The key to get a good home deal in the Metro Detroit is to either know the market or have a good real estate agent that does.
So many home buyers depend on friends, family, or other people on what is a good deal or how they should bid. After all the TV newscaster says...... As a metro Detroit real estate agent we can tell you what is going on in the market.
There are home bargains out there but you can't:
- decide if the home price is good because of the listing price
Many metro Detroit home buyers want something off the list price. But some banks and short sales are putting the list price below the market price. Other homes in the area might be selling for $25,000 more. So your bid on the foreclosed house may have to be at or above list price. It just depends on where the list price is and what the recent sold prices are for the area and for a similar home.
- low ball every home or every offer
I recently pull all the Livonia foreclosed home sold prices and compared to them to the list prices. Out of 25 homes 11 homes sold at or above list price and only 1 sold at 25% below list price. But I pulled Novi sold homes and the result was completely different. I even found some homes that sold in the same Novi subdivision. There were 3 or 4 homes that sold for over price and it was about the same amount that sold for 20 -25% below list price.
- go off what the home was worth 2 or 3 years ago.
It doesn't matter what the house was worth 3 years ago. What matters is what comparable homes are selling for right now. Forget about what the house was worth years ago... it's old news and has no bearing on it's price now. A new car 3 years ago was worth alot of money but today it is 3 years old and worth a lot less.
Having a real estate agent that will go the extra mile for you that's what is important. A agent that will pull the recent sold foreclosures and the recent sold homes in the area and not just go with any number to just get the deal done. If you base your offer on what other similar homes have sold for recently you will know whether you got a bargain.
I recently had an attorney advise their client to put in a low ball bid on a home the home buyer really, really wanted. We had looked at about 30 homes and they loved this one. It was decently priced and I suggested to only come in at 5% below list price. But no the attorney said the Canton real estate market was very bad. So put in a 25% below list price said the attorney. The listing agent called and said there were multiple offers. The attorney said they were bluffing and not to raise the price. I knew they were going to lose the house. When the home closed with the other buyer it sold at about 3% below list price. My home buyers were heart broken.
But the good news is that we found another house and they listened to me and didn't listen to the attorney the second time. They got the second home below market price. Not a lot but a little, and they got the home they wanted.
Russ Ravary your metro Detroit area Real estate agent
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