Condos are Making a Come-Back In Metro Detroit Area

This market in Metro Detroit especially Oakland County Michigan has seen it’s bad days in the last few years, but something is going on especially with Condos in around the metropolitan area. In the last two years past you could not sell a condo in the area, and now it is impossible to find one that you can even stand a chance on winning a bid on! and it’s frustrating to the Home Buyer or in this case the Condo Buyer. In the past condos did not seem attractive to buyers with the association fees and the confinement of four walls, little yard space and very close neighbors in most cases but something has happened in the area and I’m really not sure as an Real Estate what it can be? Is it the depleted housing market with little inventory driving buyers to the condos? or is it the Generation Y wanting condos to minimize the many responsibilities of owning a home? I can’t say but it is frustrating for them and myself being their agent when we can’t get an offer accepted even when we over bid. To me personally the trend towards Condo’s is certainly changing especially with the younger home buyers.

In this day of Spring Home Buyers and low inventory markets it is clear that more and more younger buyers are not concerned about association fees or the 20% most mortgages require to put down on a Condo unit or the difficulty of finding them which are FHA approved, they just want Condo’s for some reason. In my personal quest to find out why they prefer Condo’s over homes with back yards and more space they inform me that it is that which makes homes unattractive to them as they don’t seem to desire the yard work or the maintenance of a home, but in my mind it would seem logical for them to want to purchase a property that is truly theirs without association by-laws or any restrictions of what they can and cant do, but I’m completely wrong.

In any case it is extremely hard (recently) to find a condo for this next generation of buyers in the Metro Detroit area with many multiple offers,agents double dipping and the lack of inventory that is feasible to fir their needs and wants. Sometimes I find myself scratching my head, wondering if I missed something or have woken up in a whole different time and place here in the Metro Detroit area market, and as a full time agent in the area did not see this coming. As I tell my Condo buyers if you like the unit make your offer strong and go for it, don’t worry about the appraisal coming in at value (never thought I would ever say that) but focus on getting the offer accepted then worry about that, don’t get me wrong it is a concern, but knowing that this is what is happening all over the area and offers being well over what comps show it seems to be the only way to get your foot in the door.

My fellow agents who work very hard and most are ethical and do the best they can for their buyers and sellers, there has been an interesting thing going on with the Condo Sales in the area and it is nothing new nor is it unethical, but many of these listing agents are finding themselves double dipping or as I call it Dual Agents which sometimes I feel is unfair as they have the “inside” story on the offers that have been submitted and I’m not implying anything bad, just frustration as when it comes to Condos and our buyer offers it seems a losing battle. The market is doing so much better than it has been and I know things will even improve more as time goes by but I did want to share my story of what I believe is the new wave of buyers and the demand for Condo’s by the younger buyers that are now out looking at purchasing their new place to live.

My advise for Condo Buyers and Buyer Agents

• Be patient and explain to your buyers the current market situation as far as Condos
• Go for the”Gusto”and make your offer count (ask for less concessions as possible)
• Plan to put down more money to get your offer accepted
• Know going in that most of these condos will have multiple offers
• Ask questions as to why the condos are more appealing to your buyers

No way is this to be taken as gospel, but only my opinion and what I see going on in my market and my perspective of the way of the future. I do hope it helps someone over come their frustrations in this ever changing market in which we now reside.