A modest-sized home is on the market for $3.5 Million in a suburb of Buffalo, New York. Why? Location, Location, Location.

Housing prices have been on the rise all across the United States for some time now. In Upstate, Central, Western, The Capital Region, North Country, and the Southern Tier of New York State, prices have followed this trend. These regions have always been considered some of the most affordable places in the United States to buy a nice home. While that is still true, there's no doubt prices have gone up drastically. A home that cost, for example, $150,000 in a good neighborhood 5 years ago will sell for double, or more, that price today. Several factors have gone into driving prices up, making it a seller's market.

That being said, a 1,300-square-foot house that is well-kept and in a good neighborhood can go anywhere from, give or take,  $175,000 to $350,000 in these areas of New York State we are discussing. Sometimes more, but this is a pretty fair range to expect right now, from my experiences.

That's why when I came across a nice home in a good town that is 1,344-square-feet with 3 beds and 1 bath selling for $3.5 MILLION I was surprised.

What the Home Offers

Now, it's a nice home, depending on your aesthetic. It has a gorgeous, new driveway. From the outside pictures below, it appears well taken care of. It has land: 5.63 acres. That's a nice thing to have, but it's not like this land is sitting on an oil well. So, why is it going for $3.5 Million? It seems absurd.

The devil, though, is in the details. While the home and land aren't sitting on an oil well, they are sitting on a potential, and metaphorical, gold mine.

READ MORE: Borderland Festival Announces Lineup 

This property is located at 5265 Big Tree Rd in Orchard Park, New York. A very nice town with great schools. It's also home to the Buffalo Bills, and that's why the property is so expensive.

Why this Small Home is On The Market for $3.5 Million

The home, and land being sold, are within short walking distance of Highmark Stadium, which is the home of the Buffalo Bills. This includes the brand-new stadium being built directly across the street from the original. The lots being sold with this home are used as parking and can (should) generate a LOT of income. They also could be repurposed for commercial use to open things like hotels, restaurants, and other attractions for game day festivities and beyond.

That's why a 1,344-square-foot home with 5.63 acres is selling for $3.5 million. Homes and land selling in this area for millions of dollars has become a very common trend ever since the new stadium was announced.

The location has tons of earning potential. Check out the home and property, listed on Zillow by Verax Real Estate LLC and Realtor Alina Pierowicz, who can be reached at 716-908-0057.

$3.5 Million for Small Home in Western New York?

A pretty small house is on the market for $3.5 Million in a suburb of Buffalo, New York. Why? Location, Location, Location.

Gallery Credit: Zillow, Verax Real Estate LLC, Alina Pierowicz 716-908-0057

Would you pay that much for this property?

Personally, I think it's a massive, and maybe foolish, risk. At least, I think it is for a small business person. While a new stadium will open in 2026 and promises of major economic development have been made, I think they will be hard to fulfill. When the original stadium was built, the same promises were made. In my opinion, those promises never really materialized the way it was sold to everyone. It could happen, but aside from gamedays and concerts (which have been sporadic, historically), how are you making money off this investment the rest of the year?

There are ways, of course. Ways a corporation and/or development company would have in buying this land vs. a person, or group of people, in a small business situation.

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 pm to 7 pm. Pat@WBUF.com. @PMBuffalo

This isn't the only home near the stadium going for a LOT of money. Check out this recent listing.

Why This Small House is Going for $1.5 Million in Western New York

2 words: Buffalo Bills.

Gallery Credit: Zillow, Verax Real Estate LLC 716-866-6284, Alina Pierowicz 716-908-0057

More From The New 96.1 WTSS