Selling Contiguous Apartments

A mystifying equation:  1 + 1 equals 2.5 on real estate

It's a new way to make better profit according the New York Times. "It applies to breakthrough combinations", says the paper, "in which someone buys two adjoining apartments and breaks through the connecting wall, or in some cases the floor or ceiling, to create a bigger place. The equation makes no sense mathematically, but because larger spaces in the city are worth more per square foot than smaller ones, selling two smaller apartments as a potential combination can result in a higher sale price for each unit".

It's a profitable idea for neighbors to join forces in selling contiguous apartments.

Sellers are driven by two things. First, marketing a one-bedroom as both a one-bedroom and part of a potential three-bedroom significantly increases the buyer pool. Second, the market for larger apartments has been strong in recent years, as more New Yorkers have chosen to raise their families in the city rather than head to the suburbs.

nytimes

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