We have all seen the negative media coverage with regards to the real estate market, in the Metro Detroit Area, and throughout the country. And although the current real estate market is in a state of disarray, I am here to tell you that it is nearly impossible to buy a flawless home for less than 50% of its market value. You can find amazing homes that can purchased at a tremendous discount. However, these heavily discounted properties are few and far between. When they do become available they either sell in a matter of days or attract several buyers who ultimately drive the price up.
In addition to the media, everyone has heard about a friend of a friend who has bought a walloping house in impeccable condition for just a small fraction of the price one would expect to pay. But we all know how stories get exaggerated as they pass from person to person. Just like the size of the fish gets exaggerated each time the fisherman tells the story. I once heard that someone bought a 5000 square foot house in Bloomfield Hills for $100,000 and the only work it needed was paint and carpet. Through our research on the MLS, there have been no homes over 4500 square feet sold in Bloomfield Hills for $125,000 or less, in the last 5 years.
A more reasonable scenario in this situation that we have witnessed would be a 4400 square foot, 4 bedrooms, and 3.5 bath contemporary house in West Bloomfield that recently sold for just under $200,000. However, the lower level was consumed by mold, the roof needed to be replaced, and home needed to be completely renovated, which could easily bring total investment to $300,000, if not more. If more people understood the true market conditions in the Metro Detroit Area, they would save themselves a lot of time and frustration. No one wants to waste time. This is why having a real estate agent can be an invaluable asset. They can help you determine the true market conditions in your area and advise you about what is realistic, rather then relying on the media and hearsay for your information. If you and your real estate agent understand what you are looking for, you should be able to find the house you are looking for in six showings.
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