I was asked today "when do you think the market will come back and what will my home be worth then?  What would you have sold my home for 2 years ago?" (Michigan)

 2 years ago I would have price the home in mid $90's-$100.  The square footage is an issue along with the bedroom situation upstairs.  I can't estimate a future price.  That wouldn't be fair to you and honestly, I don't know how long it is going to take for the market to come back.  You can find an agent to tell you what you want to hear, to price where you want to price, that doesn't help the home sell.

Homes are selling.  They must be priced to sell and sparkle perfect. 

Every month someone waits now, it costing unless you wait a couple of years and that's not gauranteed.  The market value is dropping monthly.  The foreign investors are purchasing US securities at a discount rate.  As long as that is happening we are in trouble.  Our dollar is valued less and less almost daily.  I don't believe we are done seeing the foreclosures.  More ARM's are coming due for the next couple of years.  This was only the first year.  Most ARM's adjust 3, 5 or 7 years.

Everyday more homes become available on the market at lower prices because of foreclosures.  Until we have a 6 month supply of homes on the market, it will continue to be a buyers market.  There is currently a 13 month supply of homes on the market equivalent to yours.  

I hope this helps.   

(this home now comes in at a market value of about $88k, I was suggesting pricing at $82-84k due to the saturated market and 13 month absorption)

Activerainers, please tell me how do you respond?