One of the best and easiest ways to increase the value of your home is to add a bathroom.
"A lot of older homes were built with only one bathroom despite having two floors and at least three bedrooms," says Kavanagh. "Newly constructed homes typically have at least two full baths upstairs and a powder room below, so having only one bathroom can limit the resale value of a home."
One important consideration when constructing a new bath or powder room is whether you can afford to give up the square footage. For many older homes, particularly in urban areas, you may need to sacrifice closet space or a small bedroom for an additional bathroom or powder room. These can be tough choices, but ones that are important from a resale perspective since buyers have come to expect multiple bathrooms, particularly those who are making the switch from a newer home to an older one.
Additional considerations for adding a bathroom include where to put it –- you'll save time and energy by choosing a location near existing plumbing lines. If you need to tear down walls in order to bring plumbing from another side of the house, the cost of the job goes up substantially [source: Garcia]. You should also find out if a building permit is required. Homeowners who bypass this requirement may face fines or risk having a job that's not up to local building codes, which can be a problem for resale purposes.