Boston Luxury Home Improvements May Not Necessarily Increase PriceJune 13, 2015
In a strong Boston luxury real estate market, I am running into a good number of pricing issues with sellers. Some sellers with older units think that if they update appliances or redo their kitchen and baths, they can get the same price as properties that have been totally rehabbed and renovated or newly constructed.
Renovated kitchens and baths will undoubtedly help sell Boston luxury real estate units faster. Renovated units in older buildings will fetch a better price than un-renovated ones. However, there is a limit to how extensively you intend to renovate and the price that you are envisioning of getting for the unit if you were to sell without consulting with an experienced realtor.
If you are renovating your Boston luxury home for your own pleasure and to live there, that’s fine. But it’s unrealistic to expect to recuperate the expense of the renovation at resale. The unit in a building could be renovated to the nines or a house could be gorgeously renovated from top to bottom, but if that renovated unit is in a building that is not up to the same standard as the unit itself, it’s a much tougher sell. Or the gorgeously renovated house is in a not so great neighborhood, then you have over spent on the house.
It is important to conform to your real estate surroundings, regardless of how much money you have spent. Even in this strong Boston luxury real estate market, there are beautifully renovated units not selling because they are over priced. Don’t over spend on renovation. If you do, enjoy the outcome by living there for a while, but don’t expect buyers to pay for it if the building or the neighborhood can’t support it.