What do I bid on a house?

Everybody wonders what they should be bidding on a house.   One of the best ways to determine what the house is worth is pull all the recent sold homes.  First in the neighborhood, then the city or township on then close to the subject home.  You want homes that are similar in style, size, and sold within the last 6 months.  Anything sold older than 6 months in this rough economic market doesn’t matter.

I am going to use for an example a house I looked at in Milford MI.  It was about 1700 square foot colonial.  And the asking list price was about $72- $73 a square foot.

I have highlighted the homes that I think are the closest as a comparable.  Many times you can’t tell what the condition of the inside of the homes were unless you read the  remarks section.  Then you can tell if it had updates or needed work.


When I pulled recent sold homes in the square mile of the house we looked at there were NO HOMES THAT SOLD IN THE LAST SIX MONTHS WITHIN A SQUARE MILE OF THE HOUSE.  Which makes it tougher to determine what the house should be worth.  Then I moved over a square mile.


Then I went further away within 2 square miles around the property that were colonials or cape cods.  Still in the same city.  This is what I found.

 

Homes that sold within last 6 month (2 Mile)
ADDRESS LIST PRICE SALE PRICE DOM SP PER SQFT SQUARE FOOTAGE YEAR BUILT
358 GLENEAGLES 169000 177500 35 63.2798 2805 1996
173 GAILES CT 234900 221450 51 75.0677 2950 2003
661 EDINBURGH CIR 249900 229500 233 74.0322 3100 2005
1497 GLENEAGLES 294500 297000 13 110 2700 1996
1798 GLENEAGLES 329000 310000 133 93.9678 3299 2003
1449 GLENEAGLES 599900 560000 317 119.9657 4668 1997

But these are not good comparisions either.  They are too largeof a home or too new.  But does give a range of price per square foot.


Then I pulled every home in the same area but included ranches and bungalows.  Which is not what you would normally do but since there are no comparisions you want to look at everything that sold in the last 6 months.  Ranches normally sell for more per square foot than a colonial.  But again this give a range of price per square foot

 

Ranches and bungalows within 2 square miles
ADDRESS LIST PRICE SALE PRICE DOM SP PER SQFT SQUARE FOOTAGE YEAR BUILT
260 ROWE RD 74900 42500 191 46.5498 913 1964
435 W LIVINGSTON RD 49900 45500 133 44.2176 1029 1948
880 OAKGROVE 129900 117000 123 104.9327 1115 1977
420 LONE TREE RD 129900 125000 90 96.1538 1300 1991
312 LONE TREE RD 145900 143000 61 96.2314 1486 1992

Then I pulled for the whole township.  2 story homes that sold in the last six months within 400 square foot above or below.

 

2 story homes
ADDRESS LIST PRICE SALE PRICE DOM SP PER SQFT SQUARE FOOTAGE YEAR BUILT
232 BISHOP 34900 30370 99 20.4511 1485 1880
952 WHITE HOUSE DR 143900 137000 120 80.4462 1703 1977
3591 RAMADA DR 169900 165000 253 83.2492 1982 1978
3251 JACKSON BLVD 169300 169000 46 77.8801 2170 1960
2326 ELKRIDGE CIR 179900 179900 100 82.1836 2189 1997
2555 MIDDLE RD 199900 181000 67 89.1625 2030 1988

Then I pulled the adjoining town within 2 miles.

 

RS
ADDRESS LIST PRICE SALE PRICE DOM SP PER SQFT SQUARE FOOTAGE YEAR BUILT
536 GENERAL MOTORS RD 82000 84500 115 76.5398 1104 1920
1415 GENERAL MOTORS RD 89500 92357 15 57.5074 1606 1961
842 PANORAMA DR 144900 125000 91 74.449 1679 1957
863 BARBERRY DR 134900 125500 123 63.1605 1987 1991
805 PANORAMA DR 129900 130000 125 74.8416 1737 1959
610 CAROLINE 152900 152900 52 110.3971 1385 1901

So our home that we looked at falls in the price per square foot range.  So then you have to look at how your homes condition compares to the sold homes.  That takes a little more time reading over the remarks sections.  But then you have a good gauge of what you should bid.

For more Wayne County and Livonia real estate home buyer tips

or more Metro Detroit real estate home buyer tips click on the highlighted brown wording

I hope this helped.

search Northville homes for sale

 

 

Posted in Blog

Search Homes

Untitled