Clarification - Condo Resale Value

I want to address the assertion that:

"... the extreme non-traditional layout of the proposed renovation would limit our selling audience, which in turn would lower the final sale price."

It is 'extreme' and 'non-traditional', yes, compared with homes of the past. But today, open floor plans are the most popular choice among homebuyers.

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From the National Association of Home Builders (view):

• 75% of builders provide the completely or partially open design
• 86% of buyers want either a completely or partially open design
• NAHB/Wells Fargo -- Housing Market Index

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Gleanne was spot on when she wrote:

• "I know most of the Millennials... want big, expansive open areas. One look at HGTV confirms that, for better or worse.
• I just do not think you are doing yourself any favors regarding resale if you keep things compartmentalized."

Tom wrote, "... you will get the best bang for your buck in increased value of a remodeled condo." And my brother, real estate wizard of the century, concurs. They all have first-hand experience and our best interests in mind. I.e., they wouldn't encourage us to do it if they didn't think we should.

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From Chris Eckert, a leading realtor in our area:

• "The changes you proposed will make a difference of $200,000 to the sales price." (read more)
• "I would say that you should do the renovation."

Chris has been selling homes and condos since 2004, clearly understands how renovations impact resale value in our area, and has his own interior designer and contractor team to help him achieve maximum results. If he thought my renovation proposal was a bad idea, he would say so.

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My own thoughts re: resale value

What hasn't been discussed in detail is the impact my proposed third bedroom will have on resale value + walk-in closet renovation.

(1) Demand for Flex Rooms - Article 1 and Article 2

Per the National Association of Builders, homebuyers increasingly want what's called "flex rooms" - flexible, multiple-purpose rooms. That is essentially what we would have if we leave the two pocket doors "as is".

(2) Demand for Home Offices - MarketWatch Article

(3) Demand for Pocket Offices - Elyson Article

Intuitively, I know #1-3 from my own experience helping clients organize their homes. Their kitchen counters are perpetually cluttered with bills and mail. They need a play area because their kids' toys are taking over their xyz room. They need a place to sit down and work, etc. But because they are restricted to the existing layouts of their homes, I am constantly creating work-around solutions to help them overcome these issues.

So whether it lists as a 3-BR condo or a 2-BR with a flex room, that third room will add even more value -- on top of my kitchen renovation proposal.

(4) Demand for Walk-In Closets - This is a major selling point according to Chris Eckert. Condos with walk-ins are hard to find in our area.

Resale Value:

With all of the above + top floor + corner unit + high ceilings + great location, etc., I wouldn't be surprised if it sells for even more than +$200,000.

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The Key Takeaway

The only reasons we would not get a solid ROI is if we:

1. Have a runaway renovation budget
2. Design something that is truly butt ugly
3. Suffer total destruction via earthquake, etc.
4. Never sell the condo in our lifetime

We have full control over #1 and #2, and no control over #3.

But if #4 plays out -- and we can pass down +/- $200,000 more in property value to our little one while being able to live in a much more comfortable space, and that better serves our needs on many, many levels -- isn't that something worth considering... ?