In 1992, real estate mogul and investor Barbara Corcoran worked part-time as a package delivery person to supplement her income. She had founded her real estate firm, the Corcoran Group, but it hadn’t yet taken off.
One day, Corcoran delivered an envelope to a 4,600-square-foot penthouse apartment on New York City’s famous Fifth Avenue. From there, she decided she wanted to own it one day.
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“It was a bad time in real estate," Corcoran told the New York Times. "I walked in and saw this green, lush terrace through the French doors, and said to the lady who let me in, ‘If you’re ever going to sell this, would you sell it to me?’”
The woman didn’t take Corcoran seriously at the time. But once she decided she was ready to sell more than 20 years later, she called Corcoran, who, together with her husband, bought the 11-room duplex for $10 million in 2015. They then sunk $3 million into renovations.
Now, Corcoran is gearing up to sell her beloved home — and she’s poised to get a price she’s happy with.
A strategic approach to renovating
When Corcoran bought her penthouse, she had a vision for it. To that end, she was willing to spend $3 million to create a truly unique living space.
However, the home also had some features that attracted Corcoran, like a curved staircase and a balcony with city views. In the end, though, Corcoran bought the townhouse based on a gut feeling.
"That’s how I buy all of my homes. I have an emotional love affair with them," she told CNBC. I walk in and I go, ‘I belong here.’"
In 2020, Corcoran explained to CNBC that when she walked into that penthouse, she could see herself living there. At the same time, she said she was probably looking at $12 million for the apartment if she were to sell it.
“New York is a crazy market,” she said at the time. “But one thing I know for sure is I will make a lot of money.”
Fast-forward to 2025, and Corcoran is putting her penthouse on the market — not because she no longer loves it, but because the curved staircase she once fell in love with is getting harder for her and her husband to use.
Corcoran is confident she’ll get $12 million for the penthouse, which has five bedrooms, five full bathrooms, two half bathrooms, a butler’s pantry and a library featuring a wood-burning fireplace. But it was Corcoran’s renovations that changed the layout and feel of the apartment.
For example, she loved the greenhouse that came with it, but she transformed that part of the penthouse into a more usable dining space.
Now, Corcoran plans to move from her current home to a one-story penthouse instead. But she doesn’t regret sinking all of that money into renovations, even though she’s technically looking at less money than the $13 million she put into the home.
Corcoran overimproved her penthouse upon purchase, knowing she’d live there for 10 years. She figured she would enjoy her renovations and still command a reasonable price for the home once she was ready to move on.
Incidentally, now could be a good time to sell a home because housing inventory is still pretty low. The National Association of Realtors put housing inventory at a four-month supply in March, which is on the low end of what’s needed to even out the housing market.
Of course, high-end real estate like what Corcoran is selling doesn’t always conform to national trends. But in New York City, where there will always be a buyer with deep pockets, it makes sense to renovate strategically to create a one-of-a-kind home that can attract offers even in a down market.
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How to renovate your home strategically
If you own a home, you may want to change aspects of it, either for your enjoyment or to increase its resale value. But when taking on a home improvement project, it’s important to know which goal you’re targeting.
If you want to boost your home’s resale value, research your renovations to see if they’ll raise the price. You should also talk to local real estate agents, who can tell you which improvements are more likely to appeal to buyers than others.
That said, you should know that most of the time, renovations won’t add to your home’s resale value on a dollar-for-dollar basis. That’s something Corcoran was no doubt aware of when she put $3 million into her penthouse.
The Journal of Light Construction (JLC) releases an annual Cost vs. Value Report that shows how much value different projects can add to a home. In its most recent version, which came out in 2024, it identified only three renovations — garage door replacement, entry door replacement, and manufactured stone veneer — that added more resale value than the cost of the work.
The remaining reviewed projects had a cost recovery rate of 23.9% to 97.4%. So, it’s important to understand the potential value of every improvement you’re considering.
That said, it’s also okay to do what Corcoran did and renovate a home for your own enjoyment, even if you don’t recoup your entire outlay.
A $50,000 renovation may only yield you $30,000 at resale, but when you think about it, you’re not "losing" $20,000 in that scenario so much as spending $20,000 for a better quality of life in the context of living in your home.
If you stay in your home for 10 years like Corcoran did, a more comfortable space will cost you just $2,000 a year.
Of course, once you decide you’re ready to sell your home, it’s important to get your timing right. A hot market isn’t necessarily the best time to sell if you’re upsizing, because what you gain by selling your home, you might overpay for your next one. If you’re downsizing, that changes the equation. In that case, it could be an optimal time to sell.
A down market, meanwhile, may not be ideal for selling because you might get an even smaller percentage of your renovation dollars back. But if you’re buying simultaneously, you’ll pay less for your next home, so things could even out nicely.
Of course, it’s possible for the broad real estate market to be booming but for sales to be sluggish in your area, or vice versa.
That’s why it’s important to work with an agent who knows the local market. They can help you not only make smart renovation choices but also sell your home at the right time to come away a winner financially.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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