The Prewar Dream, Reimagined: A Smarter Way to Finance Fixer-Uppers

By Lisa K. Lippman, Licensed Associate Real Estate Broker, Brown Harris Stevens

There is something undeniably special about a prewar apartment. From the gracious proportions and high ceilings to the intricate architectural details, these homes have a soul that is often unmatched. For many buyers, prewar apartments offer a unique opportunity to combine historic charm with modern luxury to create a space that is entirely their own.

But that opportunity comes at a price.

Beyond the logistics, the upfront cash required can be staggering. Buyers who are capable of comfortably covering the total cost of the home are often forced to walk away—not because they can’t afford it long-term, but because they simply can’t float two homes and a full gut renovation paid entirely in cash. Watching a buyer fall in love with a property, only to realize the short-term math doesn’t work, is a heartbreaking aspect of my job.

That’s why I believe we need a new approach that reflects the way people buy homes today.

I am advocating for a financing shift that could be a game-changer by encouraging boards to consider allowing buyers to borrow based on a home’s future renovated value, not just its current purchase price.

Here’s how it would work. Let’s say a buyer purchases a classic seven for $3.5 million which is in need of a full gut renovation, and that same home, once renovated, would be worth $6 million. Traditionally, banks—and by extension, co-op boards—will finance a percentage of the $3.5 million purchase price. But under my proposed model, financing could be based on the $6 million future value.

The implications are enormous. I estimate that unrenovated co-ops priced between $2 million and $10 million could sell for 8% to 15% more under this model. That’s not just good news for buyers—it’s a win for sellers and shareholders, too, particularly in buildings where dated apartments often sit on the market at deep discounts.

This approach would also help co-ops remain competitive with new developments. Buyers comparing a brand-new condo—where the price includes the finished product—with a charming, but outdated, prewar co-op tend to default to the simpler option. But if we can ease the financing burden and bridge the cash gap, we make room for more people to say yes.

Prewar buildings offer some of the most beautiful and enduring real estate opportunities throughout the city. Now it’s time for our financing models to catch up. With just a bit of imagination—and a willingness to rethink the status quo—we can unlock the full potential of these iconic apartments for the buyers who dream of calling them home.

Lisa K. Lippman has been the #1 agent at Brown Harris Stevens for the past nine consecutive years and was recently named the #3 Top New York City Resale Broker by The Real Deal, a Golden I Club finalist, and is consistently honored among the Hollywood Reporter’s New York City Power List. With 28 years of leading industry experience, Lisa’s depth of expertise, marketing savvy, and personal attention to every detail is sought out by buyers and sellers of high-end cooperatives, condominiums, and townhomes throughout Manhattan.

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