The typical goal when listing luxury homes is to realize maximum profit with a quick sale. In Calgary, the luxury market is defined by homes that are valued at $1 million dollars or more. Although Calgary is currently experiencing a seller’s market (meaning there are more buyers than there are homes to buy) the impact of this market trend can be different in the luxury homes sector. This sector is often driven by factors different than the typical home sales market and specific strategies are often required to achieve top dollar and fast sales. Sellers of luxury homes may wonder if a home renovation is a smart strategy to achieve their goals in selling.
Does Renovating Luxury Homes Make Sense?
Home renovations can pay off when it comes time to sell. It is important to make sure the renovations you are considering will have a great return on investment (ROI). Here are some of the renovations with the highest ROIs:
- Kitchens: Smart kitchen renovations often have a great return on investment. RE/MAX Canada values this return at an average of 93.5%. Presenting your home for sale with a high-end, updated kitchen can result in a quicker sale for top dollar. When a buyer can envision cooking and entertaining in a beautiful move-in-ready kitchen, you have just nailed the sale.
- Bathrooms: Bathroom renovations can be a lot to take on: time consuming and inconvenient. When a buyer sees a luxuriously-appointed bathroom, with up-to-date conveniences and finishes, without the burden of having to update the room themselves, it can be a great selling feature. RE/MAX Canada values this renovation as a high-return effort at 61.3%.
- Paint And Flooring: These are often simple and affordable upgrades that can pack a big punch. Fresh, neutral paint colours can totally transform a space and replacing worn and stained carpeting with hardwood or luxury vinyl plank flooring will elevate the home. These easy renovations can yield a return of up to 58%.
Do These Luxury Home Renos Pay Off When You Sell?
As you can see, investing in renovating luxury homes to sell can result in a great ROI, but dollar for dollar, the math might not make sense. Here are some additional considerations before you take on a luxury home renovation.
- Market Conditions: In a seller’s market, homes will move quickly. Depending on comparable homes for sale in your neighbourhood, your home might sell quickly even without a renovation. And taking on a lengthy reno project could delay your selling timeline and you may lose the momentum of the market by the time your renos are completed. Sometimes simply staging your luxury home can help buyers recognize the value of your home.
- Buyer Profiles: Buyers of luxury homes will often seek a unique and specific real estate product. Tastes are personal and generic finishes that appeal to a mass audience don’t always cut it for this discerning buyer. Investing your money in renovations to satisfy a typical buyer, or completely personalizing a design aesthetic may eliminate the very buyer you want to attract. On the other hand, many luxury homebuyers are seeking a completely move-in-ready product and do not want the hassle and inconvenience of taking on a major renovation after purchase. A skilled and experienced Realtor® will be able to provide insight into your target buyer and help you determine if a renovation will position you favourably.
- Pricing Insight: Real estate, particularly the luxury homes market, is really a numbers game. It may make sense to upgrade your home to realize a high sale price. But it may make more sense to make accommodations for renovations that a buyer is likely to want and price your home accordingly for a fast sale. A Realtor® with in-depth knowledge of the luxury homes market will be able to help you determine the best strategy to sell your home.
- Your Personal Goals For Selling: The reason you are selling your luxury home, your next move in the real estate market, and your timelines to achieve your goals are all important factors when deciding if a renovation is the right strategy for you. If you need to accomplish a quick sale to move on to your next purchase you might choose to forgo a renovation and sell your luxury home as-is. If your ultimate goal is to achieve top dollar and you have time to wait for the right buyer, a beautiful renovation could help you break price records for sales in your neighbourhood. Make sure you let your Realtor® know your goals for selling and they will work with you to develop the smartest strategy for listing your luxury home.
Selling Insight From Calgary’s Luxury Home Experts
Renovating your luxury home could help you achieve maximum profit in resale. But major renovations take time and investment and depending on your personal goals for selling, this strategy might not make sense. The smartest strategy for optimizing profit, while selling as quickly as you need to, is to partner with a team who understands the complexities of selling in Calgary’s luxury homes sector. The right Realtor® will have the skill and experience to protect your financial investment while helping you achieve your goals for selling. The expert team of Realtors® and real estate specialists at The Tanya Eklund Group have the insight and experience to position your luxury home for the next sale in your neighbourhood. Leverage our network and in-depth knowledge of the Calgary luxury homes market to ensure that you are able to sell your home quickly for the best possible price.
If you are seeking a unique luxury property for your next home or if you are interested in listing your luxury home for sale, The Tanya Eklund Group team has the resources you need. Reach out to us at 403-863-7434 or contact us online and let’s talk about your home.