BROWNSTONE & TOWNHOME OWNERS
I own a brownstone or townhome that needs work.
Before you spend money fixing the property or accept the first as-is number that sounds reasonable, understand what buyers may actually be paying for.
A property that needs work may still have significant value in its current condition. The right buyer may be looking beyond the existing layout or finishes and underwriting the full market value, unused air rights, additional floors, conversion potential, or a larger redevelopment opportunity.
And while renovating may increase the eventual sale price, once construction costs, carrying costs, time, and execution risk are considered, selling as-is can sometimes produce the stronger outcome.
Understand what you’re really selling.
Know the as-is market. Understand what experienced all-cash buyers may pay for the property in its current condition.
Understand the renovated value. Know what the property could be worth fully renovated so you can see the spread a buyer is underwriting—and whether the discount being offered makes sense.
Look beyond the existing building. Evaluate unused air rights, additional floor area, possible vertical additions, conversions, and other development potential that could increase what certain buyers are willing to pay.
Identify the right buyer. A homeowner, renovator, investor, and developer may each value the same property differently. The strongest offer may come from the buyer who sees the most opportunity in what you already own.
ERNEST HILL IS REAL ESTATE
15+ Years in NYC Real Estate · Licensed R.E. Associate Broker · Powered by Development Site Advisors