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.

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

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

Then I pulled the adjoining town within 2 miles.

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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