Cheapest Homes in New York

Buyers looking for the cheapest homes in New York will find that home prices in New York are on average are down from where they were just five or six years ago. The decline in prices is directly related to the collapse of the real estate market, which has been felt around the country. One thing that buyers should keep in mind when looking for affordable homes in New York State is that the prices of homes can vary widely throughout the state. For example, the median price of a home in Long Island, New York tends to far exceed the median home price of a home in Buffalo. The price for a home in Yorktown Heights might fall somewhere in between the two areas.

Look Outside the City for the Cheapest Homes in New York

Buyers who are looking to purchase a family home would do well to look outside New York City. Overall, the prices for homes in NYC have been impacted just as they have elsewhere. That said; home prices have still remained strong in the city. Consumers with good credit as well as a steady income at a job they have held for awhile will find good deals in many locales outside the city. Westchester County is one such example. In Westchester County, it would seem that homes for sale are flooding the market.

This is good news for individuals with children as Westchester County has historically been popular with families. Westchester County is considered to have one of the best public school districts in not only the state but the country. The real estate market in Westchester County makes now an excellent time to consider purchasing a home in an area that is just slightly north of NYC.

Westchester County did manage to avoid the overall collapse of the real estate market for awhile, but eventually succumbed as well. The prices of homes in Westchester, particularly in the pricier areas of the county, are now lower than the state average. These areas include Scarsdale, Rye and Chappaqua.

Where to Find the Cheapest Homes in New YorkAlthough the average home prices in these areas can sometimes top $1 million if buyers are looking for a good deal in upper class neighborhoods, they are plentiful. Sellers appear to be more than willing to negotiate. The sheer number of homes on the market has led many sellers to the bargaining table. Many sellers in the areas are attempting to move into homes with less expensive homes in an effort to downsize. Experts have predicted that the glut of homes for sale in this area will not quickly decrease, which is good news for buyers.

Cheapest Homes in New York City

New York managed to avoid the real estate difficulties of the rest of the country for awhile, but eventually the Big Apple was affected as well. In Manhattan, apartment sales began to tumble while housing prices quickly followed. The average price for an apartment in Manhattan dropped approximately 25%. The demand for homes combined with the availability of low interest rates has induced many buyers to consider Brooklyn, Staten Island and Queens in light of declining home prices.

In Manhattan, apartment prices remained above $1,000 per square foot; however, eventually those prices deflated to around $700 per square foot. Initially, many sellers refused to back off their listed asking prices. An increasing number of lay-offs changed that picture.

Homes Value Around the State

Around the state, real estate markets have tumbled. Below is a glance at local markets in New York and how they have compared:

Deals have been running rampant in Buffalo, in particular. Real estate professionals have reported that homes sales in Buffalo have fallen, with nearly half of those sales resulting from foreclosures.

Buying Foreclosures in New York

Throughout the state, buyers who are looking for good deal on home purchases will find that foreclosures may offer the best option. Like many other states in the country, the real estate market in New York is rife with foreclosure listings. Foreclosures typically occur when a homeowner simply is no longer able to afford their mortgage payments. The sour state of the economy combined with increasing layoffs and uncertainty about the future has escalated the number of foreclosures.

The main advantage of buying a foreclosure is that the buyer is often able to purchase the home at below market value. The exact percentage below market value can vary from one area to another. It is not unusual to be able to save tens of thousands of dollars on the purchase of a foreclosed home.

Buyers should keep in mind that in some instances a foreclosed home may need more repairs than would be the case with a regular listing. This is often because homeowners who find themselves in arrears on their mortgage and headed towards foreclosure cannot afford to make repairs. Banks that list foreclosures often sell them as is. Even so, a foreclosure can offer an excellent opportunity for a buyer that is looking to save money. Registering with a service that will alert you about new foreclosure listings is a good way to stay on top of this niche market.

Buyers on the lookout for savings might also wish to consider pre-foreclosures. A pre-foreclosure occurs when a homeowner realizes they are in financial trouble. With foreclosure looming, the homeowner may be willing to sell their home at a rock bottom price to avoid a negative mark on their credit. Scouring the for sale by owner listings can sometimes be a good way to locate cheap homes for sale throughout the state of New York.

Short Sales Equal Savings in New York

Another option to consider is a short sale. While short sales were at one time relatively rare they are increasing in frequency in New York as well as the rest of the country. A short sale occurs when a homeowner needs to sell a home quickly and sells it for less than what is actually owed on it. For example, a homeowner might have a $250,000 balance remaining on their mortgage loan but offer the home for sale for $200,000. A short sale usually stems from a homeowner trying to avoid foreclosure.

In the case of a short sale, the bank that holds the mortgage must agree to sell the home for less than what is owed on it. While not all banks are willing to agree to this type of sale, there is an increase in the number that will consider it. As banks become flooded with more and more foreclosures, they are trying to lower the number of foreclosures on their books. Buyers who consider a short sale should keep in mind that the process can be more time consuming than a traditional sale. Many buyers have found that the ability to save so much money can be worth the extra time.

Buyers who are looking for short sales should consider retaining the services of a real estate agent who specializes in these types of sales. He or she may be able to alert you about short sale listings as soon as they are posted. Their experience can also help to guide you through the process of making an offer to the bank that holds the mortgage on the home.

Other Tactics for Finding Cheap Homes

Overall, the cheapest homes in New York are primarily going to be situated in the areas that have been hit the hardest by the economic downturn. This includes areas where there have been massive layoffs and the unemployment rate remains high. In these areas, homeowners are often willing to significantly reduce the price of their homes for numerous reasons. One of the most common reasons is because there are simply so many homes for sale. Anytime the real estate market is flooded with a large number of homes for sale, that market becomes a buyer’s market. In a buyer’s market, prices tend to be lower and terms are often more negotiable.

Terms are another area that buyers who are looking for a good deal should be certain to take into consideration. The terms of a real estate transaction can include closing costs, possible repairs, home warranties and more. Negotiating the terms of the transaction can reduce the overall price of the property as well as the buyer’s out-of-pocket expenses. This can be particularly important for first-time homebuyers who may have the credit to purchase a home, but not a lot of cash on-hand.

In a buyer’s market, prospective buyers should never be afraid to negotiate. Most sellers are well aware of the need to negotiate in today’s real estate market. This is especially true in markets where homes routinely sit on the market for months at a time if not a year or longer.

Regardless of the area where you are looking for cheap homes in New York, it is important to make sure you utilize the power of the Internet. The key to keep in mind is that while you are looking for affordable homes, so are other buyers. The hunt for the cheapest homes can be competitive. Staying on top of new listings as they come in can help you to take advantage of a good deal before it is gone. Many real estate websites today allow users to sign up to be alerted as new listings come in. This can be an excellent tool to take advantage of when looking for a good deal on a house.

Searching for the cheapest homes in New York is much easier today than it was five years ago because of the glut in the housing market. Exploring the following tactics can help you to find a cheap home that meets your needs:

Following these tactics can help you to save more money than you might have imagined on the purchase of your next home in New York.