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| This handsome double is located in Hamlin Park and city-owned. A separate post will follow for it shortly |
Traditionally, the process
for buying a city owned home includes demonstrating the buyer has a minimum of
$5000 for purchase and rehab, a review of the property, and an appraisal paid
for by the purchaser. If the home is only worth a few thousand dollars, the
cost of the appraisal (~ $300 to $500) becomes a large percentage of buyer’s
investment in the house purchase and often deters people from entering into the
program.
After that initial process
the application goes through the land use planning committee for review. The
committee meets the first and third Wednesday of every month so if the
application is not received in time it could mean an additional two-week delay.
They evaluate all aspects of the application including a check that the buyer
is clear of all code violations, up to date on their taxes, and not a home
flipper. This whole process from the initial interest in the home to the land
use approval typically takes two months.
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| The Lyth Cottage was purchased from the city in 2011 and is nearing the end of its rehabilitation |
In order to cut down on time
and costs for a potential buyer, the Department of Real Estate has recently
introduced a new system for marketing a city owned property. The Multiple Listing
System (MLS) reduces the time of the purchase review by about two months. Additionally,
it establishes the fair market value for each property rather than having an
interested buyer pay for an appraisal.
The MLS is operated by the
WNY Real Estate Information Service, which is associated with the Buffalo
Niagara Association of Realtors. The City of Buffalo had to become a broker
with approval from the Department of State in order to enter into the
Association and have the ability to join the Real Estate Information Service. The
homes on the MLS site can be purchased by using any licensed realtor rather
than going through the city process.
“I believe the quality of
life in the City of Buffalo can be impacted through real estate,” said Christie
Nelson, the Director of Real Estate, “Home ownership creates a sense of pride
that can lift up a community.” Christie was nice enough to spend about an hour
with me explaining this whole process and how the new system can make it easier
for buyers to reinvest in the city.
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| This house on East Utica was unfortunately lost recently after a buyer could not be found |
A question that has often
gone unanswered is why the city cannot just sell a property to a qualified
buyer for $1 and avoid this whole process. People often mistakenly point the
finger at city hall and claim it is just government stonewalling the little guy.
The real reason lies within in the city charter and NYS municipal law which
forbids “gifting” real property to an individual, i.e. not paying fair market
value. This presents a limitation for the real estate department since there
are many capable buyers out there, but most are unwilling to deal with traditional
lengthy purchase process.
“Mayor Byron Brown's appointment of
Christie Nelson as the new Director of Real Estate is the sort of appointment
that both grass roots community activists and private investors are supporting.”
said David Torke of fixBuffalo, “This
is an important step forward for the City and for people who want to invest
responsibly in the City's growing inventory of distressed property.” Torke has
helped facilitate the sale of several city-owned properties to new owners, many
moving from the suburbs into the city.
Although the city currently
has a handful of properties listed in the MLS more will likely be added and
expanded in the near future. Getting as many city owned properties on this list
will allow for an expedited purchase process and get these neglected homes into
the right hands for rehabilitation. The introduction of the MLS is certainly
keeping with the department’s goal of “making Buffalo’s neighborhoods better
for the next generation” and “creating economic, housing, and quality of life
opportunities in Buffalo’s neighborhoods.”
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