Musings: Listed low to lure buyers to bid far above

The high prices in Long Island’s housing market have reached levels that are increasingly disconnected from the financial realities of working families, making homeownership seem unattainable for many.

The widespread practice of intentionally underpricing properties to spark bidding wars has created a systemic bait-and-switch dynamic. Homes are listed at one price — often appearing within reach — only to have buyers learn that offers must exceed the asking price by $50,000, $100,000 or more. Buyers invest significant time, money and emotional energy into properties they never had a realistic opportunity to purchase.

My family has been searching for over a year. Recently, we found a Suffolk County home listed at $669,000. After expressing strong interest, we were advised we would need to exceed $700,000 just to be considered. In good faith, we offered $720,000 — a substantial stretch, particularly given that many homes built in the 1950s through 1970s require at least $100,000 in renovations. Even after going well beyond the asking price, we were asked to submit our “highest and best” offer.

The only clear beneficiaries appear to be sellers and agents earning a percentage of escalating prices. Traditionally, homebuying involved negotiation toward a mutually acceptable agreement. Today, buyers are expected to bid far above list price from the outset, often without transparency.

Friends have experienced the same pattern and ultimately chose to leave New York State altogether, purchasing larger homes with more property and lower taxes. It increasingly feels as if residents are being forced out rather than freely choosing to leave, separating them from parents and grandparents.

I am a dentist carrying substantial student loan debt, yet we are still struggling to purchase a home for our family. Increasingly, multigenerational pooling of funds appears to be one of the few viable paths to ownership — undermining the traditional expectation that working professionals can independently establish a home.

Long Island has long been a place where middle class families could establish roots. Today, qualified buyers are priced out by opaque practices. Industry professionals, regulators and local leaders should examine these practices and consider reforms promoting transparency, fairness and realistic pricing. Without meaningful change, homeownership here will continue to slip out of reach for many hardworking residents.

— Michael Maiorino, Plainview