![]() They’re very well off, Bizzarro said, and already have a place in the city they’re selling. So his client is considering buying a home to knock it down and build new. Sellers know that, and it gives them leverage.īizzarro is working with a client now that’s looking for a home in Westchester, but everything on the market is too small for their family, in their view. There’s a general consensus that more often than not, buyers will have to purchase a subpar home to get the land. Either way, buyers are “paying a premium to buy a house and to knock it down and build,” Bizzarro said. “Clearly they have bank, so do they have bank because they earned it? Or do they have bank because it’s just family money,” he said. And because this process isn’t cheap, it’s mostly Gen Xers and older millennials who’ve already bought their first homes that are doing this-or buyers with family money, Bizzarro said. And again because inventory is tight, buyers “have to get creative to get the space that they want, and if they’re motivated enough or have the funds to do it, sometimes that means buying a house you would never buy and…knocking it down and starting over,” Bizzarro said. Matthew Bizzarro, broker and owner of his own real estate agency that serves New York City and Westchester, told Fortune that teardown buyers are “willing to just purchase the house to obtain a lot and then just knock it down and build the house that they want.” This is particularly true among buyers that are affluent-and he’s seeing it quite a bit. ![]() Although in Counts’ cases, they weren’t multimillion-dollar, or even million-dollar, knockdowns. He shared examples of teardowns in Scotch Plains and Atlantic Highlands, and like Gibbons suggested, the trend is centered on location and preference, with the money to back it up. As Fortune’s previously reported, knockdowns are happening throughout New Jersey, as “desperation is becoming a bigger part of the marketplace,” Curtis Counts, a New Jersey-based real estate sales associate, said earlier. Although they’re likely to be more expensive and grander in areas like it. The couple just moved into their finished, very modern home last summer-in what Gibbons called “your very typical New York story.”īut teardowns go beyond Ridgewood. The couple even rented for a year in the same neighborhood while their home was being built, so their kids could attend school and they could oversee the project. They purchased a colonial-style home in Ridgewood, in the summer of 2020 for close to $1 million with “every intention of tearing it down,” Gibbons said. ![]() On another occasion, Gibbons worked with a couple in their early 30s with kids that moved from New York City. She added that once their home is done, it’ll likely be valued around $3 million. Gibbons represented a buyer that closed on a property on West Ridgewood Avenue around two months ago for $900,000, and after tearing it down they’re building a more than 4,000 square-foot home, which is twice the size of the original “very old victorian” property that sat on the lot, Gibbons said. Gibbons said a half acre of land on the west side of Ridgewood “is going to be close to a million dollars easily, no matter what’s on it, so people are having to spend more to tear them down.” Meanwhile, the average home value in Ridgewood is $888,191 per Zillow, and in Bergen County it’s $592,031. That’s because the value of property and land has gone up, largely because of how tight inventory is and the lack of vacant land in these markets. But it isn’t always going to cost $2 million for the original property purchase, instead it’s likely going to be close to a million dollars. Sometimes that means buying a home just to knock it down. ![]() Following the pandemic, she noticed that buyers coming from New York City had more to spend, and they wanted to live in these so-called desirable locations with easy commutes. They’ve even run into problems concerning lot coverage, likely because they wanted to build an enormous home in place of what was previously a property under 4,000 square feet, Reynolds told Fortune.Ĭhristina Gibbons, a real estate broker with a team that’s based in Ridgewood, typically serves Bergen County, which is just outside of New York City. The couple, both in their mid-30s, Reynolds said, have since knocked it down and are in the process of rebuilding. She listed the center hall colonial home in March of last year and wasn’t all that shocked when she found out the couple wanted to tear it down. Priscilla Reynolds, a New Jersey-based sales associate, represented a seller that sold their home in Ridgewood for $2 million to a millennial couple from New York City. ![]()
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