Rare Homes in Real Estate Buffalo NY

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Real estate investors should know exactly how common their type of home is in their market area. To answer this question, investors have to start by identifying and understanding the differentiating characteristics of the total inventory of existing area homes. Then they should pick a characteristic to study. For example, how many homes are 10 years old versus 50 years old? What percentage are colonials versus ranches? How many are at least 2,500 square feet or 5,000 square feet or more? What percentage of condos in the market area are apartment style or townhouse style? How many one bedroom condos exist versus those with two bedrooms?

Many buyers and sellers start their home search or home sale in a vacuum of information. They start looking at homes and marketing homes before they put their entire effort in context. The typical buyer and seller are focused on active and sold homes in a particular geographic area, style and price range. Yet, they often don’t know how their total inventory of homes breaks down by specific characteristics.

Each type of home in a given market area and price range can be more or less rare. Given that buyers and sellers are limited to a finite inventory, it makes sense to know what the total inventory and potential active inventory of homes is. For example, in an established older town that has been developed for some time, most homes will be older. Perform a simple exercise and determine what percentage of homes are old, somewhat old or new. In Stamford, Conn., based on five years of Consolidated Multiple Listing Service data, 54 percent of sold homes were more than 50 years old and 81 of sold homes were more than 30 years old.

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Author: Patricia Rattray
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JVL Management Company

(716) 884-3913
3 Linwood Ave., Ste. 1
Buffalo, NY