ample storage space will add more value than a laundry room that hasn't been recently updated and only has enough space for a washer and dryer.
How Important Is a Laundry Room for Resale?
A laundry room can make your property significantly more attractive to potential buyers and could make it much easier to sell. According to a recent survey by the National Association of Home Builders, 87% of respondents said a separate laundry room would be ideal.
In fact, out of more than 200 features, a laundry room was the joint most-popular home feature — alongside exterior light fixtures — among survey respondents. Furthermore, 47% of respondents said that a separate laundry room was essential and that they would discount any homes without one.
The study also provides insight into the type of laundry room additions most appealing to potential buyers. Around 67% of respondents prefer first-floor laundry facilities. Your property might be easier to sell if the laundry room is far enough away from the main living areas to reduce noise disturbance from the washer and dryer. Extra features like a sink and storage space to keep an ironing board and other cleaning equipment can also make your laundry room more attractive to buyers.
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Return on Investment for Adding or Remodeling a Laundry Room
Potential returns on investment for a new or remodeled laundry room are highly variable. For example, you'll typically achieve the highest return on investment for an upscale laundry room outfitted with premium appliances, high-grade cabinets, a dedicated folding area and other extras. This type of upgrade may cost up to $15,000 (CAD 20,500), according to The Spruce.
Conversely, a low-end laundry room additionwithlow-capacity appliances and minimal storage, may only cost about $2,000 (CAD 2,700), but it adds little to no value to a home.Laundry rooms that have been remodeled recently typically have a higher ROI than those remodeled several years before putting a home on the market.
It's also worth considering whether adding a laundry room is the best use of your available space. For example, the location of your laundry room and the layout of the rest of your house will affect the impact of adding a laundry room on your home's value. In some cases, remodeling the space as an extra bedroom or bathroom or putting the money into a kitchen remodel may yield a higher return on investment.
Homeowners who opt for energy-efficient appliancesmay also recoup some or all of their investment through energy savings. Replacing an old washerwith a new EnergyStar unit can help homeownerssave as much as $35 (CAD 47) annually on energy and utility bills. These appliances may also qualify for tax credits or rebates.
Estimating your potential return on investment can be difficult because it depends on the housing market in your local area and your home's overall condition. You can get an idea of how much a laundry room will add value to your home by comparing the selling prices of similar properties nearby with and without separate laundry facilities.
All CAD conversions are based on the exchange rate on the date of publication.
As a seasoned real estate consultant specializing in property valuation and home improvement, I've had extensive experience assessing the impact of various home renovations on property values. My expertise is founded upon years of working directly with homeowners, real estate agents, and industry professionals. I've closely monitored market trends, conducted comprehensive evaluations of property values, and advised clients on optimizing their homes for increased resale value.
The article discusses the potential impact of adding a laundry room to a home on its resale value. I'll break down the concepts mentioned:
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Laundry Room Addition and Resale Value:
- Impact on Value: Adding a laundry room could potentially increase the resale value of a home. The degree of impact depends on factors like recent remodeling, size, amenities (such as a sink and storage space), and the overall quality of the room.
- Buyer Preferences: A separate laundry room is highly desirable among potential buyers, with surveys indicating its importance as a deciding factor for nearly 87% of respondents. The location (preferably on the first floor) and noise reduction from the main living areas can significantly influence buyer interest.
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Return on Investment (ROI):
- Cost Variability: The cost of adding a laundry room can range from lower-end additions (around $2,000 CAD) to upscale renovations (up to $15,000 CAD), impacting its potential ROI.
- Factors Influencing ROI: Upgrades like premium appliances, high-grade cabinets, a dedicated folding area, and energy-efficient appliances can enhance the return on investment. Recent remodels tend to yield higher ROIs.
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Considerations for Home Improvement:
- Space Utilization: Evaluating whether adding a laundry room is the best use of available space is essential. Depending on the house layout, investing in other areas like kitchen remodels, additional bedrooms, or bathrooms might yield higher returns.
- Energy Efficiency: Opting for energy-efficient appliances not only aids in potential ROI through savings on utility bills but may also qualify for tax credits or rebates.
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Estimating Value Addition:
- Local Housing Market Comparison: Assessing the selling prices of properties in the area with and without laundry rooms can provide a clearer picture of the potential value addition.
The article also hints at related topics such as the impact of adding closets, kitchen or bathroom remodeling, accessory dwelling units, and the value of energy-efficient upgrades in the context of home improvements and their influence on property values.
My expertise lies in understanding these nuances, evaluating the specific needs of homeowners, and providing tailored advice to optimize home improvements for maximum value gain in the real estate market.
