Foreclosures in Town?
Posted by CityBlogNY on May 28th, 2007
Can anyone speak to the issue of foreclosures in Buffalo, New York? Foreclosures are up around the country due to the sub-prime lending practices. Is there any foreclosure impact on real estate in Buffalo?
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Yes. Buffalo is in a region known as Western New York to locals. This area encompasses a large area including Niagara & Erie counties. I work mainly in Northern Erie and Niagara Counties There is a definite increase in foreclosures. This area has not seen the huge increase in prices of real estate that many areas of the country have so you do not see the steep discounts. Because many of the REO sellers rely on Agents to set values, ie, BPO’s. Most of the foreclosures are priced at slightly above market for a retail purchase. This is done so the agent can secure a listing. Actual sales are closing at 80-85% of market value after the seasoning on the market. Many times it does not sell until the second or third agent lists it at a reasonable price. One of the biggest challenges we have is agents who refuse to present offers they deem to low or unreasonable. I know this is illegal and unethical but believe me it happens. I help people by pre-foreclosures and REO properties. It takes some extra work both in creating a short sale package and dealing with agents that think they have earned their commission by putting a sign in the ground. Retail buyers are always going to be happy with a 5-10% below market purchase. If you are a wholesale buyer looking for 15-30% discounts and have cash or hard money to work with I would be glad to help.
Wayne,
Wow, you make Realtors sound unethical! Sorry if you have had a bad day!
Actually home values in Western New York haven’t changed much in 2 years. The problem with the housing market nationally is due to houses that sold at inflated prices during the boom market and mortgages that were questionable, (based in hope? I hope we can afford this? I hope prices keep going on like they are so we can sell later and make big $$$). We didn’t have many bad mortgages or a price boom in this area.
We do have foreclosures, and they can be a good buy for someone who understands what they are getting into. For one thing you need cash, or a conventional or rehab mortgage. You also need patience. And you need a Realtor who works well with others, and can help you.