What It Really Takes to Buy or Sell a Home-Based Business Property on Long Island
I was recently quoted in a Newsday feature on Long Islanders who run businesses out of their homes — and it got me thinking about a topic I see come up a lot in my work as a real estate agent: what actually happens when a home and a business share the same roof, and what buyers and sellers need to know.
Long Island has a thriving community of home-based business owners — from embroiderers and daycare operators to wedding planners and promotional goods companies. These entrepreneurs have transformed bedrooms, basements and living rooms into client-facing workspaces. And as a real estate agent, I get a front-row seat to what that means when it comes time to buy or sell.
The Newsday article — written by Rachel Weiss and published March 12, 2026 — does a wonderful job telling the stories of these business owners. Below, I’m sharing the section of the piece most relevant to real estate buyers and sellers, followed by my own perspective on navigating this niche.
The following is excerpted from “Home businesses: How these Long Islanders maintain work-life balance, boundaries,” by Rachel Weiss, Newsday, March 12, 2026. Reproduced here for editorial commentary purposes.
Making it work
Ree Wackett is an advanced certified senior business adviser at Stony Brook University’s Small Business Development Center. There is an SBDC at Farmingdale State College, as well.
For Long Islanders hoping to start businesses from their homes, Wackett has some advice.
“The No. 1 thing I would let them know is to make sure that they can legally operate from home,” she said. “Some businesses you cannot run out of your house, like a restaurant or bar. You’ll want to make sure you’re in compliance with any state or local ordinances and licensures.” New York State and county websites are good places for budding entrepreneurs to start.
Next: Future home business owners must ensure they have the proper licenses for their industry. At her SBDC, “we walk them through that.”
“Then we’d want to make sure they choose the proper legal business distinction, whether it’s a corporation or an LLC, or if they’re just going to operate in sole proprietorship. These sort of tenets apply to any sort of business,” Wackett added.
Those who plan to work from home are advised to create some separation, physically and financially, from their personal lives.
“We want to make sure the business owner has a dedicated workspace, so their literal home life doesn’t sort of creep into their business life,” Wackett said. “Even if it’s just a corner of a room.”
Additionally, “we encourage them to make sure their finances are completely separate, so dedicate a bank account to the business even though it’s based from home, so there is no co-mingling of personal finance and business finance,” she said.
Finding the right place
Nick Orlando is a real estate agent with Compass, based in Huntington. He has worked with a client who was hoping to find a home that would accommodate her business as a hairstylist.
“We were looking in the Town of Huntington,” Orlando said. “So any township of course has their restrictions and protocols that you have to go through, and for her and her business, it would have involved going through variances and getting zoning approval. So it was going to be lengthy, but she was OK with that.”
His client was searching for a high ranch, with her business occupying the main level while she would live upstairs, Orlando said. She also wanted space for ample parking and enough room inside to fit multiple customers. In the end, they didn’t find the right home.
For Long Islanders on similar home searches, the market’s low supply and high competition means that buyers should be flexible about location, and get creative with the floor plan, Orlando said.
Sellers listing homes with businesses attached will still find success in this market, even if the buyer doesn’t have a need for it, Orlando said.
“A lot of times when you see a property that has a business out of it, I see the property to be a little underpriced, because it might not be as valuable to the market at large,” he said. “Most buyers are not really going to need that use, and might have to put some money into it to make their own.”
But Orlando recently saw two homes on the market in Suffolk County that contained a hair salon and a dance studio inside, respectively. They both went into contract within weeks, slightly over the asking price, he said.
“Buyers are now not really as sensitive and take these types of properties with these characteristics into consideration, because there’s such limited inventory,” he said.
Read the full Newsday article: Home businesses: How these Long Islanders maintain work-life balance, boundaries
My take: What this means for buyers and sellers
If you’re a buyer searching for a property that can double as a business, the most important first step isn’t finding the right floor plan — it’s understanding what your municipality will actually allow. Zoning restrictions, variance requirements, and licensing obligations vary significantly from one Long Island township to the next. Going in with realistic expectations about timeline and process will save you a lot of frustration.
For sellers with a home-based business already in place, don’t assume the business use will scare buyers away. In today’s low-inventory market, the right buyer will see it as a feature — and the recent examples I’ve seen in Suffolk County back that up. Price it right, and it will move.
Whether you’re buying or selling, navigating these kinds of unique properties is exactly what I do. If you’d like to talk through your situation, I’m always happy to connect.
