Special offer

Why what it sold for a year ago doesn't really matter

Real Estate Agent with Real Estate One 6501304423

I had a client that was looking at $199,000 condominium in Milford.  They sent me the zillow fact that the home had sold last year at 145,000.  The condo was owned by a 95 year old women so I am sure the whole condo was in rough shape and dated.  My client and her family was of the opinion because the home sold for so little last year they could make a lower ball offer because of the last sold price.

Unfortunately if you are the buyer that could have disasterous results for you if you really want the home.  My client wanted the home.  So I did some research on the condo complex and looked up the same 1st floor condos with the same square footage that had sold in the last year.  I found three of them.  Those condos had sold at $196,000, $199,500, and $203,000.  And 2 of them did not have granite in the kitchen or a finished basement like the one we were looking at did.  So the condo was listed and priced right.

Then I took the time to explain to my client what the seller had into the property that most people do not think about.

There are professional flippers and real estate investors that all they do everyday is research foreclosures and find out what is owed on them.  Then they go out and contact the owner or the owners family to buy them out of foreclosure.  This previous owner probably was in a nursing home.  Her family must not have had money otherwise they would have helped her and she would not have been in foreclosure for taxes and owed so much on association dues.  So they probably jumped on the chance to get $145,024.
The previous owner had lived there thirteen years prior.  So the house was dated.  The new owners who are flippers put in new carpet, new granite, painted it and most likely a few other things.  So the investor/flipper has invested.
                         $145,024                   what they paid for it
                    +       $8,000                   est taxes and insurance
                    +      $12,000                  costs to sell (commissions, transfer taxes, & title insurance
                    +        $1,330                  Association dues while flipper/investor has owned it
                    +          $700                   Taxes due while flipper/investor has owned it
                    +          $350                   Home owners insurance while flipper/investor has owned it
                    +        $1,200                  New appliances
                    +        $2,000                  New carpeting
                    +        $3,000                  New Granite
                    +        $1,800                  Painting



    So the flipper had a lot more into the home than my client at first thought.  I took the time to explain why a flipper/investor is not just going to take any low offer when they know what the true value is.  This is why it does not matter why the last price doesn't have a lot of impact on the new listing price. 

It boils down to what the home is worth today.  Just because somebody else got a deal they are not going to pass the savings onto you.  Especially if their business is flipping homes.  The flipper is out to maximize the amount they can make. 

I hope this helps you understand on how to put in an offer. 

Check out these 6 links on other webpages that I have written.

Homes for sale on Base Line Lake Hamburg MI

Lake sizes in Bloomfield MI

Lakefront homes for sale in Turtle Lake Bloomfield MI

Homes for sale on Cass Lake in West Bloomfield


Posted by


 My quote of the month:

You are the only person that can really change your life


May life always treat you and your family well.............


Russ Ravary

Real Estate One

"Helping make your next move easier!"

In the Top 2 % of Michigan Realtors

5 star reviews on Zillow, Google, Yelp, Trulia, and Angies List

cell 248-310-6239

Office 248-363-8300

*See what clients are saying about us  and Russ Ravary testimonials

8 websites to help sell your home quicker.  We have helped so many buyers and sellers move.  Read what my past clients have to say about me.  Google "Russ Ravary Zillow" or "Trulia Russ Ravary" or on Yelp or Google.  Also a "Super Service award winner on Angie's list" for helping other clients.   

Connect with me on Facebook 





By the way if you know somebody else looking to buy or sell a home I always appreciate a referral.




Joseph Doohan
Joseph Doohan - Las Vegas, NV
I offer business strategy advice for realtors

Good post, I get that alot too when dealing with properties that are in the process of being flipped. Good to highlight this Russ.

Jan 10, 2019 06:22 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

So true. Anytime a home closes for that much less than market value there is more to the story.

Jan 10, 2019 06:57 AM