Why buying a Metro Detroit foreclosure may cost you money
Northville first time home buyer tips
If you are a Metro Detroit first time home buyer sometimes the best deal may not be aforeclosure. Right now in the Metro Detroit real estate market I am seeing some relocation homes at tremendous deals. One of my clients bought a 4000 square foot Plymouth home built in 2000 with granite counter tops for $385,000. Under a $100 a square foot for a home under ten years old!
But more importantly as a home buyer you really need to look at how much work is needed to bring a Metro Detroit foreclosure up to par.
What would you buy? A Northville home ($200,000) that has an updated kitchen, updated windows, and new roof or a Northville foreclosure that has no updates for $170,000?
| Northville foreclosure $170,000 | Northville Updated home $200,000 |
| windows $ 8,500 | |
| Kitchen $ 28,000 | |
| roof $ 6,800 | |
| Total cost to update $43,300 | |
| Total cost $213,300 | $200,000 |
what would you buy?
It would cost $43,300 to make the Northville foreclosure be as worth as much as the other Northville MI home. So the other Northville home that was updated would be the better bargain. So as a home buyer that is just one consideration to think about.
The other consideration is where would you get the money to do the updates? One of the things I would suggest you to do when looking at two different homes you like is to compare what one has and how much it would cost to be on par. Just like I did above.
The bottom line is if you could afford both house payments the updated Northville MI home would be the best deal.
Russ Ravary your Northville MI realtor – feel free to call me with questions anytime
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