Remodel then Re-list in Luxury Real Estate: Yay or Nay?

Remodel then Re-list in Luxury Real Estate: Yay or Nay?

For luxury homebuyers, the desire to purchase a home requiring renovations is becoming a thing of the past. Today’s affluent real estate shoppers are looking for turnkey, move-in ready properties with all of the amenities and none of the extra work.

And it looks like that’s not changing any time soon. According to a forecast from Persistence Market Research, the move-in ready luxury home market is expected to hit $920 billion by the end of 2025. That’s up from $550 billion just two years ago.

As an agent serving these ever-evolving high-end clients, it begs the question: should your affluent sellers remodel before listing their properties? Would it make their homes more marketable? More valuable? More appealing?

Here are the pros and cons The Institute for Luxury Home Marketing recommends you consider before advising sellers to implement renovations.

Advantages of renovating before listing:

  •     It typically enables a faster sales time.
  •     It makes for better listing photos.
  •     It can improve the marketability of a property.
  •     It allows you to maximize your asking price — and justify it.
  •     It gives your sellers more leverage in negotiations.

If your clients are looking to move fast (particularly relocation clients who are on tight timelines), this can be a big deal, but generally, there are very few people who truly want to sit and wait for their home to sell!

On top of this, pre-listing renovations can also increase the value of the property and justify a higher asking price. Throw in that today’s buyers simply prefer more move-in ready homes, and now you’ve got a property that doesn’t just command higher offers, but more buyer interest, too. It also means faster profits and faster commissions, so it’s a win-win all around.

The Institute’s program is dedicated to providing strategies to its members on ways that are proven to effectively help market and sell a property faster. Learn some amazing tips and tricks during our online training courses.

Disadvantages of renovating before listing:

  •     It could delay the listing and marketing of the property.
  •     The renovations may be a nuisance to the homeowner.
  •     It might require significant up-front cash.
  •     The renovations might pose a safety hazard.
  •     It may be difficult to choose the right projects, contractors, and vendors.

On the downside, renovations can be time-consuming and tedious. Though renovations might speed up a sale once they’re complete, it takes time to get there. If there are several contractors to hire, endless materials needed and multiple projects on the agenda, the renovations could actually delay the marketing of the property and, eventually, its sale and transfer, too.

Finally, renovating can be a hassle. If the homeowner is still living on the property, they might tire of the noise, foot traffic, and other nuisances that come with a remodel. The renovations could disrupt sleep, interrupt work schedules, or even pose a safety hazard for those living in the home. For these reasons, many sellers may shy away from this added work.

To Remodel or Not to Remodel

Should your client remodel before listing their home? There’s no hard-and-fast answer, but it could make the property more marketable and the sale more lucrative (for both of you.) Still, renovations aren’t without their drawbacks. Make sure your client is well aware of the nuisances that come with home remodeling and prepare them for the time and expense it may take to complete the renovations properly.

You should also caution your sellers that not all remodeling projects are created equal. Help them choose their renovations wisely by using resources like Remodeling magazine’s Cost vs. Value Report and Zillow’s top home features, as well as your own knowledge of luxury real estate trends and best practices. Make sure they select projects that improve not only the aesthetics and marketability of the home but also the property’s value given the current market.

The most important tip we can offer is to help your sellers find the right vendors to handle their chosen renovations. Connect them with the contractors, architects, and designers who can execute their projects efficiently, successfully, and with the highest quality and attention to detail.  By taking this pressure off their shoulders and making the process simpler you will actually generate a long-lasting relationship that will be rewarded by long-term benefits such as referrals and additional business.

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Luxury Portfolio: Curated Furniture from Around the World

Luxury Portfolio: Curated Furniture from Around the World

The Global Nomad

As we all know, there is nothing quite like travel as a way to collect new experiences. Often, we seek to bring a bit of our adventures home, whether by learning to make new cuisine or decorating our homes with treasures from our travels. While some trinkets are small, increasingly some globetrotting voyagers are thinking bigger. So big in fact, it is no longer uncommon for the individual traveler to arrange to have furniture, decor and other found treasures, shipped home as design is a universal language, but one that is colored by heritage and place. Following are just a few select designers we’re currently loving and that are worthy of shipping home, wherever you live.

Roche Bobois

France
The famed French furniture brand, Roche Bobois, has multiple stores in major cities. Its glamorous cosmopolitan style is known throughout the world and collaborations with designers such as Marcel Wanders keep the brand on the cutting edge. roche-bobois.com


Oluce

Italy
Based in Milan, Italy, Oluce was founded in 1945 and was one of the leaders in the rise of modernism and its application to lighting. The minimal yet fluid styles work well with both classic and contemporary decor, evidenced by the fact that models created decades ago such as the Atollo Arte lamp are still relevant today. oluce.com


Pinda Furniture

South Africa
South African designer Siyanda Mbele’s creations are both utilitarian and distinctive, bringing together elements from Zulu symbolism, Ndebele patterns, and his years of training in interior design. His inspired tables and desks have earned a global following, especially in Europe.

ziora.co/vendor/pinda-furniture/


Differniture

India
Designer Aakriti Kumar brings together the sculptural integrity of an artistic tradition with a sensitive eye toward using reclaimed and salvaged materials and sustainable manufacturing principles in her designs. Wood pieces are finished using nontoxic oils and waxes and each piece exposes the natural story the wood has to tell. Her furnishings often have a playful note as well, such as the Dot pieces which use carved wood buttons to mimic the look of upholstery. differniture.com


Lanzavecchia + Wai

Italy & Singapore
Francesca Lanzavecchia and Hunn Wai are designers, researchers and craftspeople. Together they are a prolific design force, collaborating on pieces such as the pleasingly rounded Pebble desk/vanity for Living Divani and the intricately detailed Clockwork sideboard for Exto. Each project combines a sense of joyous playfulness with a strict attention to the smallest of details. The designs themselves become stories, each one evoking a particular mood and feeling. lanzavecchia-wai.com


To view the full article, take a look at the feature in Luxury Portfolio Magazine here.

 

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