$3.5 million for a small house in Western New York?

A modest-sized home is on the market for $3.5 million in suburban Buffalo, New York. For what? Location, location, location.

Housing prices have been on the rise across the United States for some time now. In Upstate, Central, West, Capital Region, North Country, and Southern New York, prices followed this trend. These areas have historically been considered among the most affordable places in the United States to purchase a beautiful home. While this remains true, there is no doubt that prices have increased significantly. A house that cost, say, $150,000 in a good neighborhood 5 years ago will sell for double or more that price today. Several factors have contributed to rising prices, making it a seller’s market.

That being said, a 1,300 square foot home that is well maintained and located in a good neighborhood can cost between $175,000 and $350,000 in the areas of New York State we are discussing. Sometimes more, but it’s a pretty reasonable range to expect right now, based on my experiences.

That’s why when I came across a beautiful house in a good city that was 1,344 square feet with 3 beds and 1 bath being sold for $3.5 MILLION, I was surprised.

What the house offers

Now it’s a beautiful house, depending on your aesthetic. There is a beautiful, new driveway. From the exterior photos below, it appears well maintained. He owns land: 5.63 acres. That’s a good thing, but it’s not like this land is on an oil well. So why does it cost $3.5 million? This seems absurd.

But the devil is in the details. Although the house and land are not located on an oil well, they are on a potential, metaphorical gold mine.

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This property is located at 5265 Big Tree Rd in Orchard Park, New York. A very beautiful city with superb schools. It’s also the home of the Buffalo Bills, and that’s why the property is so expensive.

Why this tiny house is on the market for $3.5 million

The house and land being sold are within walking distance of Highmark Stadium, home of the Buffalo Bills. This includes the brand new stadium built right across the street from the original. The lots sold with this house are used as parking and can (should) generate A LOT of income. They could also be repurposed commercially to open hotels, restaurants and other attractions during game day festivities and beyond.

That’s why a 1,344 square foot home with 5.63 acres sells for $3.5 million. Selling homes and land in this area for millions of dollars has become a very common trend since the new stadium was announced.

The location has tons of income potential. Check out the home and property, listed on Zillow by Verax Real Estate LLC and real estate agent Alina Pierowicz, reachable at 716-908-0057.

Would you pay that much for this property?

Personally, I think this is a huge, and perhaps foolish, risk. At least I think it’s for a small business owner. Even though a new stadium will open in 2026 and promises of major economic development have been made, I think they will be difficult to keep. When the original stadium was built, the same promises were made. In my opinion, these promises never really came to fruition as they were sold to everyone. It could happen, but other than game days and concerts (which have been sporadic, historically), how do you make money on this investment the rest of the year?

There are of course ways. How would a corporation and/or development company have purchased this land versus an individual, or group of individuals, in the case of a small business.

I could be wrong, of course. I’m not an expert. Just talking. What do you think?

Pat McMahon hosts afternoons on Buffalo’s Real Rock, 92.9 WBUF every weekday from 3 p.m. to 7 p.m. [email protected]. @PMBuffalo

This isn’t the only house near the stadium that brings in A LOT of money. Check out this recent announcement.