According to the Buffalo, New York Government site, vacant properties within the prescribed locations in the Homestead Map, part of the Buffalo Homestead program, could be bought for only $1 provided that such homes will be intended for private use only.
Yes, you read it correctly, $1 for a home! This is the current value of the popular Buffalo homes that are now abandoned by owners. However, these Buffalo homes may actually be more expensive than $1 to own as the costs expected to fix them up and make them adhere to correct building codes means thousands of dollars.
Here's what $1 Buffalo home buyers should expect to spend on.
Closing Costs
There are still closing costs that come with the purchase of the house. Like most real estate transactions involving purchases of houses or real properties, buying a Buffalo home also requires paying the closing cost upfront as mandated by the Buffalo Government. Do not forget to include the property taxes to be settled to the city, yearly.
Initial Renovation Costs
One may have seen the actual damages on their visit before purchase, yet there may be some overlooked damages that only experts could see. The repairs extend from fixing of furnace, building new compartments and fixing the roof. Other major repais include plumbing, electricity wiring and installation, aside from fixing rotting walls.
It is then advised that before purchasing a Buffalo home, one must thoroughly inspect the units, or better yet, bring along an expert who will guide them on repair estimates. More importantly, an advisor who will frankly guide buyers in their decision to whether or not buy the property will save them from getting their foot in the door.
As reported by CNN, some owners have spent more than they expected on these $1 homes. Mike Puma who bought a house for $1, has now spent $40,000 on plumbing, roofing and electricity costs alone.
Maintenance Costs
Because these homes are actually old properties that have been abandoned, the costs to maintain them are very far from maintaining newly-built homes offered in the market. Even after renovation, the challenges of renovating again may present if the property is left vacant again for some time.
This is the same scenario that happened to buyer and Buffalo local, Deyron Tabb. As Tabb related to CNN, he already finished roof repairs and made himself a wonderful home, until five years later when the walls, floors and wooden furnishings must be repaired again, almost like a restart!
Price of Security
All homebuyers must make sure that the community they will be living in is safe. So this question, may still a bit hazy and doubt could be a reason for some to hesitate buying these Buffalo properties. It is reported by CNN that only less than 10 families actually bought properties in Buffalo last year. Since the original owners left these properties, incidents of breaking in were reported, according to CNN.
So if you are not sure that you can fully recover your initial investment, aside from other factors like safety and sustainability, you should think twice before giving in to the "$1 only" tag.
