Buying a Home in Lancaster

Buying a Home in Lancaster

  • Christopher Welch
  • 07/18/23

Lancaster, New York, is a pleasant suburb located just east of Buffalo. It’s a friendly place where residents feel safe living in comfortable suburban homes surrounded by parks and other open spaces, including Cayuga Creek. It’s just a short drive into downtown Buffalo and all the wonderful natural attractions that Lake Erie and Lake Ontario have to offer.

Great reasons for buying a house in Lancaster


Lancaster has a population of just 10,000 residents, making it easy to get around. Many parts of the community are walkable. There’s a great suburban feel, with vast open spaces just east of the city limits.

Cost of living

According to Best Places, the cost of living in Lancaster is considered reasonable compared to other parts of the state. Its overall rating of 88.2 compares very favorably against New York state’s overall rating of 121.5. Driving the cost-of-living favorability factor is the affordable costs of buying a home in Lancaster, which ranks 67.2 compared to the state rating of 127.9. Food prices are generally lower as well, both in the grocery stores and when dining out. While some costs might be slightly higher than the national average, they are almost all lower than the state average.

Awesome activities

People living in Lancaster are often fans of the Buffalo Bills of the NFL and the Buffalo Sabres of the NHL. Outdoor sports enthusiasts love having two Great Lakes within easy driving distance for boating, swimming, camping, hiking and biking, and many other activities.

What kind of homes are available in Lancaster?

Property types in the area

There is a nice mix of new and older homes in Lancaster. Many nice brick homes harken back several decades, many single-story homes. There are also newer homes with modern designs that are both one- and two-story construction. Many homes are set on large lots with big lawns and shade trees.

Determining housing costs

Median house price

Lancaster is part of the Buffalo Niagara metro area, where the median price of houses sold in the first quarter of 2023 was $206,000, according to figures from the National Association of Realtors. Of course, luxury homes in the suburbs often cost more than the median.

Closing costs

Closing costs for a home purchase in Lancaster will vary depending on the final contract price. Buyers expect to pay 2% to 5% of the purchase price. Buyers will be responsible for title insurance, bank fees associated with taking out a mortgage, and the cost of an appraisal.

Property taxes

The effective property tax rate in Lancaster in Erie County is currently $4.28 per $1,000 of assessed value. That means a home estimated at $100,000 would pay $428 in county property taxes. There could be additional city and school district tax assessments.

Homeowner’s insurance

The average cost of a homeowners insurance policy in Lancaster is about $778 per year. However, it could be higher or lower depending on the valuation of the home and any special features and amenities, and what deductible you choose.

HOA fees

When buying a home in Lancaster, check to see if desired properties are part of a homeowners association and therefore come with a monthly fee that helps cover costs and services that come with maintaining a building or property. HOA fees usually apply to condos and gated communities with amenities like clubhouses and swimming pools.

Types of home loans for all home buyers

  • Conventional loans — A conventional loan is any mortgage not guaranteed or insured by the government, meaning the lender assumes the risks of issuing the loan.

  • FHA loans — Many buyers qualify for a mortgage insured by the U.S. Federal Housing Administration. These loans typically require a lower credit score and lower down payment than other mortgages.

  • VA loans — The U.S. Veterans Administration backs loans with favorable terms for active service personnel, veterans, and eligible surviving spouses.

Money-saving tips for buying a home

Find the best mortgage rate

It pays to shop around with several mortgage lenders for the best interest rates and terms. Taking the time to research the various programs available can save thousands of dollars over the life of a mortgage.

Get pre-qualified

Obtaining a  pre-qualification letter, also known as a pre-approval letter, from your lender shows that the bank is willing to write a mortgage up to a certain amount. It lets the seller know that you are serious about buying their home and that your financing is solid enough for them to accept your offer.

Consider a bigger down payment to keep monthly payments down

Making a bigger down payment will make your monthly mortgage payments more manageable and save you money over the life of the loan. Begin saving for your down payment well before purchasing a home, and consider borrowing money from family and friends that you can pay back later once you’ve established yourself in your new home.

Increase your credit score

Once you’ve set a goal of buying a home in Lancaster, you can improve your all-important credit score by paying all your bills on time, reducing the balances on your credit cards, and paying off any loans that you can, including car loans. A great credit score can go a long way toward securing a lower interest rate and favorable terms from a mortgage lender.

Work with a real estate agent

The best, smoothest path toward buying a home in Lancaster is to work with an experienced real estate agent with a proven track record of success.

Make the move now to Lancaster

Being well-informed going into a home purchase will help you make the right decisions and find the perfect luxury home. When you decide to buy a home in Lancaster, partner with award-winning agent Christopher Welch for a smooth, enjoyable transaction.

*Header photo courtesy of Shutterstock


Ready to find your dream home? Work with Chris, a top-rated real estate agent with years of experience helping clients just like you. Contact Chris today and let's start your home-buying journey together!

Follow Me on Instagram