The Wall Street Journal ran a story recently describing a trend gaining in popularity among elite real estate buyers: buying up apartment buildings to transform them into single-family mansions.
The practice of converting multifamily buildings into pricier single-family homes is nothing new, but these types of projects come with challenges unique to their locality. For example, the Wall Street Journal‘s Candace Jackson points out that many buildings in New York City are rent-regulated, “so buyers often focus on already vacant buildings, while others buy out tenants or wait for them to either die or move out on their own.”
Luxury buyers in markets where inventory is tight may decide to take these kinds of creative approaches in their quest for the perfect home. According to realtor.com’s Chief Economist Jonathan Smoke, properties listed on realtor.com in March 2016 spent 75 days on the market, which is 19 days faster than in February and 14 days faster than the previous year.
If you’re operating in an area currently experiencing low inventory, how have you helped your buyer clients succeed in finding their dream home?