Homes that sold for below $500,000 on Long Island

Start small, expand later.

That's the advice of real estate agent LynnAnne Daly for first-time homebuyers searching for that elusive $500,000 price point.

"It's going to be very hard for first-time homebuyers to buy a house on Long Island," said Daly, who works for Douglas Elliman Real Estate in East Setauket. "So if you buy something smaller, you could add to it eventually. … I feel that a lot of first-time homebuyers want everything done for them, because they're working."

Some homes around this price on Long Island need work, while others are move-in ready, but on the smaller side. Either way, they sell quickly, local agents say.

In September, the median sale price of single-family homes totaled $860,000 in Nassau County and $740,000 in Suffolk County, according to OneKey MLS data. And according to recent findings by Zillow, New York State contains the second-most cities in the country where a typical starter home is worth $1 million or more.

"I'm worried some of these sellers are trying to take advantage of this competitive market by putting their homes up for far too much money, because they assume buyers are willing to go that high," said Daniel Bourke, a real estate agent with Serhant in Port Jefferson. "But these buyers are smart; they're working with smart agents and they're not willing to greatly overpay."

If buyers take their time, expand their desired radius, assemble a knowledgeable team and keep an open mind about expansion and renovation, landing a home in this price range on Long Island can be achieved, real estate agents say. Here are seven homes that closed for under $500,000 this fall.

Three bedrooms under $500G

Community

Selden

Sale price

$485,000

In Selden, a three-bedroom, one-bathroom home closed for $485,000 in October. The house garnered seven offers and went into contract within two weeks, said listing agent Lina Lopes, of Douglas Elliman Real Estate. She believes the number of bedrooms had something to do with it.

"A lot of times under $500,000, you're looking at two bedrooms," Lopes said. "It was a very sought-after house."

Lopes held three open houses for the listing, all of which were busy: "We probably had ten to fifteen groups on each day," she said.

The house was listed for $479,990 in July, with taxes of $8,293 in the Middle Country Central School District. It was fully fenced with a circular driveway and backyard deck.

Lopes recommends that Long Islanders shopping in this market work with a real estate agent, because they "may be able to suggest other towns in that price range" if their ideal area is lacking the inventory.

Plus, "sometimes there are off market properties that the Realtor might know about, and be able to get you in, because not everybody wants to put their house on the market right away," Lopes said.

Although this listing was well-maintained, she advises prospective buyers against overlooking homes that might need some work, instead of only focusing on the flips.

"You can spend a little extra time renovating the bathroom, but that mortgage payment still stays for the next 30 years at a lower number," Lopes said. "Because you're willing to do the work yourself, instead of buying somebody else's upgrade at a premium."

A slower start

Community

Miller Place

Sale price

$430,000

Daly was expecting a different level of activity on her Miller Place listing, which hit the market in June for $449,000.

"I thought it would be more busy," she admitted. There was a great deal of interest, but at the time, "other homes started coming on the market in beach communities within the vicinity, but they might have been a little more updated," Daly said.

The two-bed, one-bath ranch closed for $430,000 in October. The property is in the Miller Place Union Free School District, with taxes of $9,742.

The house was sold as-is, but did include a roof from 2013 and a new washer and dryer, updated in 2022.

The property also features a heated, screened-in porch and backyard barn, measuring 16-by-22 feet. The barn has potential to be transformed into a workout studio or workshop, and has a certificate of occupancy, Daly said.

The listing drew interested buyers from Nassau County and Queens, and was ultimately sold to an engaged couple — and they didn't seem to mind the home's storied roots.

"I was shocked because they were young, and they absolutely loved how the house was old," Daly said.

Newly renovated

Community

Sound Beach

Sale price

$430,000

A month before this home was listed, the seller completed major renovations: He revamped the bathroom, refinished the floors and added fresh coats of paint inside the home, Bourke said.

"He wanted to put a good product out on the market," the listing agent said.

At the time, this house "was objectively the most affordable two-bedroom home for sale in all of Sound Beach," Bourke said. It contains one bathroom, and the taxes were listed as $4,260. The property is in the Rocky Point Union Free School District.

The home was move-in ready, which was a selling point: Bourke held two open houses with a "great turnout" for both, he said. It was listed in August for $399,000, and closed in October for $430,000, after earning three offers.

In Sound Beach, "this price point is certainly below the norm, which is heavily dependent upon the fact that this was only a 750-square-foot home," Bourke said.

But the hamlet has remained affordable over the years, he added: "Buyers get a lot of bang for their buck."

