Whether you are bidding on a Metro Detroit foreclosures or any Metro Detroit home for sale here are 5 things to take into account
- How long has the house been on the market? Has it just come on the market or has it been on the market for six months. If it just came on the market the seller is most likely going to turn down a low ball offer. If the house has been on the market for six months then the seller might consider a low ball offer especially if it is a bank or HUD
- Is it one of the best homes you have seen for the price? If you have been looking at other homes and this home is better than all the other homes then look at it this way. Would you have to pay more later on for an inferior house to the one you are bidding on. What I mean is if the other houses are in the $150,000 range and this house is nicer and at $130,000. Then maybe you should be bidding with in 5% of list price or full price in order to get it.
- What have been the sold prices in the area? have your Metro Detroit Realtor pull all the recent sold homes within the last six months in the local area that are like the home you are bidding on. How does the list price or your offer price compare to the recent sold prices? Those recent sold prices are the best indicator of what your local market is doing pay attention to them.
- What is the trend for the market right now? In the last few weeks I have seen a lot of homes sold. Bank owned properties are selling quickly. Sometimes at or above list price. The real estate market is picking up a little. What is it doing in your area? Once again have your Metro Detroit Realtor pull all the sold homes in the last 30 days. See how many are selling for list price. Or how many are being sold cheap. Look at how close the list price of the homes are compared to the sold price.
- How bad do you really want it? This is the ultimate and final question. Do you like the house? Do you want to go out and look more? Is this the best house you have seen? Is it a fair value even at the highest price you would have to bid? That is the question.
I can’t make the decision on what to bid for you. I can give you advice and the facts but the ultimate choice is yours. I do this because I never want a client to say “I made them over pay for a house”, or “that I lost the house for them” because they didn’t bid enough.
Using those 5 factors that is how you should bid. If you really want it, bid to get it…..
Russ Ravary Your Metro Detroit Realtor
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