Home Buying in 14222>Question Details

Stury24, Home Buyer in Buffalo, NY

Is 20% to low in this market?

Asked by Stury24, Buffalo, NY Fri Aug 21, 2009

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Answers

3
Hey there Stury.....

Alex Trebek would probably accept your question on Jeopardy! because it technically IS in the form of a question, but we need you to give us a little more information as to what you are referring to.

Are you asking if 20% below the listing price is a good offer?
Are you asking if 20% is too low of a downpayment?
or...Are you asking if 20% Return on your Investment is too low for this market?

If you can provide us with some more details, we'd be happy to offer you our opinions, knowledge, and direction.

Darin
Web Reference: http://www.hhiinvesting.com
1 vote Thank Flag Link Fri Aug 21, 2009
The average list price to sale price ratio in Western New York has been about 96% which means 3-4% lower. However, if the owner owes a certain amount of money, they must be able to clear enough to close. Too many homeowners went and refinanced or took home equity loans a few years ago and now owe more that the property is worth. Now, they may need to sell and can't. That is where the Short Sale is becoming more prevalent; selling the property short of what is owed. The lender has to approve and many times puts the seller on a payment plan to repay a portion of the difference over several years. It also depends on the price range of the property. The higher end properties are taking a bigger beating. Those sellers may owe much less because they came in with a lot more down from a previous home. It those cases, they may sell for less than they paid but still more or just close to what they owe.
It's not as bad as other parts of the country in Western New York. In other areas, there are bidding wars going on and in some cases, houses are selling over asking price.
Get the advice of a good real estate professional that specializes in the area that you are look to buy.
Joe Sorrentino
Associate Broker - MJ Peterson Real Estate
joe@joesorrentino.com
0 votes Thank Flag Link Fri Aug 21, 2009
Sorry I meant 20% below asking price. The home has been on the market for 5 months
0 votes Thank Flag Link Fri Aug 21, 2009
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