Bourke said sellers and their agents should beware of overpricing their listings, especially in the non-luxury market. "You don't create demand and competition through overpricing," he noted.

$20G+ over asking

Community

Bay Shore

Sale price

$490,000

With two bedrooms and one bathroom, this modest home in Bay Shore drew lots of attention.

A major selling point was the lot size, said listing agent Nikki Taylor Friedman, of Douglas Elliman Real Estate.

"It was just over a third of an acre," she said. "It was a really nice size, even though the house was only 900 square feet."

The taxes were listed as $7,329, and the property is in the Brentwood Union Free School District.

Several big-ticket items in the home had been recently updated, such as the roof, heating system, laundry units and windows. "Everything was in really nice working condition," Friedman said.

The home was listed in June for $469,000 and sold in September for $490,000. Friedman held four open houses, garnering "a steady flow of traffic," but there weren't lines out the door, she said.

"I think that buyers have become a lot more savvy as to what they're looking for, so although the multiple offer situation is still very vibrant, there's not the line of buyers just looking at everything," Friedman said.

Still, the sellers were presented with a few offers, all over the asking price. Although this price point is hard to find on Long Island, Friedman recommends that buyers "stay committed."

"What's meant to be, will be," she said.

A home with possibilities

Community

Ronkonkoma

Sale price

$490,000

The listing for this Ronkonkoma home encouraged potential buyers: "Bring your Pinterest ideas."

The three-bed, two-bath ranch hit the market in April for $489,997. It closed for $490,000 in October. With proper permits, the lower level (which includes a bedroom and a bathroom) could be converted into an additional living space, said Geri Monzillo, of Berkshire Hathaway HomeServices. She co-listed the property with Marianna Acquista.

Acquista sold this home to the seller years ago. The house could use some updates to the lower level, kitchen and bathrooms, she said.

In terms of selling points, "I think the main thing was the potential to have an apartment to help pay the mortgage and the taxes," Monzillo said.

The agents held two open houses, which created "quite a buzz," Acquista said: "We did have four offers, all around that asking price or over asking."

The taxes were listed as $9,767, and the property is in the Connetquot Central School District.

When shopping in this price range, buyers should keep an open mind and expand their search radius as much as possible, so as to not focus on just one area, Acquista said.

"Try to be flexible," she added.

Tiny home

Community

Ridge

Sale price

$420,000

Spanning 451 square feet, this home in Ridge closed for $420,000 in September. It was on the market for 17 days in June, said listing agent Kyle Kelly, of Real Broker NY.

The house was move-in ready: "[The seller] did updates throughout the property, including the windows, siding and roofing," Kelly said.

Although the living space was small (the house can be classified as a "tiny home," since it spans less than 500 square feet) it sits on a 100-by-100-foot lot. The seller "created an oasis" in the backyard, Kelly said, and the property is close to Lake Panamoka.

The home features two bedrooms and one bathroom, with taxes listed as $6,192. It is in the Longwood Central School District.

The original list price was $400,000, but Kelly had wanted to lower it to around $375,000 due to its size, he said. They ultimately received seven offers.

"I was thinking maybe if we landed somewhere near $400,000, we'd be good," he said. "It was very hard to find comparable properties, because of its size. But it appraised at $420,000 on the dot, which we were very happy with."

In the end, timing was everything: "Really what sold that property was the yard," Kelly said. "That's why we put it on the market in the summer, so that we could attract as many buyers as possible to see the value of that yard."

'Extremely well-maintained'

Community

Rocky Point

Sale price

$425,000

This two-bed, two-bath home in Rocky Point closed for $425,000 in September. Its property taxes were listed as $6,500.

The roof, siding and flooring had all been recently redone, and the sellers installed a water filtration system, said Bryce Levy, of Daniel Gale Sotheby's International Realty. He co-listed the home with William Vigil.

"It was extremely well-maintained," he said. "It wasn't one of those houses that was turned over and flipped. You had someone who did the right thing with regards to maintenance year over year, decade over decade."

The property is in the Rocky Point Union Free School District, with taxes listed as $6,500. It was listed for $429,000 in June, and received an accepted offer a month later, Levy said.

In terms of the condition, size and price point, "it was a house you could wrap your arms around and take on without much heavy lifting," the agent said.

There are several homes in Rocky Point that are 1,200 square feet and lower because they were originally built as summer cottages, the agent added. For buyers looking to save now and expand later, this area may be right for them.

"You have a lot of cottages that fall into this price point, because of the square footage and the fact that they were built originally as seasonal homes," Levy said. "So that's kind of where you win with that price range."