It is a buyers market. You want to get a great deal. You have heard all about the guy at work that bought the house for $150,000 when it was worth $400,000. Many of these are Metro Detroit urban myths. What matters is what the house is worth now. Not two years ago, or three years ago. I hear that too many times. It doesn’t matter WHAT IT WAS WORTH.
So unless you have a money fairy you need to negotiate well.
Think now, think today. That is what matters. That is the only time that matters. How does the list price compare to what has sold in the last six months? That is the most important item to know.
If the Metro Detroit home has been on the market for a long period of time and the price has dropped very little there are two reasons for that.
- The home seller can’t go any lower. They may owe that much on the mortgage. They may need a certain amount to buy their next home.
- The home seller is La-La land. They live in fantasy land. They are still believing that they can get that price from 2 or 3 years ago.
Both these types of seller’s are tough seller’s. Sometimes they are undo-able. The major problem is that usually the list price is way above what current homes are selling for. So you as a home buyer must put in a much lower offer. Usually it is an 30% -50% below offer that is needed to get the sales price in line with current sold home prices. Those types of offers insult sellers but it is necessary to get the home at current market prices.
If you want have your real estate agent send over the recent solds. Many times it doesn’t matter. The problem is that sometimes there is somebody willing to over pay for the home in order to get it. Or that the home seller will never lower the price and never sell the home.
Your real estate agent should be looking at homes that have sold in the neighborhood. Then look at the solds in the square mile, and then across the city. That is how you determine what to offer and what you should pay.
It doesn’t matter whether it is a metro Detroit foreclosure or any home that is privately owned be a smart home buyer and do your research.
- How to tell if you are getting a bargain home
- Buying a bank owned property
- Metro Detroit short sales
- Real estate abbreviations and words that you may want to know
My quote of the day is:
Winter is nature’s way of saying, “Up yours.” ~Robert Byrne
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