Detroit Real Estate

Home negotiation - How to bid and win a home here in Metro Detroit suburbs.  My first piece of advice I tell most Metro Detroit home buyer that is looking at homes don't do extreme low ball bids, and expect to win the home.  Doing low ball bids is just going to create frustration, and then you are going to blame somebody for not winning the home.

I had one guy that was bidding $50,000 - $70,000 below homes that were listed at $150,000 - $170,000.  He never won one and no matter what I said he would do it again.  I finally let he go and find another agent.  He still has not one a home after 2 other agents and a year and a half of bidding.  He still doesn't get it.  He is just wasting his time.  He will never get a home doing low ball bids unless the market goes back to being a slow market.  Bidding on a home in this Southeastern Michigan real estate market is not easy.   

It is no longer a buyers market in the better cities in the suburbs. By that I mean Plymouth, Royal Oak, West Bloomfield, Birmingham, Northville homes aren't being given away.  If the house is a decent house there will most likely be multiple buyers looking at it and very possibly multiple offers.  About 40 -50% of the "good" foreclosures are going over list price. 

Yes there are a lot of low price mediocre homes in the less desirable cities.    So you and your real estate agent should know what is happening in the city you are looking in.  One way to find that out is look at the last 90 days of sold homes.  If you are buying a foreclosure then look at how the foreclosures have sold.  But also look at the regular home sales.  Especially if the foreclosed home is in great shape. 

What you should do is:

• look is at the recent sold homes in the area.
• take into account what you can afford to pay and stay within your budget (remember the taxes)
• bid according to how bad you want it
• if you love it and have to have it.... bid high....put your best foot forward
• if the home is just one of the many you like and you want a deal then put in a lower bid (not outrageously low) 
• if the house is the best you have seen then bid for it that way....don't be cheap (other people know how nice it is too.)

Making a good bid based on market conditions, the home's condition, and how much you like the home is the key to your success.  If you put your best foot forward.  By putting your best foot forward I mean what you can financially afford and at the same time what you won't feel bad if you lost the home.    So if you can afford to pay $200,000 and you bid $190,000 and you love the house and lose it.  Then regret it I don't think you put your best foot forward.  No regrets is what you want.  If it's the best house you have seen, then bid to win.

Search Metro Detroit homes for sale 

Feel Free to call or email me with any questions.