Another recent instance of a fully renovated and improved older bungalow sell for zero premium over a condemned teardown was observed today. the lesson, should a person choose to learn it, is that certain parts of inner city calgary are dominated by a type of investment formula that shouldn’t be deviated from. There is no point to renovate an older bungalow unless the owner actually intends to live in the house permanently (thus the resale question is then moot). These properties transact based on land value, not house value. House value does not really enter into the equation, such that quality renovations are not demonstrably accretive to the property value. Sure livability goes way up, but that does not help when it comes time to sell and the renovated house ends up in the bin.

Do realtors know this and advise their clients accordingly? I hope so, but I suspect differently.