Detroit Real Estate

Detroit homes sales prices over 3000 square feet

I recieved this email from a gentleman: 

I'm retiring this spring, and have a desire to settle in Detroit.  I like the Boston- Edison Disrict in particular.  I see a number of REOs in my target area and have researched sale for the past  24 months.  I see 9 sales on W Boston in 7 of the the sales priced at less than 25% of the inital offer, in 1 the sale priced at 63% and in the last the sale price was 79%.  Given this data, How low should I go in my offer??

I responded back:

The key points as you know from your research is the sold price per square foot, whether it was a foreclosure, regular sale, or short sale.  And the last two items you have to consider is the condition of the home versus the ones that sold, and the actual sold prices of the homes in the last six months.  That's how we determine what to offer.   

If it is an updated move in ready home we can't low ball it as low as easily as a run down foreclosure.  We have to compare it with what has sold recently.

He responded back:

 In 08 and 09 you could low ball and win In 2010, an 85%-90% offer is actually customary.

I responded back:

A lot has changed in the last year.  There is a lot more confidence in the economy than there was back then.  People are buying and there are less foreclosures, plus the banks are pricing them right.  When you get close let me know and I will pull all the latest comparables and list prices to see what they are going at.  It might surprise you that they are going so high.

I sent him all the comparables of homes that sold in the last 4 months.  And I was right.  Detroit's larger homes and home prices have stabilized in terms of list price and sales prices.  They are going in most cases within 10% of the sales price.  Some are even going over the list price . Here  

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