Todays article is being provided so buyers and sellers can understand our local market a little bit better. Real estate is local. Just because the national news says something does not always mean the Detroit area real estate is doing the same thing. Not only can it be different, it could be costly for you it you followed the national news when the local market is different.
Inventory of Metro Detroit homes for sale is still way down on both the lower end homes and lake homes. There is more inventory on the higher price ranges to chose from. That is because there are fewer buyers and also because Mr. Trump's tax plan did away with some of the deduction on taxes and mortgage interest over a certain amount. So some of the benefits are no longer there.
This year I have been all over metro Detroit listing homes and selling homes. So much of this article is personal experience along with information gathered from other real estate professionals.
Lower price range
Metro Detroit real estate is a hot market in the lower price ranges. Showings and sales have picked up in the under $400,000 price point since February. The under $250,000 homes for sale are really hot! Every buyer that I have worked with in the last month in those price points have been involved in a multiple offer situation. We have been fighting anywhere from 3 to 10 other bidders. One of the homes I listed this month was in Allen Park. We had 5 offers with 4 of them over list. One of the other homes sold in 2 days. So if the home is in good shape it is going to sell quickly. Staging is important.
KEY IS. 1.) Get alerts on new homes that are listed daily
2.) Get out and see as quick as possible
3.) If the home is what you want make a strong offer especially in the first week. Low ball offers are not working. What you have to do is look at the comparables and think how the home compares to all the others you have seen. Don’t go crazy and way over bid, but most times you will have to go over list in order to get the home in a multiple offer situation.
4.) There are little things you can do to help get the bid. A good agent will help you frame your offer right, advise on what things will make your offer stand out, and use a few “secrets” to help you get your bid to win.
Here is what is happening..... 3686 houses were listed in Oakland County. 1673 went pending last month and 1336 closed. So that is about a 2.2 month supply of homes. Still strong considering many homes in Oakland County are priced over $500,000.
Many Metro Detroit lake home sellers are pricing lake homes at the top or over the top of the market. You have to be careful and look at the comps. Having a good lake realtor in your corner helps to identify the crazy sellers. Sometimes even the over priced lake homes will sell because the buyer just has to live on that lake or really, really wants a lake home. So they sometimes over pay. Every year I see homes sell at high prices that I thought were high, but the buyers wanted that lake home.
It is not unusual for lake buyers to be looking for a year or more. As a lakes area realtor I cannot stress enough that you really have to compromise. There is no perfect home off the lake, and there definitely is no perfect lake home. For example my own house. It has a stunning view, good piece of property, but the bathrooms are small. I had to compromise. Yes I could looked and waited for a more updated home with bigger bathrooms, but I got a great home. So compromise and get your lake home this year. The buyers that do not compromise many times end up never buying a lake home.
Same rules… get out and see it immediately. Put in an offer quickly and make it a strong offer based on looking at comparables. Bidding on a lake home depends on many factors that are unique like lake frontage, size, sandy bottom, size of lake, and desirability of the lake. A good lake realtor will guide you.
High end homes
Bidding on higher end homes comes down to multiple factors. How long they have been on the market, what the comparables are....to determine how to bid. Yes, there are some sellers that won’t accept that lower bid, but it does not hurt to try when the house has been sitting for months or years. Not crazy low as that is going to be turned down, but a bid with an explanation why the price.
If you have questions and not working with a real estate agent give me a call or text at (248)310-6239. I am a full time, 19 year experienced realtor that has helped buyers and sellers make their move easier. I have over 75 great reviews too.....so give me a call to get started on your move.