Articles

Since COVID, the residential real estate market in Rochester has trended in favor of sellers. It is not uncommon to have a house to sell for tens, even hundreds of thousands of dollars over the initial list price. In an effort to ‘win’ the battle to buy a home in this seller’s market, many buyers are doing things that most attorneys would advise against. This article will overview these related issues and recommend some things buyers can do to try to protect themselves in the current seller’s market.         

Low Inventory

The near record low inventory of homes for sale in Rochester is due to several factors. One major contributor is the interest rate. From 2015 through early 2020, mortgage interest rates hovered around 4-5%. When COVID hit, the Federal Reserve quickly lowered rates, and suddenly residential mortgages could be had in the 2-3% range. This sparked not only a frenzy of home buying but also refinances. Since 2022, mortgage interest rates have shot up to around 6-7%. Existing Rochester homeowners with favorable interest rates under 5% have little interest in moving unless it is necessary.

Another contributing factor has been the significant increase in home prices since COVID. The Home Price Index for Rochester in the first quarter of 1992 stood at 101.94, 114.83 in 2002, 138.79 in 2012, 171.89 in 2020 (the last quarter before COVID), 217.67 in 2022, and currently stands at 291.63 in 2025.[1] During the COVID work from home years, there were a significant number of new buyers that came into the Rochester market because they did not need to live in a specific locale, such as NYC or Boston for example. The prices in Rochester were (and still are) extremely cheap when compared to the metro areas of NYC, Boston and other large metro areas. Existing Rochester homeowners that bought at pre-COVID prices also have little interest in moving unless it is necessary.              

Delayed Negotiations

Prior to COVID, it was not uncommon to list your house, wait for an offer to come in and then weigh the offer. Many times, the first offer that came in was the offer accepted by the seller. Buyers commonly asked for and receive a home inspection as part of the process. A newer listing strategy known as delayed negotiation has become much more common in the Rochester market. Now, a house will typically be listed for sale on a Tuesday or Wednesday, with all offers due by Noon the following Monday. The seller and their agent will then review all the offers at once and select the best offer.

Strategies many buyers now employ to make their offer the best offer is to waive any inspection, offer a large (and sometimes non-refundable) down payment, waive any mortgage contingency, allow the seller rent-free post-closing possession, and to include a price escalation addendum. A typical price escalation addendum provides that if multiple purchase offers are received by the seller that are equal to or greater in price than that of their offer, then that offer is automatically increased in increments of usually 3 or 5 thousand dollars, up to a maximum dollar amount. Depending on the number of other offers that include an escalation addendum, the final sale price can quickly escalate well over the listing price.  

High Cost to Build

The cost of labor and materials necessary to build a single-family house have increased significantly since COVID. A January 2025 National Association of Home Builders (NAHB) report found that “[t]he average construction cost of a typical single-family home in the 2024 survey [was] $428,215 . . .or about $162 per square foot – the highest in the history of this series.”[2] Although this is a nationwide survey, the overall effect is that affordable new builds for first time homeowners are almost extinct. This further restricts the supply of housing stock for sale and increases the potential number of offers on existing homes listed for sale.

What Can Be Done?

The confluence of these and other market conditions do impact what you can do when looking to purchase a home. The starting point is typically to find a real estate agent that you are comfortable with. Purchasing a home is the largest investment you will typically make in your lifetime. It is important that you have a partner in that process, not just someone showing you listings. Most agents will spend the time to speak with you and give you an opportunity to gauge their fit with your search.

Before making an offer, a developing tactic for buyers is to bring your home inspector along with you for the walk through the property whether at a private showing or an open house. This will not substitute for a full inspection but will at least give you some confidence in visible items. This will allow you to either decide against making an offer in the first place or waive a formal inspection contingency when making your offer.  

Relatedly, the New York Property Condition Disclosure Statement (PCDS) form is required to be provided by sellers to potential buyers of residential properties. If a seller refuses to provide a PCDS, that is a major red flag unless the property is being sold by a decedent’s estate after someone has died. If the home has been owned for a very short time, that may indicate that the seller is ‘flipping’ the property, and the level and quality of workmanship may be at issue. If important questions are marked as “Unknown” or “N/A” instead of “Yes” or “No”, that is an indication that the seller may be trying to hide an issue.

Generally, New York law places the burden on the buyer to perform due diligence and thoroughly inspect a home when making an offer. Caveat emptor (let the buyer beware) does not, however, alleviate the seller from their obligation to not actively conceal defects or fraudulently fill out the PCDS. Selling a house “as-is” still requires that the information provided to a buyer in the PCDS is true and complete to the seller’s knowledge. One of the most litigated portions of the PCDS are the water related questions.

When making an offer, your attorney should be given a minimum of 3 business days to review the contract with you and then issue either written approval or disapproval. You should take time to make sure your attorney is the one for you. Many times, a real estate agent will have a recommendation as to which attorney to use, but as the buyer you have the absolute right to decide which attorney will represent you in the transaction. A home purchase is probably the biggest investment you will ever make, and you should have legal guidance from an attorney you are comfortable with.  

At McConville Considine Cooman & Morin, our Rochester real estate attorneys have represented buyers in all phases of real estate transactions for over 40 years. Not all real estate transactions are straight forward in today’s fast paced market; our real estate attorneys possess the experience and knowledge in real estate law to give you practical advice and to help you navigate any legal issue that may arise in the course of buying a house. We focus on making your real estate transaction as easy and hassle-free as possible. We welcome the opportunity to work with first-time homebuyers and veteran homeowners alike, and strive to ensure that you understand the process, one step at a time.

If you have questions regarding buying or selling a home contact our real estate attorneys  , Mikal J. Krueger at mkruger@mccmlaw.com, 585-512-3546 or Lucien A. Morin, II at lmorin@mccmlaw.com, 585-512- 3534.

[1] https://fred.stlouisfed.org/series/ATNHPIUS40380Q

[2] https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2025/special-study-cost-of-constructing-a-home-2024-january-2025.pdf?rev=00a42a1ce63b4a22a4dba9bda8af954b

This publication is intended as an information source for clients, prospective clients, and colleagues and constitutes attorney advertising. The content should not be considered legal advice and readers should not act upon information in this publication without individualized professional counsel.

About MCCM

McConville Considine Cooman & Morin, P.C. is a full-service law firm based in Rochester, New York, providing high-quality legal services to businesses and individuals since 1979.  With over a dozen attorneys and a full paralegal support staff, the firm is well-positioned to right-size services tailored to each client. We are large enough to provide expertise in a broad range of practice areas, yet small enough to devote prompt, personal attention to our clients.

We represent a diverse range of clients located throughout New York State and New England.  They include individuals, numerous manufacturing and service industry businesses, local governments, and health care professionals, provider groups, facilities and associations. We also serve as local counsel to out-of-state clients and their attorneys who have litigation pending in Western New York courts.  For more information, please contact us at 585.546.2500.