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)
ADDRESSLIST PRICESALE PRICEDOMSP PER SQFTSQUARE FOOTAGEYEAR BUILT
358 GLENEAGLES1690001775003563.279828051996
173 GAILES CT2349002214505175.067729502003
661 EDINBURGH CIR24990022950023374.032231002005
1497 GLENEAGLES2945002970001311027001996
1798 GLENEAGLES32900031000013393.967832992003
1449 GLENEAGLES599900560000317119.965746681997

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
ADDRESSLIST PRICESALE PRICEDOMSP PER SQFTSQUARE FOOTAGEYEAR BUILT
260 ROWE RD749004250019146.54989131964
435 W LIVINGSTON RD499004550013344.217610291948
880 OAKGROVE129900117000123104.932711151977
420 LONE TREE RD1299001250009096.153813001991
312 LONE TREE RD1459001430006196.231414861992

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
ADDRESSLIST PRICESALE PRICEDOMSP PER SQFTSQUARE FOOTAGEYEAR BUILT
232 BISHOP34900303709920.451114851880
952 WHITE HOUSE DR14390013700012080.446217031977
3591 RAMADA DR16990016500025383.249219821978
3251 JACKSON BLVD1693001690004677.880121701960
2326 ELKRIDGE CIR17990017990010082.183621891997
2555 MIDDLE RD1999001810006789.162520301988

Then I pulled the adjoining town within 2 miles.

 

RS
ADDRESSLIST PRICESALE PRICEDOMSP PER SQFTSQUARE FOOTAGEYEAR BUILT
536 GENERAL MOTORS RD820008450011576.539811041920
1415 GENERAL MOTORS RD89500923571557.507416061961
842 PANORAMA DR1449001250009174.44916791957
863 BARBERRY DR13490012550012363.160519871991
805 PANORAMA DR12990013000012574.841617371959
610 CAROLINE15290015290052110.397113851901

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.

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